Who Pays for Freight Shipping?

The party responsible for paying freight shipping costs can vary depending on the agreed terms between the buyer and seller. In commercial transactions, shipping terms like Free On Board (FOB), Cost, Insurance, and Freight (CIF), and Delivered Duty Paid (DDP) define who bears the shipping costs. For example, under FOB, the seller is responsible for transportation costs to the shipping point, after which the buyer pays for the main carriage. In CIF, the seller covers costs, including insurance and freight to the destination port. In consumer shipping, typically, the seller or the online platform includes shipping costs in the product price or charges it separately at checkout. In B2B transactions, the party responsible for shipping costs is often determined by the contract or agreement.