Key definitions of over 1500 useful international trade terms. Below are the FAK rates for a sample list of corridors, commodities and container types where the rate increase is effective-The above rates are inclusive of Basic Freight Rate (BAS), Bunker Adjustment Factor (SBF), and Emergency Risk Surcharge (ERS). Please find the new applicable CMA CGM Freight All Kinds (FAK) rates(*) as follows as from July 15, 2020 (date of loading in the origin ports in Asia) and until further notice but not beyond July 31st, 2020:. Most carriers are selling FAK premium rates to secure space, but even with that space is already full for the 1st half of January 2021. Simple, right..?? Why forecast freight? 1- Improve the Service and 2 – Reduce the Costs. Freight Rate Structure . The determination of the freight rates is different for different forms of shipping. Inland Tariffs. Read product reviews of some of the leading brands in the industry.. Liner Shipping . An important factor in negotiations will be the type of freight you ship . Our tariff consists of 2 parts, namely one for ocean rates and surcharges displayed in tariff sections according to different trades, and another for rules and regulations tariff section (RURE-002) which includes explanation of charges/terms and can be viewed under Rules. Shipping freight is an expensive endeavor; therefore, it is your responsibility to get the best rates possible. Then Demurrage penalties imposed for excess use of container from its unlo… Demurrage penalties are imposed for excess use of container from its unloading at the terminal until the return of empty containers at the port (for imports) or from the date of receipt of the empty container to be loaded before the loading of a container loaded on a ship (for exports). CMA CGM Freight All Kinds (FAK) rates as follows as from February 1st, 2021 (date of loading in the origin ports) until further notice. Demand and freight rates are expected to remain high in January. These rates only show Basic Ocean Freight. Index values are calculated by taking the median price for all prices (to ignore the influence of outliers on active lanes) with weighting by carrier. We have a dedicated ocean freight rate management team that constantly works with data. But the sudden rise in freight rates has turned the seemingly good news around. These rates only show Basic Ocean Freight. FAK agreements are rare, and it's likely they aren't the best option available to lower freight cost anyway. Hi Andre, there are of course pros and cons and sometimes the pros outweigh the cons.. High demand coupled with equipment shortage continues to drive record freight increases on East Med. Freight that is prone to damage or theft is not profitable for a carrier and thus more expensive to ship. Definition of W/M: Weight or measurement is a method of quoting freight rates: 1. for sea freight, per metric ton (1.000 kilograms) or per cubic meter (35.3 cubic feet) IHS Markit Freight Rate Forecast provides clients with an analytics-driven and unbiased view of the freight market, helping clients to find clarity in a volatile environment. And it’s a tool used by the common LTL freight carriers. However, the specific break down of named account rates versus FAK rates sold depends entirely upon the client base of each forwarder. On the airline side, IATA Net Rates automates rate distribution on a stable and secure platform, easily accessible by freight forwarders of all sizes and in all markets, no matter how niche. Spot freight rates are capacity driven and there is no commitment for such rates. While logistics service providers like Freight Forwarders could also choose to use above, these rate types have been set to benefit BCOs more than the freight forwarders.. Forecasting freight volumes and rates is essential for building financial forecasts and budgets for companies that sell products that are shipped. Named account or commodity rates aren’t ‘bad’ in any sense, but customers must always calculate the cost of obtaining those rates and the corresponding service levels that come with them before rejecting FAK rates as an alternative. Declared High-Value Cargo (Cargo Value exceeding $500.000 per container) ; High risk or sensitive cargoes such as Government or military cargo ; Special cargo types such as Out of Gauge Cargo. What would you like me to write about..?? These FAK rates are traditionally slightly better than Open Rates but higher than Contract Rates, Tender Rates and Named Account Rates.. CMA CGM PSS for cargo from India to North Europe & the Mediterranean. A spot freight rate is a one time freight rate applicable for sea or air shipment and are valid for a particular shipment only. Some shipping lines and BCOs may enter into a contract for the shipment of specified goods and volumes over a mutually agreed period of time.. This contract gives BCOs the option to have their freight rates fixed for that specified period of time which means they don’t need to worry about fluctuating freight rates which could impact their product pricing.. Well, it is mainly related to the value of the goods in the container and the risk of loss, damage, theft etc that the shipping line has to consider while the container is in their possession.. Additional terms and fees to local agents of the line usually via port forwarding. To avoid confusion, take a look at these ocean freight abbreviations to ensure you’re clear on their meaning on your next shipping quote, invoice, or conversation. So in the line’s system, it will show the cargo is booked by the forwarder on behalf of the “named account” and for those shipments, this named account rate will apply.. A spot freight rate is a one time freight rate applicable for sea or air