{"id":8351,"date":"2026-05-09T06:10:50","date_gmt":"2026-05-09T06:10:50","guid":{"rendered":"https:\/\/brf-logistics.com\/?p=8351"},"modified":"2026-05-10T04:21:25","modified_gmt":"2026-05-10T04:21:25","slug":"cfr-shipping-complete-guide-cost-and-freight","status":"publish","type":"post","link":"https:\/\/brf-logistics.com\/id\/cfr-shipping-complete-guide-cost-and-freight\/","title":{"rendered":"CFR Shipping: Complete Guide (Cost and Freight)"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">CFR stands for <strong>Cost and Freight<\/strong>, and it is also commonly referred to as C&amp;F. It is one of the most widely used Incoterms in international trade, especially for ocean freight shipments from China.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If your shipment is based on CFR terms, the process is straightforward:<br>You only need to appoint a reliable freight forwarder, and your supplier will deliver the goods to the designated warehouse. From there, the logistics provider manages the shipment, while you are responsible for costs after arrival at the destination port.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Additional Service:<\/strong><br><strong>BRF Logistics<\/strong> offers <strong><a href=\"https:\/\/brf-logistics.com\/storage\/\" title=\"\">free warehousing across major cities in China<\/a><\/strong>. Simply ask your supplier to send the cargo to our warehouse, and we will handle the rest \u2014 from booking and export clearance to final shipping arrangements.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">What is CFR?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/brf-logistics.com\/fcl-shipment-from-china\/\" title=\"FCL Shipment from China\">CFR<\/a> (Cost and Freight) is an international trade term under Incoterms rules, where the seller is responsible for paying the cost and freight to transport goods to the destination port.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Under CFR terms:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Seller is responsible for:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Export customs clearance<\/li>\n\n\n\n<li>Inland transportation to port<\/li>\n\n\n\n<li>Loading and ocean freight<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Buyer is responsible for:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Unloading at destination<\/li>\n\n\n\n<li>Import clearance<\/li>\n\n\n\n<li>Duties and taxes<\/li>\n\n\n\n<li>Final delivery<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">\u26a0\ufe0f Important:<br><strong>Risk transfers from seller to buyer once the goods are loaded on board the vessel at the port of origin<\/strong>, even though the seller pays the freight.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"768\" src=\"http:\/\/brf-logistics.com\/wp-content\/uploads\/2026\/02\/sea-port3-1024x768.jpg\" alt=\"\" class=\"wp-image-7835\" srcset=\"https:\/\/brf-logistics.com\/wp-content\/uploads\/2026\/02\/sea-port3-1024x768.jpg 1024w, https:\/\/brf-logistics.com\/wp-content\/uploads\/2026\/02\/sea-port3-300x225.jpg 300w, https:\/\/brf-logistics.com\/wp-content\/uploads\/2026\/02\/sea-port3-768x576.jpg 768w, https:\/\/brf-logistics.com\/wp-content\/uploads\/2026\/02\/sea-port3.jpg 1440w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">What are Incoterms?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Incoterms (International Commercial Terms) are globally recognized rules published by the International Chamber of Commerce (ICC).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">They define:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Responsibilities between buyer and seller<\/li>\n\n\n\n<li>Cost allocation<\/li>\n\n\n\n<li>Risk transfer points<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The latest version is <strong>Incoterms 2020<\/strong>, which includes 11 standardized trade terms, including CFR.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">CFR Cost Structure<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The basic CFR pricing formula is:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>CFR = FOB + <a href=\"https:\/\/freightslogistics.com\/bonded-warehouse-in-australia\/\" title=\"\">Ocean Freight<\/a><\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Where:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/brf-logistics.com\/sea-freight-from-china-to-usa\/\" title=\"\">FOB<\/a> (Free on Board): cost up to loading at origin port<\/li>\n\n\n\n<li>Ocean Freight: shipping cost to destination port<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Alternative formula:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>CFR = CIF \u00d7 [1 \u2013 (1 + Insurance Rate) \u00d7 Insurance Rate]<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Note:<br>CFR does <strong>not include insurance<\/strong>, so buyers should consider purchasing cargo insurance separately.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">CFR vs Other Incoterms<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">CFR vs FOB<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>FOB: Buyer pays ocean freight<\/li>\n\n\n\n<li>CFR: Seller pays ocean freight<\/li>\n\n\n\n<li>Same: Risk transfers when goods are on board<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">CFR vs CIF<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>CFR: No insurance included<\/li>\n\n\n\n<li>CIF: Insurance included<\/li>\n\n\n\n<li>Same risk transfer point<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">CFR vs EXW<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>EXW: Buyer takes almost all responsibility<\/li>\n\n\n\n<li>CFR: Seller handles export and main transport<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Who Pays What Under CFR?