Freight Paid

Freight Paid is a common freight payment term in international trade, meaning the seller or shipper has paid the full freight at the place of shipment or a designated location, and the carrier will not collect freight from the consignee. It is usually contrasted with Freight Collect and is commonly found in trade terms such as CIF, CFR, CPT, and CIP where the seller bears the freight. When using this term, note: 1) It only indicates that freight has been paid and does not involve the transfer of cargo risk; risk allocation still depends on the trade term (e.g., under CIF, risk transfers at the port of shipment); 2) In letter of credit transactions, banks may require a transport document marked 'Freight Paid' to prove the seller has fulfilled the payment obligation; 3) If payment is not actually made or is made incorrectly, the carrier may seek freight from the consignee, causing disputes. It is basically synonymous with 'Freight Prepaid,' but 'Freight Paid' emphasizes the fact of payment. Foreign trade practitioners should ensure that documents such as bills of lading are accurately marked and consistent with the contract and letter of credit terms to avoid affecting settlement or cargo delivery due to freight payment issues.