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 ?
The manufacturer pays freight charge, bears freight charge, but the seller owns the goods in transit, and is responsible for them during transit.
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.
There are "grave concerns" an increase in freight charges being lined up by train bosses could be the blow that finally kills the nation's proud mining tradition.
Pakistan's mango export to European countries are specially victim of decline in the wake of unjustified upward revision in the freight charges by some foreign airlines with the advent of export season.
This led many airlines shifting their freight charges from ordinary tariff charges to express tariff charges, which is a premium and is generally levied if the cargo needs to be delivered urgently, Krishnan said.
This has made it clear that, despite earlier calls, the company is in no position to be able to reduce its freight charges without prejudicing either the range of passenger services or the 'very competitive' passenger fares enjoyed by residents and visitors.
Two bales can be loaded side by side and stacked two-high, which reduces freight charges.
Check to make certain you aren't being charged twice for dealer preparation fees, freight charges, or advertising fees (regional or local), which have already been included in the factory invoice.
This eliminates having to wait to accumulate a 100 gallon order to save money on freight charges.