Cash on Delivery (COD) implies that payment is made at the exact moment the goods are handed over. While common for pizza and small parcels, COD is almost non-existent in international heavy equipment shipping.
Why COD Fails in International Trade
- Ocean carriers won’t do it. Atlantic Project Cargo and other big names, like Maersk, will not collect money on your behalf. Their job is to move the box, not be your bank.
- Customs barriers. The cargo cannot be delivered until customs duties are paid. The driver cannot simply show up at the buyer’s yard and ask for a check because the cargo is legally stuck at the port until cleared.
- Risk. No trucker wants to carry $150,000 in cash or a cashier’s check while driving a conspicuous heavy haul rig.
Documentary Collection Alternative
Since true COD is impossible, the closest trade equivalent is Cash Against Documents (CAD) or Documentary Collection.
- You ship the machinery.
- You send the original Bill of Lading (the title document) to the buyer’s bank, not the buyer.
- The buyer must pay their bank to get the Bill of Lading.
- Once they pay, the bank hands over the documents, and the buyer can claim the cargo at the port. This ensures you don’t lose control of the title until you are paid, mimicking the security of COD without the driver having to handle money.
Domestic COD Exceptions
The only place you might see genuine COD is in short-haul domestic trucking of smaller equipment (e.g., a skid steer moving from Texas to Oklahoma). Even then, cash usually means a certified cashier’s check handed to the driver. If you agree to this, ensure the check is verified before the driver unchains the machine. Once the iron is on the ground, your leverage is gone.