What is freight prepaid vs freight collect and how does it affect the freight charge?

Freight prepaid means the seller pays the carrier at origin before the goods depart — under CIF, CPT, DAP, and DDP Incoterms, the freight charge is the seller's responsibility and is typically built into the product price. Freight collect means the buyer pays the carrier directly when the goods arrive — under EXW, FCA, and FOB Incoterms, the freight charge falls to the buyer. The charge amount is the same either way — the Incoterm determines who pays it and when, not what it contains or how it is calculated.