What does freight prepaid mean?

• A. Freight prepaid means the seller pays the freight.
• B. Freight prepaid means the buyer pays freight upon delivery.
• C. Freight prepaid means the carrier pays freight.
• D. Freight prepaid means freight charges are waived.

Answer: (A)

Freight prepaid is about who covers the transportation cost. When freight is prepaid, the seller pays the freight charges to move the goods to the destination, so the buyer does not owe any shipping cost at delivery. This is different from freight collect, where the buyer would pay the freight when the goods arrive or are delivered. The carrier doesn’t decide who pays; the contract between seller and carrier determines who is responsible. Freight charges being waived would mean there’s no charge at all, which is not what prepaid implies.