Bill of lading field
What does COD mean on a bill of lading?
COD means collect on delivery. Fill this in and the driver will not hand over the freight until the consignee pays that exact amount. It is an instruction to the carrier to collect money, not a note about your payment terms.
Why it matters
It turns the carrier into your collections agent for one delivery. That is a real service, and carriers charge a fee for it and require it to be set up in advance.
The mistake that costs money
Typing your invoice total in here as a reminder. The driver will then refuse to unload until somebody at the receiving dock produces that sum, which is how a routine delivery becomes a refused shipment and a return charge.
Worth knowing
- Leave it blank unless you have genuinely arranged a COD shipment with the carrier.
- COD is not the same as freight collect. Freight collect is about who pays the shipping; COD is about paying for the goods.
- Carriers charge a COD fee and usually cap the amount they will collect.
- Specify the acceptable form of payment with the carrier in advance — many will not take a company cheque.