What does CFR (Cost and Freight) mean?

CFR (Cost and Freight) is an Incoterm used in international trade. CFR is one of the three Incoterms commonly used in Timor-Leste, and means, “The CFR incoterm means all charges, including freight up until the intended port of destination, are born by the seller. However, as a buyer be cautious. The risk for the buyer takes over when the goods are loaded on the vessel, so even though you are not paying for the freight you may want to insure your shipment. All remaining charges at the destination are then settled by the buyer.”