Working sequence

Where cost and risk split under CFR

Most problems with cfr cost and risk cutover show up before the booking is confirmed. Here is the order our Shenzhen team works through it.

Before the booking: named port detail

Name the destination port precisely in the sales contract, because CFR leaves the parties arguing about which terminal charges were included in the freight.

We put this in the booking file so the destination broker sees the same version we do.

At handover: prepaid ocean freight

Under CFR the seller pays the ocean freight to the named port, but risk passes to the buyer once the goods are loaded on board at origin.

Timing matters here: the check has to happen while the shipment is still editable in our system.

After arrival: risk at loading

That split surprises buyers: damage during the sea leg is their insurance problem even though the seller arranged and paid for the carriage.

If anything changes at this point, we reissue the file rather than patching it by email.

The failure point we see most often: Buying no cargo insurance because the freight was prepaid by the seller.

Have these ready before filing:

Commercial invoice and packing list with matching values and descriptions.
Classification, origin and any licence references used in the declaration.
Booking reference, transport document and the consignee’s broker contact.

Questions importers ask us

Who is responsible for getting this right on a China-origin shipment?

The shipper supplies accurate product and value data; Hovmar Logistics checks the file before submission and coordinates with the destination broker. We confirm the split in writing at booking.

Can Hovmar review this before the cargo leaves Shenzhen?

Yes. Send the commercial invoice, packing list and intended classification before cutoff and our customs desk will flag gaps while they are still easy to fix.

Where this fits in your shipment

Planning a shipment from Shenzhen?

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Notes from the Hovmar Logistics customs desk in Shenzhen. Confirm current requirements with your licensed broker before filing.