Freight
The charge for carrying cargo, primarily by sea. The word is also used for the carriage itself or for chartering a vessel for cargo.
The term comes from maritime law. Freight is the payment to the carrier for delivering cargo, and chartering is the contract under which a vessel or part of it is provided for carriage. Today the word is also used for air, rail and road transport.
Types
- Sea freight: the main option for containers and bulk cargo. The rate depends on the shipping line, the route, the container type and the season.
- Air freight: for urgent and high-value cargo. It is charged by actual or volumetric weight, whichever is greater.
- Rail and road freight: for overland transport.
Sea carriage takes different forms: liner shipping under a bill of lading, voyage charter, time charter.
What makes up the rate
The base freight rate plus surcharges: fuel, seasonal, dangerous goods, port charges, documentation. So compare rates not by the base but by the full amount in the carrier’s invoice.
Who pays
This is decided by the Incoterms delivery term in the contract. Under CIF and CFR, the seller pays the freight and includes it in the price of the goods. Under FOB or EXW, the buyer pays for carriage separately. The bill of lading states whether the freight has been paid in advance (freight prepaid) or is payable at the port of destination (freight collect).
Where it comes up in payments
If you pay the freight, it is a separate payment under a contract of carriage or freight forwarding. The bank or the agent needs the contract, the carrier’s invoice and the transport documents. The carrier often requires payment before releasing the cargo or the documents, and a delayed payment delays the cargo itself. The cost of carriage to the border is part of the customs value of the goods.
More details: Freight payments.
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Describe the payment. We'll reply with a proposed route and terms. We name the agent in advance, and the rate and fee go into the payment order before your roubles are debited.