The expression “Freight Collect” is mainly used in air and water transportation, and establishes the consignee of the goods as that party who is to bear the costs for the main transportation run. The term is in close connection with the delivery clause, since this clause establishes which party in the commercial interest is to bear the costs for transportation. The term “Freight Collect” corresponds to the terms Incoterms EXW or FOB, since with these headwords the freight costs must be collected from the consignee of the goods.

Also associated with the assumption of costs for transportation is usually the choice of mode of transport, service as well as carrier or forwarder. These criteria naturally also have a direct impact on the delivery time and quality of delivery of the shipment, so that in tandem with the financing of transportation also goes about the components of power and decisions. The opposite of “Freight Collect” is “Freight Prepaid.”.

RELATED TERMS

• Freight Prepaid

• Cost transition point

• Incoterms