Prepaid Freight
Prepaid freight is a payment made by the shipper to the carrier when merchandise is tendered for shipment. This payment is not refundable if the merchandise does not arrive at the intended destination.
- Prepaid freight allows carriers to cover their costs upfront, and helps to ensure that they will receive compensation for their services even if the shipment is not delivered as expected.
- This type of arrangement also benefits shippers by guaranteeing space on a carrier’s vehicle and ensuring that their goods will be shipped in a timely manner.
- In some cases, prepaid freight may also result in lower shipping rates.
If you are shipping goods, be sure to ask your carrier if they offer prepaid freight services. This can be a great way to save money on your shipping costs and ensure that your goods arrive safely at their destination.
Related Links
What is freight prepaid?
Payment terms: What’s the difference between “prepaid” and “collect?” – The Clerk Files
Freight Prepaid
What is Freight prepaid? Definition and meaning
Related Videos
Shipping Prepaid vs Collect
5 - Freight Costs
-
Shipping Prepaid vs Collect
-
5 - Freight Costs