The cost of transporting goods from the seller's warehouse to the buyer's warehouse or store. Prepaid usually means freight costs are paid by the seller who forwards no bill to the customer. Full Freight Allowed usually means that the seller will ultimately pay freight costs; however the seller may ship goods collect and require the buyer to pay the freight bill. The buyer may then either invoice the seller or deduct the freight charges from the remittance to the seller for goods received. FOB (Free on Board) specifies payment of freight charges one of two ways. FOB Destination means a shipment is moved free on board to a destination; theer pays the freight. FOB Factory (the point of ori-gin) means a shipment is loaded free on board at the point of origin; the buyer pays for the freight. Collect on Delivery (COD) means the buyer pays for the freight at the time of receipt.