What is Freight Prepaid in Shipping?
Freight pre-payed is a basic delivery term utilized when the vendor or the carrier of items pays the products fees to the delivery line for delivering the items to the customer‘s defined place.
This term is really carefully attached to ‘Free on Board (FOB) Destination, Freight Prepaid’ which implies that the carrier pays all products fees on the freight up until it is supplied to the consumer‘s facilities.
In this instance, the possession and also duty of the items stay with the vendor up until it is supplied to the consumer.
Another term ‘FOB Origin, Freight Prepaid’ is utilized when the possession of the items hands down to the consumer at the factor of beginning, when it is offered to the provider for transportation and also products fees have actually been paid.
The term ‘FOB’ is therefore utilized to define the factor at which the possession passes from the vendor to the consumer.
The term ‘Cost, Insurance, Freight’ (CIF) is likewise a products pre paid setup where the vendor pays, insurance policy, and also products of the items.
