INCOMING FREIGHT Clause Samples

The INCOMING FREIGHT clause defines how the costs and responsibilities for transporting goods to the buyer’s location are handled in a contract. Typically, it specifies whether the seller or buyer is responsible for paying shipping charges, arranging transportation, and managing the risk of loss during transit. For example, the clause may state that the seller covers all freight costs up to the buyer’s warehouse, or that the buyer must reimburse the seller for shipping expenses. Its core practical function is to allocate financial responsibility and risk for delivery, ensuring both parties understand their obligations regarding the movement of goods.
INCOMING FREIGHT. Contractor may be required to demonstrate the reasonableness of the method of freight chosen is the best value for the State. The State reserves the right to determine that the lowest price available should be applied if Contractor selects a shipping methodology that is higher than common carrier published rates charged for similar deliveries.
INCOMING FREIGHT. Incoming freight is defined as common or contract carrier charges billed to the Contractor by a third-party vendor or a third-party carrier, or charges billed to the Contractor by a freight management service operated by an affiliated corporation of the Contractor. Throughout the contract period, a Contractor may be required to demonstrate the reasonableness of the method of freight chosen, either direct or backhaul, is the best value for the state. The State reserves the right to determine that the lowest price available should be applied if Contractor selects a shipping methodology that is higher than common carrier published rates charged for similar deliveries.