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.
You might also like to read:
- What is Importer of Record in Shipping?
- What is Shipped On Board in Logistics?
- Packing and Packaging in Logistics
- Understanding Transit Time in Shipping
- What is Freight Collect in Shipping?
Disclaimer :
The information on this website is for general purposes only. While efforts are made to ensure accuracy, we make no warranties of any kind regarding completeness, reliability, or suitability. Any reliance you place on such information is at your own risk. We are not liable for any loss or damage arising from the use of this website.
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About Author
Hari Menon is a Freelance writer with close to 20 years of professional experience in Logistics, Warehousing, Supply chain, and Contracts administration. An avid fitness freak, and bibliophile, he loves travelling too.
Disclaimer :
The information on this website is for general purposes only. While efforts are made to ensure accuracy, we make no warranties of any kind regarding completeness, reliability, or suitability. Any reliance you place on such information is at your own risk. We are not liable for any loss or damage arising from the use of this website.
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