In plain English
From the carrier’s point of view, it is a prepaid shipment: the shipper is billed. From the seller’s point of view, the buyer ends up paying, because the freight shows as a separate line on the invoice.
It is common in wholesale and distribution, where the seller has a good freight rate and wants to pass the real cost on without marking it up.
Why it matters when you ship
Prepaid and add gives the buyer a clear freight line and lets the seller use its own carrier contract. It differs from simply prepaid, where the freight may be buried in the price, and from collect, where the buyer deals with the carrier directly.
Example
A distributor invoices $1,200 for goods and adds $85 freight on a second line. On the bill of lading the shipment is marked prepaid, so the carrier bills the distributor.
Related terms
Prepaid and add: common questions
What does PPD/ADD mean?
Prepaid and add. The shipper pays the carrier, then adds the freight cost to the buyer’s invoice.
How is prepaid and add different from prepaid?
In both cases the carrier bills the shipper. With prepaid and add the freight appears as an extra charge on the buyer’s invoice.
Cite this page
Cite as: Transportli, “Prepaid and Add: Meaning in Freight Terms”, https://transportli.com/glossary/prepaid-and-add/, updated November 11, 2026.
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