What is CIF/CFR?

Cost-Insurance plus Freight, or Cost plus Freight is an ocean freight term. Under CIF or CFR terms, Trabocca contracts with an exporter to facilitate coffee movements to a vessel, across the sea, and to the port of discharge. Container moves on Trabocca’s ocean freight contracts and is paid for by the seller, Trabocca. While underway, Trabocca provides the roaster/buyer with documents. Responsibility and risk shift to the roaster once the container has reached the destination port. Roaster facilitates and is financially responsible for customs clearance, trucking from the port, and delivery to the facility of their choice. Under CIF terms, Trabocca (seller) accounts for insurance to the nominated port. Under CFR terms, insurance is not included.