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: Maritime Law by Hari Menon
Related News
16/12/2021 3291 Views
Fourth Party Logistics, known as 4PL in the industry, is a model of logistics which directs every moving part within the customer's supply chain
18/09/2023 1861 Views
The modern-day shipping container is undoubtedly one of the most useful inventions of our time. From the days of hand-loading and unloading cargo boxes and items of different sizes and shapes, we have come a long way. From ordinary corrugated steel containers of the 1950s – 70s, today, we use containers made of high-quality Corten steel.
06/04/2021 2537 Views
When shipping products internationally, many things need to be considered; procedures are far more complex than for local shipments. There are a lot of additional custom regulations that should be followed and a huge amount of paperwork that needs to be sorted out. Moreover, you also need to consider the shipment costs and time it will take for the shipment to reach different destinations.
main.comment_read_more