What Is The Meaning Of Freight Collect In Shipping Terms?

If you are used to sending parcels internationally you may be familiar with the phrase 'Freight Collect' where you send parcels to your customer and they pay the cost of carriage. In the world of freight, the terms that determine who is responsible and pays for each part of the journey are officially set out and are called ‘Terms of sale’ or ‘Incoterms’. Phrases ‘Freight prepaid’ or ‘freight collect’ just don’t cut it and should not be used for air freight or sea freight.