Third Party Freight

Each PO issued by DTE contains freight terms sometime referred to as inco terms. These terms control the point at which risk of loss and responsibility for freight pass from vendor to DTE.

In most cases, freight terms will be set by DTE as either 3rd Party Bill, FOB Origin or 3rd Party Bill, FOB Destination. Under these terms the carrier is expected to bill DTE at their 3rd Party billing location and you the vendor should never see the freight charge.

DTE typically does not pay freight directly to vendors when the terms are 3rd Party Billing in part to avoid the risk of double-payment of freight charges.