Cash on Delivery as a Payment Option
One way for shippers to pay for international freight is through COD, which stands for cash on delivery. This type of payment option involves a consignee who will pay for the shipping services in cash upon the delivery of the freight to the final shipping destination. Shippers who put their faith and trust in their logistics providers may use cash on delivery as their preferred payment option. Cash on delivery is also used in other forms of transportation, but we are looking today at the transportation of ocean freight containers.
When you are using cash on delivery as your payment option, you should notify your freight forwarder as early as you can in the shipping process. That way, your freight forwarder can work with their agents and partners to properly coordinate the process without delays. The carriers must work with dispatchers to inform them about the payment for this shipment.
When dealing with ocean freight shipping, cash on delivery might seem tricky, but it can actually be very manageable. One area to consider for freight forwarders is with the payment. International banking requires some extra planning, especially when dealing with foreign exchanges. A bank check is commonly used at times to avoid any banking dilemmas. For shippers, the cash on delivery information should be on the cargo receipt so that all parties involved can have the details in writing. This will help avoid any confusion that you might encounter. Cash on delivery is one way of payment for your international shipping containers, although other ways also exist.