Pricing & Surcharges
Freight Prepaid
A payment term where the shipper pays the freight charges at origin, before or at the time of shipment.
In depth
Freight prepaid means the shipper settles the main carriage, and the bill of lading is marked accordingly. It aligns with Incoterms where the seller pays carriage — CFR, CIF, CPT, CIP, DAP, DPU, DDP — and it gives the seller control over carrier selection and service level. It also matters for document release: carriers will generally not release a prepaid bill of lading until the freight is paid, so an unpaid prepaid shipment stalls at origin rather than at destination.
Key points
- Shipper pays the main carriage at origin
- Aligns with seller-pays Incoterms such as CIF, CPT, and DAP
- Gives the seller control of carrier and service selection
- Bill of lading is generally withheld until freight is paid