FREIGHT BILLING RESPONSIBILITY
Prepaid Freight
Freight prepaid generally identifies a billing arrangement in which freight charges are assigned to the shipping side under the applicable transport terms. The actual invoice and payment timing depend on the agreement.
PREPAID FREIGHT IN PRACTICE
- Identify the payerConfirm the carrier’s billing instruction.
- Define the chargesCheck the included legs and supplements.
- Reconcile the invoiceReview payment terms and references.
Use the agreed units, actual records and approved procedures for your operation.
A WORKED EXAMPLE
Prepaid can still be billed under credit terms.
A shipment is instructed as prepaid to the sender’s account. The parties review the carrier’s invoice terms separately from the document label and the buyer’s sale agreement.
WHAT THIS MEANS FOR YOUR QUOTE
Agree the requirement before comparing quotes
Use the actual shipment, stock and service requirements. Record the billing unit, included work and responsibility for exceptions.
A LITTLE MORE CONTEXT
Questions about Prepaid Freight
Does prepaid always mean cash paid before shipment?
No.
Does it settle ownership or transit risk?
No.
Should destination charges be checked separately?
Yes.
Source & example notes
FedEx: sender/prepaid billing terminology, developer guide.
Sources provide background on the linked topic. Product documentation describes a particular implementation; confirm the rules, contract and procedures that apply to your operation.
Quantities, costs and scenarios are illustrative, not operating targets, approved handling instructions or guarantees. Source guidance reviewed 23 October 2026.
Last updated: · 3PL Hub
