What does freight collect mean?

• A. Freight collect means the buyer pays freight upon delivery or pickup.
• B. Freight collect means the seller pays freight in advance.
• C. Freight collect means freight is included in the product price.
• D. Freight collect means no freight charges apply.

Answer: (A)

Freight collect means the party receiving the goods is responsible for paying the freight charges at the time of delivery or pickup. In practice, the carrier collects the freight charges from the consignee when the goods are delivered or when they pick up at the terminal. This shifts the cost to the buyer, unlike freight prepaid (seller pays in advance), freight included (freight is built into the price), or no freight charges (free shipping).