Freight Prepayable

Freight Prepayable in International Trade

Meaning of Freight Prepayable, according to the Dictionary of International Trade (Global Negotiator): Terminology designed by carriers to provide transportation documentation indicating the freight charges are for the account of the shipper, while no stating that payment has actually been received. This situation usually arises with letters of credit requiring freight-prepaid transport documents. Freight prepayable, freight to be prepaid, or similar terms does not satisfy such a requirement unless specifically permitted by the individual letter of credit. Also called freight to be prepaid.