In plain English
On the bill of lading, collect is the opposite of prepaid. The carrier bills the consignee, often with a copy of the bill of lading or at delivery, and the consignee’s account is used for the charges.
Many carriers will only deliver collect shipments if the consignee has an account or has agreed in advance. If the consignee refuses to pay, the carrier can bill the shipper instead, because the shipper signed the contract.
Why it matters when you ship
Collect is common when a buyer has its own freight contract and wants to use it. It keeps the freight cost off the seller’s books but leaves the seller exposed to unpaid charges if the buyer does not pay.
Before shipping collect, confirm that the receiver accepts it and give the carrier the receiver’s billing details.
Example
A buyer with a negotiated LTL rate asks its supplier to ship collect on the buyer’s account. The supplier marks the bill of lading collect and the carrier invoices the buyer.
Related terms
Freight collect: common questions
What does freight collect mean?
The receiver, not the shipper, pays the carrier for the shipment.
Can the shipper still be billed on a collect shipment?
Yes. If the receiver does not pay, carriers may bill the shipper, because the shipper contracted the move.
Cite this page
Cite as: Transportli, “Freight Collect Meaning in Shipping”, https://transportli.com/glossary/freight-collect/, updated November 11, 2026.
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