Freight collect

Freight collect means the ocean freight is payable by the consignee at destination, not by the shipper at origin. The bill of lading is marked freight collect, and the carrier releases the cargo only once the consignee settles the freight, giving the carrier leverage to collect. It aligns with Incoterms where the buyer bears the main carriage, such as FOB and FCA, under which the seller hands over at origin and the buyer arranges and pays the sea leg. The opposite term is freight prepaid, where the shipper pays at origin and the bill is so marked before the cargo moves.