Who should pay the freight charges?

Who should pay the freight charges?

FOB freight collect specifies that the buyer must pay the freight transportation charges when the buyer receives the goods. However, the seller assumes the risk associated with transporting the goods because the seller still owns the goods during transit.

Who is responsible for the freight cost when the terms are FOB destination?

When it comes to the FOB shipping point option, the seller assumes the transport costs and fees until the goods reach the port of origin. Once the goods are on the ship, the buyer is financially responsible for all costs associated with transport as well as customs, taxes, and other fees.

Who pays shipper or consignee?

The consignee is liable if the bill of lading is marked “collect”; The shipper/consignor and the consignee are jointly liable unless the provisions of 1, 2 or 3 apply; The default rules can be modified by contract and only apply if the parties have not agreed to an alternative arrangement.

Who is liable to pay the freight if it is prepaid?

If freight prepaid is specified, it mean that the shipper or the consignor is responsible for the freight. The opposite of Freight prepaid is “freight collect,” that specifies that the consignee or the receiver is responsible for the freight.

Who is responsible shipping?

The party responsible for shipping the goods is the ‘shipper’ or ‘consignor’. This would usually be the seller. The ‘consignee’ is usually the buyer and is the person named as consignee in the bill of lading.

When freight becomes payable and by who is it payable?

Freight expense refers to the price that is charged by a carrier for sending out cargo from the source location to the destination location. The expense is paid by the person who wants the goods transported from one location to another.