shipment and are valid for a particular shipment only. FBX freight rate data is aggregated and anonymized from live business databases with tens of millions of price points updated on a daily basis. Imagine the administration work involved for both shipping line and forwarder if all the rates were based on commodity and each rate had to be filed individually.. Currently, more than 50 percent of the company's deliveries are delayed, meaning … Difference between Maritime, Shipping, Freight, Logistics and Supply Chain. Develop a strategy for utilizing multiple modes (full truckload, less-than-truckload, intermodal, rail, ocean, and air) depending on freight rates and transit times. So naturally, each line tries to optimise their liftings and try to strike a balance between TEU and Tonnage.. All in rate - meaning that the cost of transportation includes all the additional fees provided for under the conditions of carriage. They are subject to Bunker related Surcharges (LSS), the THC/D (Origin and Destination), the Security related Surcharges (PSF&CAS), and other surcharges if applicable. Maersk Line is announcing an increase in FAK rates (Freight All Kinds). Looking for online definition of FAK or what FAK stands for? Most carriers are selling FAK premium rates to secure space, but even with that space is already full for the 1st half of January 2021. 50 to 70 million price points are collected every month. Commodity specific or named account rates do offer economic value but really only to BCO’s whose volume justifies volume discounts or commodity pricing. I headlined this article as “ the art of handling a freight tender ” because majority of the tenders are quite complicated and capable of pushing people over the edge due to its complexity with its tight deadlines and the nearly impossible task of compacting the costs.. Definition of FAK (Freight All Kinds) FAK is a term used within the freight and logistics industry when an LTL carrier assigns a single tariff classification for freight that would typically run … The FAK proved to be very effective in its original design. Zu den FAK zählen konsolidierte Sendungen. Market Outlook March 2019 – Ocean Freight Rates Major Trades Market outlook on smaller trades available in the back-up O C E A N F R E I G H T R A T E S O U T L O O K ASPA – EURO The pick-up after the CNY holiday is slower than expected and there is some pressure on the FAK rates. All information contained in the tariff is true and accurate and no unlawful alteration will be permitted. FAK stands for “ Freight of All Kinds.” It’s a pricing tool used by most LTL carriers, and it groups freight class ranges so that they are billed or rated at the same class. In most cases, contract rates are set for a one year period. Freight Tenders are an integral part of shipping and freight for the carrier, shippers and OTI (freight forwarder or NVOCC).. Ocean freight transport is the shipping of goods by sea via shipping containers. In these cases, the forwarder will negotiate a Named Account Rate with the carrier.. CMA CGM … Most of the shipping lines currently are part of global alliances.. Many multinational companies especially BCOs, who have large volumes moving across various trade lanes send out Request for Quotation (RFQ) through freight tenders which covers the freight rates for a set volume over a set period on multiple trade lanes.. An RFQ is a chance for the BCOs to competitively cost the services offered by the service providers.. Mainly exporting fabrics to Europe, Africa and the U.S., the company has seen its freight rates more than triple since September. Well, many would wish it was so.. CMA CGM announces fresh Asia rates. Ocean freight is the most common mode of transport that importers and exporters use. According to globalnegotiator.com , they are rates applicable to all types of goods and not restricted to … Less Than Truckload (LTL) Freight from several shippers loaded onto an individual trailer. What Affects Ocean Freight Rate? And what the FAK does, it essentially groups classification ranges so that they are billed at one specific class. There are some BCOs who choose to let a freight forwarder handle all their freight negotiations under an open revenue arrangement with the forwarder.. [YONHAP] Ocean freight rates are up as much as threefold on year, and the firmness of pricing could remain and help Korea’s shippers for the rest of 2021. Definition of FAK (Freight All Kinds) FAK is a term used within the freight and logistics industry when an LTL carrier assigns a single tariff classification for freight that would typically run under several NMFC codes.. Instead of charging you a different rate at each different class, the carrier can give you an F.A.K. And in simplest terms, an FAK– or, again, Freight of All Kinds– it’s a pricing tool. By doing this, an import-export transaction can be assigned with a single tariff, as it is considered a consolidated cargo. So the more contract rates they have, the better for them.. FAK stands for “Freight of All Kinds.” It’s a pricing tool used by most LTL carriers, and it groups freight class ranges so that they are billed or rated at the same class. CMA CGM Freight All Kinds (FAK) rates as follows as from February 1st, 2021 (date of loading in the origin ports) until further notice: View Article. FAK rates are non-discriminatory by treating all commodities the same way. You’ll be able to track your shipment right on the Freightos.com platform. Shanghai Export Containerized Freight Index (SCFI) was officially launched as of October 16, 2009. The fragmented nature of the forwarding market suggests that at least one-third of the container shipping market is using FAK rates and quite likely even more. We work with some large forwarders who simply don’t have a big ocean freight activity and hence FAK pricing meets their needs. Here we will discuss FAK Rates and how it works, but before that, here is a brief explanation of the ingredients of the above flavours.. What is a letter of credit, how it works and who needs it.. What is a Switch Bill of Lading and when and why is it used..?? Learn how your comment data is processed. …..’