What does C.O.D. stand for in freight terms?

What does C.O.D. stand for in freight terms?

• A. Cash on Delivery
• B. Freight Collect C.O.D.—collect our own service fees
• C. Appointment
• D. Attempt

Answer: (A)

COD in freight terms is a payment method where the buyer pays for the goods (and often the shipping charges) at the moment the shipment is delivered. The phrase Cash on Delivery is the exact description of this arrangement: the carrier collects the payment from the recipient and then forwards it to the seller. This is used when the seller wants to ensure payment is made at delivery or when the buyer prefers to pay only when receiving the goods. The other phrases don’t describe a delivery-time payment arrangement, and “appointment” or “attempt” are unrelated to payment terms.

COD in freight terms is a payment method where the buyer pays for the goods (and often the shipping charges) at the moment the shipment is delivered. The phrase Cash on Delivery is the exact description of this arrangement: the carrier collects the payment from the recipient and then forwards it to the seller. This is used when the seller wants to ensure payment is made at delivery or when the buyer prefers to pay only when receiving the goods. The other phrases don’t describe a delivery-time payment arrangement, and “appointment” or “attempt” are unrelated to payment terms.