Definition
Freight refers to either the sending of goods or the goods themselves. It can also mean the charge for sending goods. You pay freight for the freight of your freight. [1]
A freight tariff is a published set of rates for transportation and distribution services. [2]
With a freight-all-kinds (FAK) rate, a mixture of different goods are delivered in a combination to a single or limited number of destinations. Rather than determine the classification and rate for each product, an average rate is applied for the total shipment. This simplifies paperwork associated with the bill of lading and freight bills.
Under a cost insurance freight (CIF) contract, the risk of loss or damage to goods is transferred to the buyer once the goods have passed the ship’s rail. But the seller has to pay the expense of transportation for the goods up to the port of destination, including the expense of insurance. [2]
Cost and freight (CFR) is the same as cost insurance freight except the seller is not responsible for risk or loss at any point outside the factory. [2]
Uniform freight classification (UFC) is a system that allows the grouping of related goods into specific rate categories. These ratings are based on handling characteristics, bulk, value, and perishability of the product. They are used as the basis for standardized rates for classes of goods.
References
- vocabulary.com/dictionary/freight
- American Marketing Association, AMA Dictionary.