What are the advantages of cost and freight?

Cost and Freight (CFR) is an incoterm that benefits buyers by ensuring that the seller covers the costs of transportation to the port of destination, reducing the buyer's logistical burden. This arrangement allows buyers to have a clearer understanding of total shipping costs upfront, as the seller includes freight charges in their pricing. Additionally, it can streamline negotiations, as the seller manages shipping logistics and can potentially secure better freight rates. However, buyers should remain aware that the risk transfers to them once the goods are loaded onto the vessel.