Freight rate

Quick Answer

Last updated: 22 June 2026Published: 19 June 2025

Source: https://en.wikipedia.org/wiki/Freight_rate

Category

Logistics concept

Reading time

1 min

Words

109

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Definition & Explanation

A freight rate is the price a carrier charges for transporting goods over a defined route, expressed per unit of measurement such as tonne, cubic metre, pallet, or TEU. Shipping lines, airlines, and road hauliers set rates based on distance, transport mode, commodity type, seasonality, and prevailing supply-and-demand conditions. Fuel surcharges (BAF or FSC), terminal handling charges, and other accessorial fees are typically itemised separately, meaning the all-in cost can differ substantially from the base rate. Shippers and forwarders distinguish between spot rates—negotiated at current market levels—and contract rates fixed for an agreed period. Contract rates provide cost predictability but lock the shipper out of any subsequent market-rate decreases.

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