Glossary Freight Prepaid

Freight Prepaid refers to the case where the exporter pays the freight in advance at the port of shipment when exporting under CIF or CFR conditions. When a shipment is made on a freight prepaid basis, the exporter is responsible for arranging the shipping and paying for all of the costs associated with it, including the transportation, handling, and insurance fees. The exporter may choose to pay the freight charges directly to the carrier or may have them added to their account with the carrier. Once the shipment is in transit, the carrier will bill the exporter for any additional charges that may arise, such as storage fees, customs duties, or taxes. The exporter must pay these charges promptly in order to avoid any delays in the delivery of the goods.