Our glossary simplifies common industry terms in freight and logistics into clear, easy-to-understand explanations.
Carriage Paid To Freight Prepaid means the exporter or shipper pays all freight charges upon shipment. This payment method is commonly found in international trade contracts, particularly when the seller assumes transportation responsibilities. Freight Prepaid protects the carrier's interests and prevents shipments from being held or delayed due to the consignee's refusal to pay. In practice, freight prepaid must be clearly marked "Freight Prepaid" on the bill of lading and reflected in the commercial invoice and settlement statement. For the importer, although the freight is paid by the exporter, the final cost is typically included in the price of the goods. Therefore, before signing a contract, companies must clearly understand the freight bearer and payment terms to avoid disputes and control overall trade costs.
Subscribe to our newsletter to be the first to get the latest logistics trends, professional insights and exclusive offers. Never miss an opportunity to improve efficiency and optimize costs.
