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A freight rate (historically and in ship chartering simply freight [1]) is a price at which a certain cargo is delivered from one point to another. The price depends on the form of the cargo, the mode of transport (truck, ship, train, aircraft), the weight of the cargo, and the distance to the delivery destination.
The Incoterms or International Commercial Terms are a ... (cost and freight) and CFR terms for all shipping modes outside of non-containerized sea freight ...
The supply of cargo ships is generally both tight and inelastic; it takes two years to build a new ship, and the cost of laying up a ship is too high to take out of trade for short intervals, [4] the way you might park a car safely over the winter. So, marginal increases in demand can push the index higher quickly, and marginal demand decreases ...
FOB (free on board) is a term in international commercial law specifying at what point respective obligations, costs, and risk involved in the delivery of goods shift from the seller to the buyer under the Incoterms standard published by the International Chamber of Commerce. FOB is only used in non-containerized sea freight or inland waterway ...
Shipping costs have historically been calculated on the basis of gross weight in kilograms or pounds.By charging only by weight, lightweight, low density packages become unprofitable for freight carriers due to the amount of space they take up in the truck/aircraft/ship in proportion to their actual weight.
Freight transport, also referred to as freight forwarding, is the physical process of transporting commodities and merchandise goods and cargo. [1] The term shipping originally referred to transport by sea but in American English , it has been extended to refer to transport by land or air (International English: "carriage") as well.
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