Designated Port: Meaning, How It Works and Differences from a Free Port
Carriage paid is a shipping method whereby the transport costs are paid by the consignee upon delivery, rather than by the consignor at the point of dispatch. This information is stated on the consignment note (DDT) accompanying the goods and, in the international Incoterms terminology, corresponds to the term EXW (Ex Works). In this guide, we look at how the ‘port assigned’ term works, who bears the costs and risks, and how it differs from ‘free port’.
What does ‘port of destination’ mean?
When a consignment is sent on a ‘carriage paid by recipient’ basis, the courier collects the delivery charge directly from the recipient upon delivery. The sender arranges the shipment but pays nothing: the cost is borne entirely by the recipient.
It is important to clarify a point that often causes confusion: it concerns just the cost of transport, not the value of the goods. If the recipient is also required to pay for the contents of the parcel, this is referred to as cash on delivery (COD) — a separate service that can be added individually.
In addition to the costs, under the ‘delivered at port’ term, the risks associated with transport are generally borne by the consignee: it is the consignee who, by accepting the goods, assumes liability for any undisputed damage upon delivery.
What does ‘free port’ mean?
Free port is the opposite arrangement: transport costs are payable by the sender, which the recipient pays when booking the shipment. The recipient receives the goods without having to pay anything to the courier. In Incoterms terminology for international shipments, ‘carriage paid’ corresponds to the term DDP (Delivery Duty Paid), whereby the sender also bears the cost of customs duties and charges.
Free delivery is by far the most common method today, particularly in e-commerce and for shipments between private individuals: the seller or sender pays for the delivery, and the cost may be included in the price of the product.
A comparison of designated ports and free ports
| Port Assigned | Free Port | |
| Who pays for transport? | The recipient, upon delivery | The sender, on departure |
| Incoterms term | EXW (Ex Works) | DDP (Delivery Duty Paid) |
| Transport risks | Carriage paid by the recipient | To be paid by the sender |
| Information on the delivery note | “Port allocated” | “Free Port” |
| Typical use | B2B, specific commercial agreements | E-commerce, private customers, standard delivery |
When using the assigned port
Delivered at the port of destination is now a niche shipping term, used predominantly in B2B contexts where there are established commercial agreements between the parties. Some typical examples:
- Recurring supplies between companies — when the buyer prefers to manage logistics costs through its own transport contracts
- Ex Works (EXW) — the buyer collects the goods from the seller and bears all costs from that point onwards
- Specific sender-recipient agreements — when the parties agree that the cost of transport is to be borne by the recipient
For private individuals and e-commerce, delivery to a designated address is now rare: most express couriers and online platforms operate exclusively on a cash-on-delivery basis, with the delivery charge payable at the time of booking.
Delivery address specified for express couriers: what you need to know
The major international express couriers (DHL, UPS, FedEx, TNT) only offer the ‘port assigned’ service to business customers with an active account: the courier charges the delivery costs to the recipient’s account rather than the sender’s. For shipments booked online by private individuals, however, payment is always made at the time of booking — carriage paid.
If you need the recipient to pay for the goods (but not the delivery), the available option is the mark: the courier collects the agreed amount on delivery and passes it on to the sender. On SpedizioneComoda, you can add cash on delivery to shipments to Italy when booking.
| 💡 SpedizioneComoda recommends: If you sell online and your customer wants to pay on delivery, don’t look for ‘porto assegnato’: what you need is ‘contrassegno’. ‘Porto assegnato’ refers only to the cost of delivery and is reserved for couriers’ business accounts. |
Practical and tax implications
The choice between free port and designated port has a number of practical implications to bear in mind:
- Invoicing — In the case of ‘carriage paid to’, the cost of transport is invoiced by the carrier to the consignee; in the case of ‘carriage paid by the consignor’, it is invoiced to the consignor. This affects who can claim the cost as a business expense.
- Rejection of goods — At the designated port, the recipient may refuse the parcel upon delivery, leaving the sender to bear the costs of storage and any return.
- Liability in relation to transport — The party paying for the carriage generally chooses the carrier and is liable for it. At the designated port, the consignee also assumes the risks associated with the carriage of the goods.
- International Shipments — For shipments outside the EU, the Incoterms (EXW, DDP, DAP and others) precisely define where costs and liability lie, including duties and customs clearance. It is essential to state these correctly on the commercial invoice. The official, up-to-date list of rules is published by the International Chamber of Commerce (ICC).
📋 Useful links:
- International Shipments — all destinations available from Italy
- Cash-on-delivery shipments — how it works and how to activate it
- FAQ - General Questions — answers to frequently asked questions
Article updated: July 2026. The terms and conditions for designated port services vary depending on the courier and account type: for business enquiries, please contact our team.
❓ FAQs — Frequently asked questions about the assigned port
What does ‘port of destination’ mean?
‘Carriage paid’ means that the transport costs for the consignment are paid by the consignee upon delivery, rather than by the consignor at the point of dispatch. This is indicated on the transport document (DDT).
Who pays in this case?
The recipient. Upon delivery, the courier collects the delivery charge from the person receiving the goods. The value of the goods, however, is irrelevant: that is what cash on delivery is for.
What is the difference between ‘free port’ and ‘designated port’?
Under the Free Port term, carriage is paid by the consignor on departure; under the Port of Discharge term, it is paid by the consignee on delivery. The difference relates solely to the cost of carriage, not to the value of the goods.
Can I send a parcel on a cash-on-delivery basis using SpedizioneComoda?
Shipments booked online via SpedizioneComoda are carriage paid: the delivery charge is paid at the time of booking, at discounted rates compared to the couriers’ official price lists. If you need to collect payment for the goods on delivery, you can add the cash-on-delivery service for shipments within Italy.
Are a designated parking space and a parking permit the same thing?
No. ‘Carriage paid’ refers to the cost of transport (paid by the recipient); ‘cash on delivery’ refers to the value of the goods, which the courier collects on delivery on behalf of the sender. They may both apply to the same consignment, but they are separate services.
