Freight to Collect

Freight to Collect is a common term in international trade and transportation, referring to the freight charges incurred during the transportation of goods being paid by the consignee at the destination, rather than prepaid by the shipper. This term is typically used in sea, air, or express services, especially under trade terms such as FOB (Free on Board) or EXW (Ex Works), where the main freight is borne by the buyer. When using Freight to Collect, the shipper must clearly mark 'Freight Collect' on the bill of lading or waybill; otherwise, the carrier may default to freight prepaid. Precautions include: the consignee must pay the freight and related charges before taking delivery, otherwise late fees may be incurred or the goods may not be released; the freight amount may differ from expectations due to exchange rates, fuel surcharges, etc.; furthermore, Freight to Collect is the opposite of Freight Prepaid, with the former borne by the consignee and the latter by the shipper. It is similar to 'Freight Payable at Destination,' but the latter emphasizes the time of payment after the goods arrive, while Freight to Collect emphasizes the responsibility of payment on the consignee. Foreign trade practitioners need to choose correctly based on contracts and trade terms to avoid disputes caused by unclear freight payment methods.