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Freight glossary

Prepaid and Add: Meaning in Freight Terms

Prepaid and add (PPD/ADD) is a freight term meaning the shipper pays the carrier up front and then adds the freight charge to the invoice for the goods.

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.

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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