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What Is a Collect Shipment?

 
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What Is a Collect Shipment?
A collect shipment aims at passing freight charges on to the recipient. These shipments are commonly sent under FOB terms, where the seller agrees to pay costs to move shipments to a port and onto a vessel, but the buyer is in charge for everything else. The terms of shipment are usually described in sale agreements and contracts to make sure every party is aware of expectations. If there are any arguments, this documentation can help resolve the problem.
Under the terms of a collect shipment, the seller has to provide packaging cargo responsibly, in bulk containers that will stand up to shipping, and moving it to a shipping firm. For large shipments the firm requires transport to a port or freight yard. And a small package from a business to a customer could be picked up by a driver on a delivery route.
The seller accepts the costs associated with getting the collect shipment to the shipping firm, and loading it on board. All expenses become the assignment of the buyer. These may include the flat costs associated with shipping as well as any extra payments for insurance, taxes, duties, and various other fees that may arise.
Terminology that is generally used in shipping industry is not internationally consistent. Enterprises may not refer to "collect shipments," and using other terms. Buyers and agents who have certain doubts regarding their responsibilities can request clarification and a detailed discussion of the terms being used.
Once goods are delivered to the client the shipping firmís net billing terms begin to apply to the collect shipment. The customer has a certain period of time - 30 days in order to pay the bill. If there is a dispute, the buyer needs to provide documentation to resolve the issue. This will possibly include proof that a collect shipment arrived damaged or late, supporting a claim that the bill is unreasonable.

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