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Logistics & Supply Chain vocabulary · Freight and Shipping

Freight rate

Meaning in logistics & supply chain, with examples

nounCore term

In logistics & supply chain, freight rate means: The price a carrier or forwarder charges to move goods, usually per container, per pallet, per kilogram or per shipment.

In Turkish: navlun fiyatı, navlun ücreti, taşıma ücreti

How it is used

Rates go up and fall, are negotiated, and are either fixed for a contract period or quoted 'spot' for a single shipment. Quotes often list the base rate plus surcharges, such as a fuel surcharge (BAF) or a peak-season surcharge.

Example sentences

  1. Freight rates from China have fallen, so it's a good time to sign an annual contract.

  2. The freight rate is 1,850 dollars per 40-foot container, excluding local charges.

Common collocations

  • spot freight rate
  • contract rate
  • negotiate freight rates
  • all-in rate
  • freight rate increase
  • freightGoods carried in bulk by truck, ship, train or plane, and also the money paid for carrying them.
  • quotationA written statement from a supplier or carrier giving the price it will charge for specific goods or services, usually valid for a limited time.
  • carrierA company that physically transports goods, such as a trucking company, a shipping line, an airline or a rail operator.
  • chargeable weightThe weight used to calculate the freight charge: the higher of the actual gross weight and the volumetric weight worked out from the shipment's dimensions.
  • ocean freightThe transport of goods by ship, mostly in containers; the cheapest way to move large volumes over long international distances.

More terms: Freight and Shipping

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