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Advance freight refers to payment of bill of lading freight in advance. Advance freight can be partial payment or full payment of the bill of lading freight given in advance. The air and ocean freight charges are paid at the port of origin or loading. It is not refundable even if the shipment fails to arrive at its destination. Ordinary freight and chartered freight may be paid in advance either before the delivery of cargo or commencement of charter party. It qualifies as advance freight if it is not repayable in case of loss. It is not the ship owner but the party who paid the freight in advance who should insure the advance freight.