What difference between Incoterms CFR (Cost and Freight) and CIF (Cost, Insurance, and Freight)?

  • Cost and freight (CFR) and cost, insurance, and freight (CIF) are terms used in international trade for the shipping of goods by sea.
  • CFR requires the seller to arrange for the transport of goods by sea to the buyer’s (required) destination. This includes the cost of shipping but excludes the purchase of marine insurance.
  • CIF is similar to CFR, except it also requires the seller to take out an agreed amount of marine insurance to protect against the loss, damage, or destruction of the order.