<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Cost Item<\/th><th>Seller<\/th><th>Buyer<\/th><\/tr><\/thead><tbody><tr><td>Factory pickup<\/td><td>\u2714<\/td><td><\/td><\/tr><tr><td>Export clearance<\/td><td>\u2714<\/td><td><\/td><\/tr><tr><td>Ocean freight<\/td><td>\u2714<\/td><td><\/td><\/tr><tr><td>Insurance<\/td><td><\/td><td>\u2714 (optional)<\/td><\/tr><tr><td>Destination charges<\/td><td><\/td><td>\u2714<\/td><\/tr><tr><td>Import duties &amp; taxes<\/td><td><\/td><td>\u2714<\/td><\/tr><tr><td>Final delivery<\/td><td><\/td><td>\u2714<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Does CFR Include Duties?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">No.<br>Under CFR terms, <strong>import duties, taxes, and customs clearance fees are the buyer\u2019s responsibility<\/strong>.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Risk Transfer in CFR<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udc49 Risk transfers when goods are loaded onto the vessel at the origin port.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This means:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Seller pays freight<\/li>\n\n\n\n<li>Buyer assumes risk once goods are on board<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Therefore, cargo insurance is highly recommended.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Can CFR Be Used for Air Freight?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">No.<br>CFR is only applicable to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Ocean freight<\/li>\n\n\n\n<li>Inland waterway transport<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">For air shipments, <strong>CPT<\/strong> or <strong>CIP<\/strong> should be used instead.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Is CFR Suitable for Letters of Credit (L\/C)?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Yes.<br>CFR is commonly used in L\/C transactions because:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Documentation is clear (Bill of Lading, Invoice, etc.)<\/li>\n\n\n\n<li>Responsibilities are well defined<\/li>\n\n\n\n<li>Bank compliance is straightforward<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Can CFR Be Used for Container Shipping?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Yes.<br>CFR is widely used for:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Full Container Load (FCL)<\/li>\n\n\n\n<li>Less than Container Load (LCL)<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">However, in some containerized shipments, FOB or FCA may be preferred to reduce risk disputes.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">How to Optimize CFR Shipping Costs?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">To reduce shipping costs:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Optimize packaging to save space<\/li>\n\n\n\n<li>Book early to avoid peak season surcharges<\/li>\n\n\n\n<li>Choose a reliable freight forwarder<\/li>\n\n\n\n<li>Plan efficient shipping routes<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Working with a professional logistics provider like <strong>BRF Logistics<\/strong> helps ensure better rates and stable space availability.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Why Choose BRF Logistics?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>BRF Logistics<\/strong> provides:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Free warehousing across China<\/li>\n\n\n\n<li>One-stop logistics solutions (booking, customs, shipping)<\/li>\n\n\n\n<li>Strong carrier partnerships<\/li>\n\n\n\n<li>Professional operations team<\/li>\n\n\n\n<li>Tailored shipping solutions<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Whether you are a first-time importer or a high-volume buyer, we ensure efficient and reliable global logistics support.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\">CFR is a practical and cost-effective Incoterm, ideal for:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Buyers with some import experience<\/li>\n\n\n\n<li>Shipments where sellers handle main freight<\/li>\n\n\n\n<li>Ocean freight cargo<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">However, understanding <strong>risk transfer and insurance responsibilities<\/strong> is essential.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udc49 Partner with <strong>BRF Logistics<\/strong> to simplify your global shipping and build a more efficient supply chain.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>CFR stands for Cost and Freight, and it is also commonly referred to as C&amp;F. It is one of the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7941,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"disabled","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[11,18,12,22],"tags":[],"class_list":["post-8351","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-news","category-sea-freight","category-trade-rules"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/brf-logistics.com\/id\/wp-json\/wp\/v2\/posts\/8351","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/brf-logistics.com\/id\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/brf-logistics.com\/id\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/brf-logistics.com\/id\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/brf-logistics.com\/id\/wp-json\/wp\/v2\/comments?post=8351"}],"version-history":[{"count":1,"href":"https:\/\/brf-logistics.com\/id\/wp-json\/wp\/v2\/posts\/8351\/revisions"}],"predecessor-version":[{"id":8352,"href":"https:\/\/brf-logistics.com\/id\/wp-json\/wp\/v2\/posts\/8351\/revisions\/8352"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/brf-logistics.com\/id\/wp-json\/wp\/v2\/media\/7941"}],"wp:attachment":[{"href":"https:\/\/brf-logistics.com\/id\/wp-json\/wp\/v2\/media?parent=8351"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/brf-logistics.com\/id\/wp-json\/wp\/v2\/categories?post=8351"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/brf-logistics.com\/id\/wp-json\/wp\/v2\/tags?post=8351"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}