What does PrePay and Add mean in Freight Terms?

In freight terms, "PrePay" refers to the arrangement where the shipper pays for transportation costs before the shipment is dispatched. This typically ensures that the carrier is compensated upfront, reducing the risk of payment issues. "Add" generally means additional charges or fees that may be applied to the base shipping cost, such as for fuel surcharges or handling fees. Together, these terms help clarify the financial responsibilities involved in the shipping process.