Freight Prepaid

Category: Logistics

Also searched as: Freight Prepaid

Definition (plain English)

A freight-payment term showing the freight was paid or arranged by the shipper or origin-side party before release.

Why it matters commercially

Prepaid freight can simplify release but still may exclude destination charges, customs, storage, and inland delivery.

Example

A CIF shipment showed freight prepaid on the bill of lading, but the importer still paid destination THC and delivery fees.

Common mistake

Reading freight prepaid as all-inclusive delivered cost without checking local charges and Incoterm scope.

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