What does bill-to mean on a bill of lading?

The party that will pay the freight charges. It is the shipper on prepaid terms, the consignee on collect terms, or a named third party.

What is third-party billing in freight?

Billing the freight to someone other than the shipper or consignee — a distributor, a parent company or a freight payment firm. It has to be on the bill of lading at pickup to avoid a rebilling fee.

Who pays if the third party doesn't?

Under US carriers' tariffs, usually the shipper. FedEx Freight's says the consignor guarantees all accrued charges if the third party fails to pay.

Term

Bill-to party

The bill-to party is whoever the bill of lading names to pay the freight charges — the shipper (prepaid), the consignee (collect), or a third party such as a distributor or a freight payment company. If a third party does not pay, US carriers' tariffs usually make the shipper pay instead.

Also called third-party billing, bill to, third-party payor, freight payerApplies in USUpdated 13 October 2026

Three ways to pay

Terms	Who pays	Note
Prepaid	The consignor (shipper)	Charges are due from the consignor
Collect	The consignee	Charges are due from the consignee
Third party	Neither shipper nor consignee	Often a freight payment processor, the "bill-to"

As FedEx Freight's rules tariff defines them

When the third party does not pay

The shipper is the backstop. FedEx Freight's tariff says the consignor guarantees to pay all accrued charges if the third party fails to, and that if the true third party refuses the charges the consignor may be billed without a letter of authority. Old Dominion adds liquidated damages of 35% of an unpaid receivable left 42 days past its due date.

Worked example: billing the wrong party

A shipment moves collect, then the consignee says a third party should pay — and that third party was never on the bill of lading. Each carrier charges to correct the bill: USD 40 at Old Dominion, USD 31.50 at Estes; FedEx Freight charges USD 50 to change the payer or the terms, on a written request it may accept or refuse.

Corrected bill = original freight charges + the rebilling fee (USD 31.50 to USD 50), and the shipper still guarantees payment

In Europe

The CMR consignment note may state the charges the sender undertakes to pay; a consignee who takes delivery must pay the charges shown to be due on it.

The mistake people make

Paying the broker and assuming the carrier is paid. Old Dominion's tariff says payment to a broker shall not be deemed payment received by the carrier — the carrier can still bill the party responsible for its charges.

FAQ

Bill-to party: common questions

What does bill-to mean on a bill of lading?: The party that will pay the freight charges. It is the shipper on prepaid terms, the consignee on collect terms, or a named third party.
What is third-party billing in freight?: Billing the freight to someone other than the shipper or consignee — a distributor, a parent company or a freight payment firm. It has to be on the bill of lading at pickup to avoid a rebilling fee.
Who pays if the third party doesn't?: Under US carriers' tariffs, usually the shipper. FedEx Freight's says the consignor guarantees all accrued charges if the third party fails to pay.