Transporting or supplying goods from one place to another is not as easy as it seems. The most important factor in the shipping industry is the different freight charges. While doing business, you will need to know what are the different freight charges that will get imposed on your commodities. You also need to keep track of the goods as well as record them to avoid further confusions and losses that may arise in case you are in a tight spot. 

Being familiar with different terms and documentation will also help you avoid any types of confusion during the conveyance of your goods. Following are the details you need to know about freight charges in shipping:

What is a Freight Charge?

When a carrier transports goods from one place to another, certain charges are levied upon it for delivering the goods to its destination point, these charges are known as freight charges. While calculating freight charges, factors like the quantity of the commodities, type of transportation are taken into consideration. The travelling distance of the goods is also of major concern while laying the freight charges. You can also select the modes through which you can transport your goods. Sometimes, the volume of the commodities and dimensional weights is also considered to measure the space it is going to take in the container. 

The consignee of the goods is responsible for the prevalent freight charges. To be more precise, the one who is buying or receiving the goods is the one who gets charged for the transportations of these commodities. The seller or sender of the goods is not obliged to pay the taxes or any additional charges imposed on the commodities. His only responsibility is to pack the product and send it to its destination.

List of different freight terms:

Below is the list of freight terms that will help you get familiar with the freight charges in shipping.

Carrier 

Any individual company or corporation that transports shipments from one location to another is known as a carrier. Carriers are responsible for the transportation process.

Consignor

A consignor (also termed as the shipper) is the person or company who sends the commodity for transportation.

Consignee

The individual or business that is receiving the goods is known as the consignee.

Containers

Containers are the capacitors in which the shipments are transported.

Contract

A contract is a legal document agreed between two parties for conducting the transportation of the goods. 

Waybill

All the information about shipper, consigner, consignee, freight charges, freight weight and all the charges paid by the individual or organisation is documented in this Waybill.

Accessorial tariffs

Accessorial tariffs are charged for services like inside deliveries, residential, liftgate and other services. It is not a part of the transportation services.

Bill of Lading

This bill is a contract between a shipper and a carrier containing the information about freight, weight, terms of the agreement, shipper and consignee.

Arrival Notice

When the shipment arrives at the predetermined location the consignee receives notice of its arrival, this document is known as arrival notice.

Freight Bill

This is the most common document of shipment received by the carrier. The information declared in these documents are rates, freight, shipment terms and total charges.

Overcharge

Overcharges arise if the charges become higher than the previously agreed amount during the contract.

Cash on Delivery (COD)

Cash on delivery is a method where the carrier receives the payment from the buyer and then forwards it to the seller.

Claim

In case the commodity is damaged or lost when it is with the carrier, the buyer can file a claim requesting refund for damaged or lost goods.

Collect Terms

Collect terms state that the consignee is the one who is responsible for the freight charges.

There are a whole lot of freight charges that you need to understand for doing business in the shipping industry. If you are new to this business you can take the assistance of an agency to help you out with your transportation.