Franking

In the transport and logistics industry, franking determines who bears the costs of transporting a shipment. It is part of the transport contract concluded between the customer and the carrier before the goods are dispatched.

There are basically two types of franking:

1. If a consignment is “carriage forward”, the recipient must pay the transport costs. Franking “carriage forward” means the recipient of the goods must take care of the transport.
2. If a consignment is described as “postpaid” or “free”, this means that the sender pays the freight costs.

In practice, there are often other costs to be regulated such as the assumption of insurance, costs for any necessary documents and certificates, and the transfer of risk of the goods.