Pricing & Surcharges
Freight Collect
A payment term where the consignee pays the freight charges at destination, before the cargo is released.
In depth
Under freight collect the buyer settles the carriage on arrival, which fits Incoterms where the buyer arranges main carriage — EXW, FCA, FAS, FOB. The cargo will not be released until payment is made, so the charges become a precondition of collection alongside customs clearance. The risk sits with the carrier and, indirectly, the shipper: if the consignee refuses the shipment or fails to pay, the cargo sits accruing demurrage and the shipper may end up responsible for it.
Key points
- Consignee pays freight at destination before release
- Fits buyer-arranges-carriage Incoterms such as FOB and FCA
- Payment is a precondition of obtaining the delivery order
- Shipper may bear the fallout if the consignee refuses the cargo