CargoWise ERP Glossary - Key Terms & FAQs

Our CargoWise ERP Glossary Terms provide clear, concise definitions of key terms used in CargoWise, helping users navigate the system with confidence. Along with these definitions, we've included in-depth FAQs to clarify complex concepts, ensuring you get the most out of your CargoWise solutions.

Prepaid Freight Charges

Last updated: July 29, 2025
Logistics CargoWise
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Prepaid freight charges are shipping fees that are paid in advance by the sender rather than collected from the recipient upon delivery. This strategy is often used in international shipping to ensure that all transportation costs are paid before the cargo arrives at its destination. Prepaid freight charges often cover the cost of the primary shipment route, which includes transportation, processing, and other associated costs.

CargoWise simplifies the handling of prepaid freight charges, allowing for complete visibility into shipment expenses. This feature instantly updates the sender’s accounting system when prepaid costs are completed, providing for better financial planning and control. It also helps to minimize shipping cost disputes between the sender and the receiver because the charges are established and paid in advance. Companies that handle prepaid freight costs with CargoWise can better manage their freight bills and maintain more accurate financial records.

Frequently Asked Questions

What are prepaid freight charges?

Prepaid freight charges are shipment fees that the sender pays ahead of time. These fees cover the cost of getting products to their destination, including handling and other logistical services.

What is the difference between prepaid freight charges and collect charges?

Prepaid freight charges are paid by the sender before shipment, whereas collect charges are paid by the receiver upon delivery. Prepaid charges provide clarity and prevent disagreements over delivery expenses.

Can prepaid freight costs be used for both domestic and foreign shipments?

Yes, prepaid freight costs can be used for domestic as well as international shipments, subject to the terms agreed upon by the sender and receiver.

How does CargoWise deal with prepaid freight charges?

CargoWise automates the computation and tracking of prepaid freight charges, ensuring that all charges are precisely recorded and conveniently accessible for financial reporting purposes.

What are the advantages of using prepaid freight charges?

The primary advantages of employing prepaid freight charges include improved cost visibility, simplified bookkeeping, and fewer shipping price conflicts between the sender and receiver.