Trade terms
CFR Coffee
Quick answer
Under CFR the seller pays the cost of carriage to the named destination port, but risk passes to the buyer when the goods are on board at origin — exactly as under FOB. The seller is not obliged to insure. A buyer on CFR terms without their own marine cover is uninsured for the whole voyage.
The split that catches people out
Cost and risk part company at the ship’s rail
Under CFR the seller pays freight all the way to the destination port. But if the container is lost or damaged in mid-ocean, that is the buyer’s loss — risk passed when the goods were loaded at origin. The seller has paid for a voyage whose risk the buyer carries.
Under all three terms risk passes when the goods are on board at the port of loading. CFR and CIF move the freight cost to the seller — they do not move the risk transfer point.
This is not a flaw in the term — it is the point of it. CFR exists so a seller with good freight rates can bundle carriage into the price while leaving the buyer with the insurable interest they already had.
What each party does
| Seller | Buyer | |
|---|---|---|
| Preparation, packing, inland transport | Yes | — |
| Export clearance | Yes | — |
| Loading on board | Yes | — |
| Ocean freight to named port | Yes | — |
| Marine insurance | Not required | Buyer should arrange |
| Risk from loading onwards | — | Yes |
| Discharge at destination | Per contract of carriage | Often buyer |
| Import clearance and duties | — | Yes |
When CFR makes sense
- 1The seller has better freight rates. On some East African routings an exporter shipping regular volume books better than an occasional importer.
- 2You already have an open cargo policy. Then the absence of seller insurance costs you nothing — your policy covers it — and you get the freight benefit.
- 3You want a landed-cost comparison. CFR gives a single number to compare across origins without separately pricing freight.
- 4Freight volatility. CFR shifts freight-rate risk to the seller for the contracted shipment.
Conversely, if you have no marine cover, CIF is the safer term — or arrange cover and take the CFR price.
Points to agree
- Named destination port. CFR requires it. "CFR Europe" is not a term.
- Discharge costs. Whether terminal handling at destination is in the freight or charged separately — this is a common source of unexpected cost.
- Routing and transhipment. Whether transhipment is permitted, and via where; it affects transit time materially.
- Transit time expectation. Not a contractual guarantee under CFR, but worth stating as an expectation.
- Insurance confirmation. Confirm in writing that the buyer’s cover attaches from loading at origin.
CFR quotations
We can quote CFR to your destination port. Confirm your marine cover attaches from origin loading before deciding between CFR and CIF.
Request Current Crop OfferFrequently asked questions
What is the difference between CFR and CIF?
Is CFR the same as C&F?
Who insures the coffee under CFR?
Does CFR include unloading at the destination port?
Tell us the coffee you need
Lots can be specified by origin, region, process, grade, screen, moisture, defect tolerance, crop year and packaging. Send what you know and we will confirm what each origin realistically supports.
Keep reading
Related guides
- FOB CoffeeFOB in green coffee contracts: what the seller delivers, where risk transfers, and the East African specifics of inland transit from landlocked origins.
- CIF CoffeeCIF in green coffee contracts: what the seller’s insurance obligation actually covers, why minimum cover is often not enough, and when CIF is the right basis.
- Incoterms for CoffeeHow Incoterms apply to green coffee shipments: the terms actually used, where cost and risk transfer under each, and how to choose one for your situation.