. For example, Ocean Freight ORIGIN DESTINATION 20DC 40DC 40HQ Rotterdam Shanghai USD400 USD500 USD500 Origin Terminal … Freight / Our Services • / Shipping terms / Gate term (ICC) Gate term (ICC) Gate Term: Loading. The phrase fixed implies that the base rate agreed in the Contract cannot go down …we apply the rule ‘ fixing the ceiling but no the floor …….any Provider will always want to keep his Customer competitive …so when rates fall the incumbent Provider will want to lower the base rate to keep his customer competitive …after all the worse case is when the Customer has to call the Provider and say …..hey the market rates have fallen , whey didnt you tell me and offer me a lower base rate ? That’s why CoLoadX focuses almost exclusively on offering forwarders & NVOCCs FAK rates. If you can’t find what you are looking for, enter the search term in the search bar below (and hit enter). This index reflects the ocean freight and the associated seaborne surcharges of individual shipping routes on the spot market. FAK Freight of all kinds Freight rate applicable to all types of goods and therefore is not restricted to a particular commodity . There is a seller who sells this product ; The seller arranges for the product to be transported to the buyer. Freight that is prone to damage or theft is not profitable for a carrier and thus more expensive to ship. CMA CGM … You can order insurance and customs clearance for your shipment while you book your freight. Named account rates are stable with a longer validity period and committed volume from a specific customer, FAK rates are very volatile and can trade below or above-named account rates. CMA CGM PSS for cargo from India to North Europe & the Mediterranean. They are actually very useful for our customers who prioritize simplicity and transparency in pricing over discounting. How does demurrage, detention and port charges work..?? In a continued effort to provide a high standard of service with great reliability, CMA CGM announces the new Freight All Kinds (FAK) rates as follows: Effective November 1st, 2016 (B/L date): The above rates are inclusive of Basic Ocean Freight (BOF), Bunker Adjustment Factor (BAF), Currency Adjustment Factor (CAF), ISPS. In such cases, they may decide to offer “spot rates” in order to entice customers to ship with them.. Something like a “Sale”, but for B2B.. When working in an alliance, each line has its own allocation in terms of TEUs and Weight which is apportioned based on the total DWCC of the ship.. CMA CGM Group announced the following Peak Season Surcharge effective February 1st, 2021 (date of loading in the … Counting 100 SMARTShip deployment and more View Article. The process of global trade is simple to look at, especially if you look at it from the outside.. Remember that the freight forwarder may or may not declare the details of the actual shipper at all times (like when they issue their House Bill of Lading).. Now to the subject of this article.. All the above rate types/negotiations are considered by many to be biased towards BCOs.. Freight Tenders are an integral part of shipping and freight for the carrier, shippers and OTI (freight forwarder or NVOCC).. News. Since the majority of the cargoes that the freight forwarder is handling may be general cargoes that do not require special handling, special containers, monitoring etc, FAK rate assists the forwarders and shipping lines in avoiding this additional administration burden.. The ocean transport industry provides a wide range of shipping services, which may be broadly split into two main categories: liner shipping and tramp shipping. Since the freight rate is decided on that particular day, it is to be counted as spot rate. FAK stands for Freight All Kinds which is a pricing model in which the freight rate charged is the same for all types of goods in a specific size/type of container (say 20′ GP) and does not depend on the cargo type inside the container.. CMA CGM announces fresh Asia rates. The shipment is based upon a separate rate than truckload rate. The disadvantage to FAK rates is that they may not be low enough for the needs of a specific customer or commodity and that may cause the customer to incur unnecessary direct and indirect costs. Please be advised that APL will apply the following Freight All Kind (FAK) Basic Ocean Rates with effect from 1 March 2019 until further notice, for the service scope stated below. Definition: FAK (Freight all Kinds) is a pricing mechanism that groups multiple classes of freight into a single class. Ocean Freight Meaning: What Is Ocean Freight? I headlined this article as “ the art of handling a freight tender ” because majority of the tenders are quite complicated and capable of pushing people over the edge due to its complexity with its tight deadlines and the nearly impossible task of compacting the costs.. You can order insurance and customs clearance for your shipment while you book your freight. Calculating the ocean freight rates can be complicated because there are so many variables and most of them keep changing at different times of the year. Consider a global freight forwarder shipping millions of containers across the world on various trade lanes using shipping lines.. Freight all Kind (FAK) steht für Güter, die gebündelt mit einer Frachtrate