CFR vs CIF: Understanding the Key Differences in International Shipping
The article “CFR vs CIF: Understanding the Key Differences in International Shipping” explains the distinctions between the two Incoterms — Cost and Freight (CFR) and Cost, Insurance, and Freight (CIF). Both terms indicate that the seller is responsible for arranging and paying for the transportation of goods to the destination port. However, under CIF, the seller must also provide marine insurance coverage for the shipment, while under CFR, insurance is the buyer’s responsibility. The guide helps importers and exporters understand how these terms affect risk transfer, cost responsibilities, and overall shipment management in international trade.