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Carriage paid is used in commercial language to designate deliveries in which the shipper has taken care of the freight costs (or shipping), not the receiver.

The label 'ex works' (or also 'carriage forward), means that the recipient must assume freight or shipping costs. There are other commercial terms (commonly known as Incoterms), that regulate delivery conditions in the transport industry. These clauses deal not just with payment for transport, but also what is known as the transfer of risk, which determines to what point the shipper is liable for the condition of the goods, and when this becomes the recipients responsibility.

The Term
In German, carriage paid is referred to as 'Franko', which comes from the Italian verb affrancare (franking). This term is similar to the English 'franking', which also refers to the transport of a letter being taken care of by the sender.

In Germany, the term 'Franko' is somewhat outdated, and is slowly being replaced by the label 'frei Haus', or 'free house', which has the same meaning.

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