Freight Collect

Definition

A billing arrangement where the transportation charges are paid by the consignee (recipient) upon delivery, rather than by the shipper at origin. The AWB is marked "CC" (Charges Collect) in the billing section. Freight Collect is less common in time-critical logistics because most OBC/NFO providers require prepayment — the logistics provider books and pays for the flight upfront. However, Collect terms may be used in established client relationships where billing is consolidated on a monthly invoice cycle.