Freight Charge

Freight Charge

 

(Russian, frakht), the payment made to the owner of a means of transport in return for the shipping of freight or the transport of passengers. The freight charge is usually paid by the shipper—that is, the party that has concluded a shipping contract with a carrier, who assumes the obligation of shipping the cargo from one point to another.

The concept of a freight charge applies to shipping on various forms of transport, including oceangoing ships, river vessels, motor vehicles, and airplanes, but the term is most commonly used in maritime shipping. In certain cases the freight charge includes not only payment for the actual transport of goods or passengers, but also, depending on the terms of the contract, a payment for loading and unloading.

In tramp shipping operations in the capitalist countries, the charge for shipping services is a freight rate agreed upon when the shipping contract is drawn up; the rate is subject to market forces. In liner operations, the charge for services takes the form of shipping tariffs that remain valid for a fixed period of time and that are generally set unilaterally by shipping firms.

In the USSR, the freight charge for shipping the cargo of Soviet foreign trade organizations is imposed in accordance with tariffs agreed upon by the carrier and the owner of the cargo.

A contract states when the freight charge shall be paid; payment is usually made upon delivery of the cargo. The charge is computed by multiplying the shipping rate (the freight rate or tariff) stipulated in the shipping contract by the amount of cargo delivered to its destination or by the amount of cargo accepted for loading at the point of origin. In those cases where it is difficult to determine in advance the amount of cargo to be shipped, the contract names a total freight charge for one voyage rather than a freight rate.

In a time charter, a ship is hired for a stated period of time. The shipper is charged per ton deadweight per month or at a daily rate of hire.

S. I. POLIAKOV

References in periodicals archive ?
They said the petrol pumps were selling petrol and diesel after including freight charges in the prices but the district administration was forcing them to sell the products excluding the freight charges.
New Delhi: The Competition Commission imposed more than Rs 54 crore penalty on three airlines -Jet Airways, SpiceJet and InterGlobe Aviation - for carrying out unfair business practices like fixing and revising Fuel Surcharge (FSC) - a component of freight charges.
The PSO has a depot in Jaglot GB, while Chitral and AJK had no depot,' Butt said, and added, 'The government is delaying the fulfillment of its promise regarding enhancement of freight charges for hard areas and now we don't trust anyone and will continue the strike till the fulfillment of our demands.
1)Freight Charges - In your quotation you will invariably mention freight charges up to our stores.
FAISALABAD -- Punjab Power Development Board (PPDB) has proposed special railway freight charges of Rs 2.
New Delhi, June 20 ( ANI ): With the Indian Government and Railway Ministry increasing passenger fares and freight charges, there has been a common outrage amongst opposition parties and public.
Mohammad Sadiq Abdullah, manager at freight forwarding company Al Aweer General Land Transport, said his company would pass on some of their operating cost benefit to customers in the form of lower freight charges on longer routes.
We're all aware that shipments billed "prepaid" require the carrier to collect its freight charges from the consignor named on the bill of lading, while shipments billed "collect" are to be collected from the consignee.
In excess of $335 million in freight charges have been paid in 2000, he said.
B above, the application of HST to freight charges for continuous (or periodic) shipments raise a number of issues:
When that company is the one paying the bill for the freight charges, it is in its best interest to perform an audit of those shipments to ensure suppliers followed predetermined guidelines.
He said the government is delaying the execution of its promise regarding enhancement of freight charges for those areas.