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    What is ship freight and how is it calculated?

    What is ship freight and how is it calculated?

    For many years, entrepreneurs have been using sea routes to deliver goods between countries; in rare cases, the seller of the goods is located in the same continent or in a neighboring state. For the record, the buyer and supplier are separated by an important relationship. Then it is easier and easier to carry out transportation from China to Ukraine using waterways. The specialists of the AF-Group company will tell you in detail what the freight of a vessel is and how it is calculated.

    What does freight mean in freight transport?

    Freight is the payment for the transportation of goods. This service is in demand among wholesale businessmen who buy products in other countries and deliver goods to work in their country.

    What is freight in sea freight?

    In fact, this is the selection of the necessary water transport or part of it for the transportation of goods with the subsequent registration of contractual obligations between the owner of the vessel and the customer. Bilateral contractual obligations prescribe the rights and obligations of the parties. It turns out that the shipowner undertakes to transport the goods to the final destination safe and sound, adhering to the term specified in the contracts. The owner of the cargo will pay for the delivery service.

    Chartering a vessel means renting a cargo liner or space on it for transporting goods to a given point.

    What is chartering?

    Chartering is a contractual obligation under which the charterer provides the charterer with a vessel for a specified period.

    The owner of the goods may or may not understand which vessel suits his needs, so it is difficult for him to contact the ship owner. A charterer is a legal entity that knows exactly the ship owners, types of water transport, as well as their location and trade routes.

    Most brokerage houses guarantee that their highly qualified specialist is ready to develop and offer favorable transportation conditions for clients. However, negotiating logistics and shipping standards is not an easy task. Revenue from the export and import of goods largely depends on the correctly chosen freight agent. Therefore, you must be completely confident in your agent.

    What does freight mean in logistics?

    Logistics is designed to coordinate the movement of passengers, various products and funds in order to minimize costs. Freight, as payment for transportation, is an integral part of logistics. After all, it is transportation that ensures the delivery of products from the supplier to the buyer.

    How to calculate freight?

    The following aspects influence the cost of shipping:

    • type of delivery (consignor's warehouse-port-port-consignee's warehouse)
    • price for goods loading and unloading services
    • sea ​​freight
    • port dues.

    AF-Group can provide you with a choice of several rates for sea freight from various ship owners. In this case, you will come across abbreviations FIFO, LIFO, FILO, LILO, where the first means the complete absence in the freight cost of the price for loading and unloading operations, and the last - their presence.

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