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There are many unusual terms in the freight transportation industry that are best understood in advance. Freight is the fee charged for transporting goods. International laws and agreements are taken into account. Dragon Logistics specializes in freight-based shipping. We offer competitive prices for our services to help everyone.
Main Types
Now that we’ve defined freight in logistics, it’s time to familiarize yourself with its different types. These depend on the type of transport used for delivery. There are sea freight and air freight. Each type will be discussed in more detail below.
Sea Freight
As the name suggests, delivery is handled by sea transport. Simply put, your order will be shipped by ship. The cost will depend on the route and the weight of the cargo. Any additional costs incurred by the shipowner will be subject to additional charges. This may be due to increased fuel prices, difficulties with paperwork, etc.
The advantages of this delivery method include:
- goods safety;
- excellent throughput;
- affordable price;
- capacity.
Delivery by sea vessel does have some disadvantages. Firstly, the lead time will be significantly longer compared to other methods. Secondly, delays due to changing weather conditions are possible. The container is delivered to the port, after which you will have to pay an additional fee for another mode of transport.
If you decide to use this delivery method, you will need to prepare the following documents:
- Packing list. This contains complete information about the goods and the loading location. A list of the rights of the order owner.
- Bill of lading. Its presence confirms that the contract was drawn up in accordance with all requirements. Therefore, the carrier is obligated to deliver the goods to the receiving location.
- Navigator’s receipt. This is required to confirm the transfer of the cargo from the carrier to the recipient.
To avoid having to handle all the paperwork yourself, contact our company, Dragon Logistics. We’ll get everything done quickly, leaving you free to focus on developing your business.
Air Freight
In this case, the cargo will be delivered by air. The rate depends on the size, weight, name, and packaging of the goods. The rate may be increased for several reasons, including:
- changes in fuel costs;
- cargo weighing more than 163 kg per cubic meter;
- the need for increased security.
To arrange air freight, you need to prepare a specific list of documents. This includes:
- packing list;
- invoice;
- waybill;
- safety data sheet;
- cargo information for a specific flight.
Our company prepares all the necessary documents, so you don’t have to navigate the entire process yourself.
The advantages of air freight include product safety and fast delivery times. However, there are also certain disadvantages. Firstly, some aircraft have cargo capacity restrictions. Secondly, not all types of cargo can be shipped by air. Thirdly, shipping costs will be significantly higher compared to other modes of transport.
Dead Freight
This is a penalty for not fully loading the vessel. The charterer must pay the dead freight to the vessel owner. The vessel owner could, however, add other goods to the container for profit.
Full Freight
This refers to the full cost of transporting the cargo. It is specified in the contract. Payment is made when the vessel is fully loaded. This means the charterer fully fulfills their obligations as specified in the contract. If you have a large order, the vessel can be fully loaded. If the cargo is small, the exact volume should be specified in the contract. This will eliminate the need to pay a penalty.
Freight Cost Calculation
Once you understand the meaning of freight, you should determine how the rate is calculated. The exact cost of transporting cargo will depend on several factors:
- distance;
- route complexity;
- cargo characteristics;
- need for additional services;
- volume of goods;
- weather conditions;
- presence or absence of epidemics;
- number of vehicles.
If the cargo is hazardous or small, additional charges will apply. The price also increases if a certain temperature regime must be maintained. Weather conditions are important. If they deteriorate, the shipowner will have to enhance cargo security, which will incur an additional charge.
The freight rate for a standard container will be lower. This is because loading and unloading is much faster. If you want to save money, choose standard container shapes. This will help you save on insurance.
Dragon Logistics has been providing logistics services for a long time. We employ top specialists in a variety of fields, allowing us to handle even the most complex and unusual orders. We have extensive experience working with Chinese manufacturers, allowing us to quickly find the products our clients are looking for. Our brokers monitor all changes in customs legislation to avoid any potential problems.
Understanding how freight works allows you to better control your expenses. This also simplifies the logistics process. Our company is well-versed in this area and is ready to provide any assistance needed.