Inland Freight

Inland Freight refers to the costs incurred during the inland transportation of goods within the country of origin or destination. It typically covers the costs of road, rail, and inland waterway transport from the factory to the port of shipment, from the port of discharge to the destination warehouse, or between the two countries via land routes. In foreign trade quotations, if terms such as FCA, CPT, CIP, DAP, or DDP are adopted, inland freight may be borne by the seller; if terms such as FOB, CFR, or CIF are adopted, the inland segment costs after the port of shipment are usually borne by the buyer. When using this term, the following should be noted: 1) Clearly define the origin and destination of transportation to avoid confusion with "inland transport surcharge"; 2) Distinguish "inland freight" from "international freight," as the former does not include international segment costs such as ocean freight or air freight; 3) In letter of credit settlements, if a freight prepaid certificate is required, it is necessary to confirm whether inland freight has been included in the documents. Unlike "port charges," inland freight refers only to transportation costs and does not include additional charges such as loading/unloading and warehousing. Foreign trade practitioners should clearly stipulate in the contract the responsible party for inland freight and the calculation method to prevent disputes.