What is Freight? How is it Calculated? What is a Freight Contract? How much can a Freight Invoice be?

What is Freight? Freight refers to the cost of transporting goods via sea, land, air, or rail. It is an essential part of international trade, ensuring products move efficiently from one location to another. The term is often used interchangeably with "shipping charges" or "transportation fees."

How is Freight Calculated?

Freight charges depend on several factors, including:

• Weight and volume of the cargo

• Distance and transportation mode (sea, air, land, or rail)

• Market conditions and fuel costs

• Additional costs such as insurance, storage, and handling fees

For instance:

• Sea freight is calculated based on container type and fuel costs.

• Air freight depends on volumetric weight and fuel surcharges.

• Land freight varies by truck type and toll charges.

What is a Freight Contract?

A freight contract is a legal agreement between a shipper and a carrier outlining the terms of transportation, including:

• Freight rates and payment terms

• Delivery schedule

• Liability for damages

• Insurance coverage

There are two main types of freight contracts:

1. Charter Freight Contract – Full or partial lease of a transport vessel (used mainly in maritime shipping).

2. General Freight Agreement – Standard shipping agreements used in land, air, and rail transportation.

How Much Can a Freight Invoice Be?

The cost of a freight invoice depends on the shipment’s size, distance, and transport method. Freight invoices include:

• Freight charges

• Customs duties and taxes

• Additional service fees (such as warehousing or packaging)

For a specific freight cost estimate, contacting logistics providers or checking online freight calculators is recommended.