CFR vs CIF
Key Difference
Both put freight on the seller and transfer risk at the port of loading. CIF additionally requires the seller to buy minimum marine cargo insurance; CFR does not.
When to use CFR?
CFR avoids paying for insurance the buyer doesn't need if they already have their own policy or preferred insurer.
When to use CIF?
CIF is preferable when the buyer has no insurance arrangement of their own and wants the shipment insured from the start.
Full Comparison
CFR – Cost and Freight
Sea/Inland Waterway Only- Seller's Responsibility
- Export-clears and loads the goods on board, and pays freight to the named port of destination — but does not insure the cargo.
- Buyer's Responsibility
- Handles insurance (optional), transport after the destination port, and import formalities.
- Risk Transfer Point
- When the goods are placed on board the vessel at the port of shipment — even though freight is paid to destination.
PackagingSeller
Export ClearanceSeller
Origin Inland TransportSeller
Main Carriage (Freight)Seller
Insurance—
Import ClearanceBuyer
Destination Inland TransportBuyer
Duties & TaxesBuyer
CIF – Cost, Insurance and Freight
Sea/Inland Waterway Only- Seller's Responsibility
- Like CFR, plus the seller must also arrange minimum-cover (ICC C-level) marine cargo insurance.
- Buyer's Responsibility
- Handles transport after the destination port and import formalities.
- Risk Transfer Point
- When the goods are placed on board the vessel at the port of shipment.
PackagingSeller
Export ClearanceSeller
Origin Inland TransportSeller
Main Carriage (Freight)Seller
InsuranceSeller
Import ClearanceBuyer
Destination Inland TransportBuyer
Duties & TaxesBuyer
Frequently Asked Questions
Both put freight on the seller and transfer risk at the port of loading. CIF additionally requires the seller to buy minimum marine cargo insurance; CFR does not.