Definition
Guidelines specifying who handles shipping costs, responsibilities, and risks during delivery or pickup.
What are Freight Terms?
Freight terms define how transport costs are divided between seller and buyer. In rental operations, this is crucial when assets are delivered to job sites or returned to depots.
Common Types
- FOB (Free on Board): Seller bears transport cost until items reach the agreed destination.
- Prepaid & Add: Seller prepays freight but adds it to the invoice.
- No Charge: The customer pays nothing for shipping.
Why It Matters in Rentals
Incorrect freight term setup can cause revenue leakage or customer disputes. Properly defining it ensures transparency and consistent billing.