To Pay vs Paid vs TBB (To Be Billed)
The three universal freight payment settlement mechanisms used in Indian commercial logistics.
Detailed Explanation & Statutory Rules
Freight billing is categorized into three terms: (1) "Paid" — freight is settled upfront by the consignor (sender) before or upon vehicle dispatch; (2) "To Pay" — freight is collected directly from the consignee (receiver) at the destination warehouse before unloading; (3) "TBB (To Be Billed)" — institutional shippers are billed periodically (e.g. 15-day or monthly cycle) against verified Proof of Delivery (POD).
Practical Indian Freight Example
"A steel plant books 20 trucks monthly on "TBB" terms, paying invoices 30 days after dispatch, while agricultural mandi consignments are predominantly "To Pay"."
Key Questions & Answers
Can an LR payment term be changed after vehicle dispatch?
Yes, via an official consignment diversion/amendment note issued by the booking GTA before cargo delivery.
Other Useful Transport Terms:
Automate Your Freight Desk with Bilty
Create compliant bilties, track party ledgers, and manage fleet expenses.