There seems to be a lot of confusion about the difference between “prepaid” and “collect” freight charges, and also “collect” vs. “C.O.D.” Here’s a rundown of terminology:
| Charge | Description |
|---|---|
| Prepaid: | Freight charges will be paid by the shipper. Abbreviation: PPD |
| Collect: | Freight charges will be paid by the consignee. Abbreviation: COL |
| C.O.D: | Refers to payment for MERCHANDISE and not freight charges. Cash (or Check) On Delivery is a service that the carrier provides for the shipper by collecting payment for goods and sending it back to the shipper. This is entirely separate from freight charges. |
| Third Party Bill : | Freight charges paid by a party other than the shipper or consignee. Abbreviation: TPB |
| Send Freight Bill : | Freight charges paid by a party related to either the shipper or consignee. Abbreviation: SFB |
Freight charges can be either collect or prepaid, depending on the relationship between the paying party and the shipper or consignee. If charges are TPB, it may or may not make a difference and could affect the discount depending on the paying party's tariff. It's important to check with your carrier's sales representative and mark the Bill of Lading correctly to avoid additional charges.