There are charges that are paid by a party on behalf of the shipper or consignee, often abbreviated as SFB (Shipper/Consignee Freight Collect/Prepaid). This means that a third party, such as a freight forwarder or a customs broker, pays the freight charges on behalf of the shipper or consignee, and then bills them for the charges. This option is often used when the shipper or consignee does not want to handle the freight charges themselves or does not have the necessary credit or funds to pay the charges upfront.
In summary, now you know the different terms used when referring to the payment of freight charges, such as prepaid, collect, and SFB. Knowing these terms will help you understand the different options available and make informed decisions when it comes to shipping and transportation of goods. It's essential to review and understand the agreement before entering into any trade and to discuss the terms with the carrier.