The Bill-To Party simply identifies the specific company or entity legally responsible for paying the freight charges and all associated logistics fees.
In complex project cargo moves, the billing is rarely simple. The Bill-To Party is almost never the factory that made the component (the shipper) or the final job site (the consignee). Instead, it is typically the central project manager, such as an EPC (Engineering, Procurement, and Construction) firm or the dedicated Third-Party Logistics (3PL) provider, who is managing the entire project’s budget.
Designating the correct Bill-To Party is a critical checkpoint in the pre-shipping process, as it directly impacts the creditworthiness and release of the shipment.
Credit Vetting and Account Status
Since project cargo freight rates can be substantial (often hundreds of thousands of dollars for chartering vessels), carriers and forwarders will strictly vet the Bill-To Party before confirming a booking. The Bill-To Party must have an established credit line or an active account with the logistics provider. If this entity has a credit hold or insufficient limits, the carrier will refuse to lift the cargo, regardless of the shipper’s readiness.
Triangular Trade and Cross-Trade
In global infrastructure projects, Triangular Trade is common. For example, a generator is shipped from a manufacturer in Germany (Shipper) to a dam project in Brazil (Consignee), but the freight is paid by the Project HQ in the USA (Bill-To Party). This setup dictates that the Bill of Lading is usually marked Freight Prepaid (paid at origin/third location) rather than Collect.
Cargo Release and Demurrage Risks
The carrier’s local agent at the destination will generally block the release of goods until they receive confirmation that the Bill-To Party has settled the invoice. If there is ambiguity about who the Bill-To Party is, or if the EPC firm delays payment, the machinery will sit at the port.
This triggers demurrage charges — daily storage fines — which can accrue rapidly for out-of-gauge cargo, and also results in expensive downtime for cranes and crews waiting at the job site.