freight

Definition

Charges paid for carriage or transportation of goods (cargo) by air, land, or sea. Goods may be transported (shipped) on freight-prepaid or freight-collect basis: (1) If the freight is paid by the consignor (as under C&F and CIF terms) the goods remain the consignor's property until their delivery is taken by the consignee upon their arrival at the destination, and payment of the consignor's invoice. (2) If freight is paid by the consignee (as under FOB terms) the goods become the consignee's property when handed over to the carrier against a bill of lading. Also called freightage, it may be charged on the weight or volume of the shipment (depending upon its nature or density) and also varies according to the mode of shipment, such as bulk, break bulk, containerized. See also fare.