The process of shipping your goods from one location to another is a bit more complicated than you would imagine. The major cause of concern is the freight charges that get imposed on the goods that you are sending to your buyers. Here is all the freight-related information that you need to know about before you decide on transporting your cargo.
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The charge that gets levied to deliver cargo from its location to its destination by any carrier is known as freight charges. The freight charges depend on the kind of transportation that you select for the transportation of your goods. The total weight of the goods is also taken into account while calculating the freight charges. You can select to transport your freight on ship or airplanes among other modes.
The distance that the goods will travel is a major contributing factor of freight charges calculation. For calculating freight charges, dimensional weight sometimes gets used. While calculating the dimensional weight, the volume of the transporting goods gets considered along with its weight. The reason for taking the volume into account is to evaluate the space that the freight will take up in the transporting mode.
Among the different Types of Freight Charges, the prevalent type is the consignee collect. It means that the person who requires these goods to get transported is the one who pays for these charges. It means that you are only responsible for packing and sending the goods to its destination and not worrying about other things like paying taxes and custom declarations.
The following are the list of freight terms that will help you to understand the nuances of the shipment in a better way.
The Third Party is one of the Types of Freight Charges where a third party company that pays for the freight charges instead of the consignee or the shipper. This option becomes very useful when the order becomes complicated or the consignee, be it an individual or a business, lacks the necessary experience.
The following are the different Types of Freight Charges.
Here are the detailed explanations of all types of freight charges that are mentioned above.
Goods being transported through land, air, or water is known as shipping. It can be either non-commercial or commercial shipment. It is the process of moving a product from one pre-selected point to other with the help of shipping or a transport company. The cost required to get the good from one point to the other is known as Shipment Charges. Depending on the size of the product, you will have to decide whether it is suitable for Freight Shipping or Parcel Shipping.
The payment for Shipment Charges gets negotiated between buyer and seller. The buyer can pay the Shipment Charges directly to the shipping company if both parties agree on it.
There are two major kinds of Shipment Charges. These are landslide cost and ocean cost.
Ocean cost divides into many categories, such as:
Landslide costs get further subdivided into rail, customs, documentation, and port. The costs included in these categories are:
Both freight and shipping mean to transport the bulk of goods from one place to another. But freight generally denotes to moving goods of a larger quantity, whereas shipping generally means moving goods of a smaller quantity. If you compare Freight Charges vs Shipping Charges the shipping charges are higher than the freight charges because a large number of goods get transported at a cheaper cost than goods of a smaller amount.
If a comparison is drawn between Freight Charges vs Shipping Charges, it shows that there are different types of freight charges that will relieve you from the stress of freight shipping. There is the service option of consignee collects, third-party services, FOB Origins, FOB Destination, cash on delivery, etc. for the shippers to charge consignees and carriers for delivering the freight. The shipping charges, however, are pre-negotiated between the buyer and the seller. The seller can take the help of courier services to bring down the cost of shipment.
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