What is Freight Prepaid in Shipping?

Freight prepaid is a general shipping term used when the seller or the shipper of goods pays the freight charges to the shipping line for transporting the goods to the buyer’s specified location.

This term is very closely connected to ‘Free on Board (FOB) Destination, Freight Prepaid’ which means that the shipper pays all freight charges on the cargo until it is delivered to the customer’s premises.

In this case, the ownership and responsibility of the goods remain with the seller until it is delivered to the customer.

Another term ‘FOB Origin, Freight Prepaid’ is used when the ownership of the goods passes on to the customer at the point of origin, when it is given to the carrier for transport and freight charges have been paid.

The term ‘FOB’ is thus used to specify the point at which the ownership passes from the seller to the customer.

The term ‘Cost, Insurance, Freight’ (CIF) is also a freight prepaid arrangement where the seller bears the cost, insurance, and freight of the goods.

Source: Marine Insight


Related News

Who is a “Multimodal Transport Operator”?
Who is a “Multimodal Transport Operator”?

Global exports over the last 3 years stand at an average of 18 trillion US Dollars. Businesses across the world deliver goods to their customers – both national as well as international, by various modes of transport. Good are transported over the road by trucks, by rail on freight trains, ocean freight on cargo ships, and by air on cargo flights.

What is Switch Bill of Lading?
What is Switch Bill of Lading?

When we talk about shipping documentation, the first thing that comes to many people’s minds is the bill of lading. A typical bill of lading is a document that confirms the receipt of goods by the shipping company from a shipper, for transport. It also serves the purpose of proving the ownership of the cargo.

Key Performance Indicators (KPI) in Logistics
Key Performance Indicators (KPI) in Logistics

How do corporate executives and company managers decide upon their organization’s achievements? An informed and well-balanced decision-making is crucial for each company as it moves towards its strategic, operational, and financial goals. Without measuring its progress and comparing it with those of similar organizations, any organization would lose its focus and soon lose out to competitors.


main.add_cart_success