Pacejet

Freight Term Guidelines

Overview

Freight Terms determine who will pay for various shipping costs during a transportation transaction and are generally not standard across carriers. This document reviews the specific definition of each of the Freight Terms and behavior within Pacejet when using varying Freight Terms.


Definition of Freight Terms

Freight Terms are defined in the Shipment Details section of the Pacejet Rate & Ship page and can be imported from the ERP system. Pacejet has partnerships with many unique carriers, for which different Freight Terms are accepted.

  • Prepaid: Consignor will prepay the freight.

      • Account numbers are taken from the registration process completed in Pacejet.

  • Prepaid and Charge: Consignor will prepay the freight, and the shipping charges will be billed to the Consignee.

      • Note: Prepaid and Charge are not advisable with UPS Mail Innovations services.

  • Third-Party Billing: Freight is paid by a third party.

      • Third-party account information is required.

  • Collect: The carrier collects the transportation charges from the Consignee.

      • FedEx, the account number is not necessary.

        • This means the carrier will be trying to collect from the SHIP TO address.

        • If the account number IS KNOWN, you should be using Third Party.

      • UPS requires the Consignee account number.

        • If the account number is unknown, UPS will require ‘Consignee Billed’ to be used.

      • Note: FedEx only supports collect for FedEx Ground. This term will NOT work for FedEx Freight and will error.

  • Bill Recipient: The carrier collects the transportation charges from the Consignee’s account.

      • Used by FedEx Freight

      • Account information is required.

  • Consignee Billed: The carrier bills the transportation charges to the Consignee.

      • Used by UPS

      • Account information is not required.

Freight Terms Guide

The chart below is designed to assist shippers in the Freight Terms selection process. This is a freight term "guide"; therefore, Descartes and Pacejet are not to be held responsible for carrier misappropriation of freight charges.

It is required that shippers confirm the proper use of Freight Terms with their carrier.

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FAQs

  • Can I add to or change the Freight Terms in Pacejet?

Pacejet has a default set of Freight Terms and this cannot be customized to add any new freight terms or alter the existing freight terms.

  • Does USPS offer Third Party/Collect Options?

USPS considers all shipments as paid by the Consignor and there are no options for Third-Party Billing or Collect billing.

  • What terms for Consignee payment do not require an account number?

FedEx uses the term ‘Collect’ to process shipments where an account number is not required, and fees will be collected from the Consignee. UPS uses the term ‘Consignee Billed’ to process shipments where an account number is not required, and fees will be collected from the Consignee.

  • What terms for Consignee payment require an account number?

FedEx uses the term ‘Bill Recipient’ to process shipments where an account number is required, and fees will be collected from the Consignee. UPS uses the term ‘Collect’ to process shipments where an account number is required, and fees will be collected from the Consignee.