Freight Collect (sometimes known as Cash on Delivery, or COD) is something you might encounter during your time shipping LTL. But what is “freight collect?” Do you want it? Need it? That’s what we’re going to discuss in today’s blog.
What is “Freight Collect?”
Freight Collect is when the driver, at the time of delivery, takes cash from the consignee. The amount of cash that changes hands can vary between hundreds of dollars for the full price of the shipment, or smaller amounts for additional services such as liftgates or residential delivery.
Though this is a practice in freight shipping, this cash on delivery should always be noted on the proof of delivery. If you’re using a freight broker, it’s very unlikely that you’ll need to worry about cash on delivery.
With FreightPros for instance, we NEVER instruct our customers to give the freight carriers any cash at pickup or delivery.
If you’re going to participate in cash on delivery, or freight collect (same thing, different name) make sure that the consignee is aware of the arrangement, and knows exactly how much money will be due upon delivery.
Additional charges can sometime change the amount the carrier will require at time of delivery, but it’s important to confirm the final charges with the carrier, and to get the correct delivery receipt when the freight is dropped off.
As noted above, here at FreightPros we do not deal with cash on delivery and freight collect. We handle our customers freight invoices directly, and cash on delivery makes it nearly impossible for the consignees to get reimbursed in the case of incorrect charges, or invoice discrepancies.
If you’re going to set up cash on delivery, make sure the shipper, consignee, and carrier are on the same page. Freight Collect doesn’t have to be a mess, but make sure you know what you’re paying for, and who you’re paying it too. Remember, it’s a cash transaction, so it’s important to get receipts for services rendered.
When it comes to LTL shipping, you’re going to want to get receipts most of the time anything. It’s a great habit to get into, especially if you’re dealing with cash on pickup or delivery.