Freight prepaid

Freight prepaid means the shipper pays the ocean freight at origin, and the bill of lading is marked prepaid before the cargo moves. The consignee receives the goods without owing freight to the carrier, which suits Incoterms where the seller bears the main carriage, such as CIF, CFR, and CPT. Under a prepaid bill the carrier looks to the shipper for payment, so an original bill is often released only against settlement. The opposite term is freight collect, where the consignee pays the freight at destination and the carrier withholds release of the cargo until it is paid.