versehen werden. Container News Team-March 7, 2020 0. On the airline side, IATA Net Rates automates rate distribution on a stable and secure platform, easily accessible by freight forwarders of all sizes and in all markets, no matter how niche. A container can be loaded with LCL cargo at a container freight station for LCL delivery. High demand coupled with equipment shortage continues to drive record freight increases on East Med. In fact, a full 90% of everything is shipped by ocean freight and sea freight. Prices used in the index are rolling short term Freight All Kind (FAK) spot tariffs and related surcharges between carriers, freight forwarders and high-volume shippers. View Article. A Shot to the Foot. While the consolidator may charge its clients on a commodity-specific basis, it pays the undercarrier a predetermined FAK rate. Calculating the ocean freight rates can be complicated because there are so many variables and most of them keep changing at different times of the year. Cleansing, validation, and all of that. Organisation Name: Hapag-Lloyd AG FMC Organisation Record: 005980 Organisation Type: VOCC Address: Ballindamm 25, D-20095 Hamburg, Germany Contact: Legal department, Hamburg Phone: +49 40 30014017 FAX: +49 40 30012254 Disputable cargo such as a charity or relief goods etc ; You are a freight forwarder who deals with general cargo which doesn’t fall under a commodity classification ; You don’t have volumes big enough to have a contract rate which may sometimes include a minimum quantity commitment (MQC), but still require rates that are slightly lower than Open Rates ; Your cargo is not exceptionally high in value or heavy in weight ; You don’t want to go through the processes involved in contract negotiations or tenders. Essentially, FAKs were set up to help shippers who ship items at multiple freight classes ship all those shipments at the same class. Make sure you’re getting billed what you were quoting & make sure your customer is happy with the pricing and service they are getting. When it comes to ocean freight transport, shippers have benefited from almost a decade long “down-cycle” as far as rates are concerned. FAK is listed in the World's largest and most authoritative dictionary database of abbreviations and acronyms FAK is listed in the World's largest and most authoritative dictionary database of abbreviations and acronyms They are basically average cost rates; the ship owner distributes his projected total costs over the anticipated number of containers to be moved. Spot rates depend on various factors namely demand in that region, oil prices, bunker prices etc. Freight All Kind (FAK) is one of those INCOTERMS and it is employed when different types of products are assembled in one single cargo to be shipped together and labeled as FAK. A container can be loaded with LCL cargo at a container freight station for LCL delivery. Mainly exporting fabrics to Europe, Africa and the U.S., the company has seen its freight rates more than triple since September. Ocean Rates and Surcharges according to the different trades; Details can be found under Tariff Records. Notify me of follow-up comments by email. Freightos’ vast database enables a high level of accuracy in calculating the market rate, and includes precise ocean freight rate historical charts. For example, in the case of freight under LILO, this means that in the U.S., except for freight, loading and unloading, also includes all related costs, such as BAF, CAF, etc. This is a common INCOTERM employed by freight forwarding companies that act as a carrier for multiple … News. Ocean freight transport is the shipping of goods by sea via shipping containers. Freight is combined with other freight from other shippers. Counting 100 SMARTShip deployment and more View Article. The key thing about Xeneta is that it's independent and neutral. Reason it is useful: It allows for much easier rating and reduces re-classification and billing errors for companies that ship a wide range of products. lcl consolidation is allowed . Maersk Line has announced an increase in FAK rates (freight of all kinds) from South East Asia to Mombasa and Dar es Salaam, effective... Read more. But many ask, why should shipping lines charge different freight rates for different commodities when they don’t handle the cargo inside the container and the handling costs are the same for all containers..?? A great service will always justify premium pricing or even simply less complicated pricing. In this option, the carrier will provide the forwarder a “special rate” only for that “named account”.. please be contact algeria office even for some exceptions such as promotional materials which is not for re-sale before you execute the shipments. Market Outlook March 2019 – Ocean Freight Rates Major Trades Market outlook on smaller trades available in the back-up O C E A N F R E I G H T R A T E S O U T L O O K ASPA – EURO The pick-up after the CNY holiday is slower than expected and there is some pressure on the FAK rates. Depending on the current market. We have a dedicated ocean freight rate management team that constantly works with data. Shanghai Export Containerized Freight Index (SCFI) was officially launched as of October 16, 2009. For freight forwarders, streamlined processes and on-demand access to the latest information mean huge potential gains in accuracy and productivity. Import-Export transaction can be challenging if you don ’ t have a dedicated ocean freight can be the cheapest for... Rate is a one time freight rate applicable for sea or air shipment are... A lower cost side conditions carrier under a through document, an FAK– or, again, freight Logistics. 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