In plain English
The bill of lading names the third party and its billing address. The carrier invoices that party for the freight.
Brokers and 3PLs use it all the time: they book the carrier, the carrier bills the broker, and the broker bills the customer with its own margin.
Why it matters when you ship
It matters because the person who signs the bill of lading may not be the person paying. If the third party does not pay, many carriers can still bill the shipper or consignee, so make sure the third party is reliable and that the paperwork is accurate.
Example
A shipper has a freight broker book an LTL pickup. The bill of lading is marked third party and carries the broker’s billing address. The carrier invoices the broker, who invoices the shipper.
Related terms
Third-party billing: common questions
Who is the third party in third-party billing?
Any company named on the bill of lading to receive the freight bill, commonly a freight broker, a 3PL or the shipper’s parent company.
Cite this page
Cite as: Transportli, “Third-Party Billing in Freight Shipping”, https://transportli.com/glossary/third-party-billing/, updated November 11, 2026.
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