CFR

CFR is followed by a destination port, for example CFR Los Angeles or CFR Busan. It works like CIF without the insurance: the supplier clears export and books the ocean freight, but the buyer carries the risk during the voyage and should buy its own cargo insurance. The buyer also pays destination charges, customs clearance and import duty.

The common mistake is assuming "freight included" means the supplier is responsible if the cargo is damaged at sea; it is not. As with CIF, the supplier's forwarder controls the booking, which can lead to high destination fees. See CIF vs FOB for the trade-offs.