Collect Freight
Collect freight is a payment term in which the consignee pays the carrier's freight charges, as opposed to prepaid freight, where the shipper pays, or third-party billing, where another party pays.
Why it matters for ecommerce brands
Many retailers require suppliers to ship collect using carriers from their routing guide, so the brand controls loading and paperwork but not the carrier choice. The freight terms box on the bill of lading must match the agreement or the bill goes to the wrong party.
Common questions
- What is the difference between prepaid and collect freight?
- With prepaid freight, the shipper pays the carrier and may add the cost to the customer's invoice. With collect freight, the receiver pays the carrier directly. A third-party bill-to sends charges to someone else, such as a brand paying for a supplier's shipment.
Cite this entry
"Collect Freight." Fulfillment Lexicon, last reviewed October 16, 2026. https://fulfillment.wiki/glossary/collect-freight/