Quick Question Monday : Understanding Shipping Terms In Your Price Quote

When reviewing a quote for your packaging project, you may notice references to something called the shipping terms, and often they contain abbreviations that means different things to the different parties involved. So what do all of those abbreviations mean? Prepaid, Collect, CPU? Let's review them here.

Collect: Customer uses a carrier that they directly contract and the carrier bills the customer for freight charges. The seller is responsible for alerting the customer when the order is ready to be picked up, and it is the responsibility of the customer to arrange with the carrier the pick-up time and transit time.

CPU: Customer Pickup, the Customer comes in and picks up the order using their own equipment. The seller commonly provides pickup hours for the equipment to arrive and pickup the load.

Prepaid & Allow: Freight Charges are prepaid by the seller and not billed to the customer. Seller will arrange pickup and work with the buyer on a delivery timeline via the carrier.

PPD/ADD: Pre-paid and Add to the invoice - the seller will contract and pre-pay the delivery cost to the carrier and then invoice the customer for the expense. Seller will work with carrier for pick-up and notify the customer the estimated delivery date via the carrier.

Third Party Bill: Freight charges are paid by a party other than the shipper or buyer - very often this would be paid by your contract filler.

Avoid Misunderstanding

As in many scenarios, the exact definition may differ from seller to seller. You would want to have a common understanding with your distributor in advance prior to signing the quote or contract. If you are an O.Berk customer and have questions regarding the shipping terms in your quote, please contact your account executive.


Posted by Sam
on Mon, August 31, 2015

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