What is a Prepaid Freight?

Prepaid freight refers to the shipping term where the shipper pays the cost of transportation before the goods are shipped. This includes all transportation charges and fees. The term is used in logistics to describe the payment method for shipping goods.

In this arrangement, the shipper is responsible for arranging the transportation and paying all the necessary fees and charges. Once the shipment is picked up, the shipper cannot add additional charges to the prepaid freight. The term is often used in contrast to “collect freight”, where the recipient of the goods pays the shipping charges upon delivery.