Understanding CFR Trading in Specialty Green Coffee

CFR — Cost and Freight — is one of the most common Incoterms in international green coffee trade, and for good reason: it gives the buyer a predictable, landed price at their destination port while keeping the seller responsible for freight arrangement up to that point. For distributors, the appeal is straightforward. A CFR price bundles the origin cost and ocean freight into a single figure, simplifying budgeting and reducing the coordination burden of arranging freight independently. The tradeoff is that insurance and import-side costs remain the buyer's responsibility — a distinction worth confirming on every contract. At Atlas Alto, every CFR trade runs through an escrow-secured, tranche-based payment structure. Funds release in stages tied to real milestones — deposit, loading, and final delivery — rather than a single up-front payment. This protects both sides: the seller has confirmed commitment before shipping, and the buyer's funds remain protected until goods are confirmed in transit and delivered. It's a structure built for long-term relationships, not one-off transactions — which is exactly the kind of partnership we look to build with every distributor we work with.