Freight is a commonly encountered term in commerce, particularly vital for those working in international trade, logistics, and maritime transportation. Simply put, freight refers to the payment made for transporting goods. Initially used exclusively in maritime transportation, the term has now expanded to include road, air, and rail transport as well.
Freight charges can vary depending on the type of transportation and the terms of the agreement. The two main types of freight are:
1. Charter Party:
In this type of transportation, a portion or the entirety of a vessel is leased for carrying the cargo. The shipowner or carrier rents out a specified area or the entire vessel to the sender. The key factor here is not the amount of cargo but the rented section of the ship. For example, if large volumes of materials are to be transported, the whole vessel or a significant part of it might be chartered.
2. Freight Transportation:
Unlike the Charter Party, where a part of the ship is leased, in this type, only the goods to be transported are paid for. Thus, the cost is determined by the weight or volume of the cargo rather than the space it occupies. This method is typically chosen for small shipments or mixed loads where only the transported goods' amount is taken into account.
Freight plays a critical role in understanding transportation costs and the functioning of international trade. Though it started with maritime shipping, it has become a significant cost factor in road, air, and rail transportation as global trade volumes have increased.
08.07.2024