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]
cargo ship transporting freight
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. [2]
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]
Under a free alongside ship (FAS) contract, the seller must place goods alongside, or available to, the vessel at the named port of shipment and pay all charges up to that point. The seller’s legal responsibility ends once he or she has obtained a clean wharfage receipt. This term can be used only for sea or inland waterway transport. See also free on board (FOB). [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. [2]
References
- vocabulary.com/dictionary/freight
- American Marketing Association, AMA Dictionary.