Different Types of Freight Shipping and Charges

In today’s global economy, companies can stand a lot to gain by doing business with companies that are established outside of the U.S. If this is the case for your business, you should know what the costs will be for shipping. If you’re sending goods and products overseas or across the country, it’s essential that you’re familiar with several documents and charges that are associated with shipping. When you know what needs to be filled out and which shipping charges you’re responsible for, so that the shipping process will go smoothly. It’s also best to keep all the documents associated with freight shipping so that you can refer to them if there are any mishaps with your packages. Here are some of the bills and charges you should be aware of.

Freight Bill and Bills of Lading

All freight shipping companies will give clients two documents that are crucial to the shipping process – the freight bill and the bill of landing. The freight bill is basically an invoice and helps you keep a record of your payments. The bill of lading is a legal document and are even used in a court of law. It shows the number of items that are being shipped and the names of these items. A bill of lading reflects the value, weight and detailed description of each item. The document should also include details about when the products are supposed to be shipped and when they should be delivered to their destination. Bills of lading is a contractual agreement between yourself and the shipper.

Charges and components to a bill of lading or freight bill includes the consignee, which is the customer were the goods should be delivered. The consignee is required to pay all the necessary freight charges once they receive the item. This consignee is also responsible for filing applicable taxes and forms and customs declarations.

The Prepay and Add Option

In this arrangement, the shipper is responsible for paying for freight. Then, the shipper charges the customer to recover the funds. This is an ideal option when the shipper and the carrier have an established business relationship – usually the rates will be better in an arrangement like this, because if you use a shipping company often, your rates will likely be lower than if you only ship items once in a while.

Third Party Option

For this arrangement, a logistics company covers all the freight charges instead of the consignee and shipper taking on this responsibility. If the consignee is ordering the goods for the first time or the order is particularly intricate, this is a viable option.


COD, or cash on delivery, means that the carrier gets payment from the customer once the item is delivered and forwards the payment to the shipper. The shipper then reimburses the carrier. Most of the time, the carrier will charge a fee on top of the price the carrier pays for this service.

Be sure that you know what your choices are when you need to know how to pay for freight shipping so you can prepare your items accordingly. You should also research the companies you want to use and know their policies before making your final choice.

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Teresa Sabo

Teresa Sabo