Freight Collect

Freight Collect is a payment method in international cargo transportation where the freight charges are paid by the consignee at the destination upon picking up the goods, rather than being prepaid by the shipper. This term is commonly used in sea freight, air freight, and international express, especially marked as 'Freight Collect' on ocean bills of lading. It is typically used when the buyer arranges transportation or when both parties agree on freight collect, such as under FOB, EXW, etc., where the buyer usually bears the freight. Note: Freight collect may incur additional handling fees, and if the consignee refuses to pay, the carrier may seek reimbursement from the shipper; moreover, some countries require freight collect to be clearly stated on the bill of lading, otherwise it may affect cargo release. The difference from 'Freight Prepaid' lies in the responsible party and timing of payment: prepaid is paid by the shipper at the port of loading, while collect is paid by the consignee at the port of destination. Foreign trade practitioners need to specify the freight payment method in the contract to avoid disputes or extra costs due to unclear payment responsibilities.