What Is Freight? How Is It Calculated?
Freight is the transport charge paid to the carrier for moving cargo from one point to another.
What Is Freight? How Is It Calculated?
Freight is the transport charge paid to the carrier for moving cargo from one point to another. The calculation method and additional cost items vary by transport mode.
What does freight consist of?
- Base freight: the main transport charge, set by route, distance and cargo quantity.
- Surcharges: fuel (BAF), currency (CAF), peak season, security and similar surcharges.
- Terminal and port charges: THC and handling fees.
- Documentation costs: bill of lading, document and customs handling fees.
Calculation by mode
Sea FCL: per container type and size. Sea LCL: volume or weight, whichever is greater (W/M). Air: per kilogram on the chargeable weight, i.e. the greater of gross weight and volumetric weight. Road: per vehicle for full loads; for part loads, by weight, LDM or number of pallets.
Factors affecting the price
- Distance, route and border crossings.
- The type, volume, weight and special requirements of the cargo (dangerous goods, temperature control).
- Season, demand and empty-return situation.
- Delivery term (Incoterms) and customs procedures.
For an accurate quote
A quote is more accurate when the loading and unloading points, type of cargo, weight/volume, ready date and delivery term are clear. You can use our quote request form.
Frequently asked questions
Are freight and transport the same?
In everyday use they mean similar things; "freight" refers specifically to the transport charge, while "transport" describes the act of carrying itself.
What do prepaid and collect mean?
Prepaid means the freight has been paid in advance by the shipper; collect means it will be paid by the consignee on arrival.
How does volumetric weight affect freight?
For light but bulky cargo, charging is based on volumetric weight; reducing the packaging can therefore lower the cost.