FAK stands for Freight All Kinds. For example, China to the U.S. transportation quotes are usually different according to the name of the goods, and FAK means any name of the goods can be applied.
Significance of Freight All Kinds
FAK is mainly for ocean container liner, the basic principle of Freight All Kinds is that what goods are loaded in the container has nothing to do with the freight chargeable.
That is to say, there are the same voyage of the goods, regardless of the name of the goods, the weight, the value of the goods is high or low, charge a uniform rate. The essence of this is that the carrier (shipping company) spreads the estimated total cost evenly over each container to be shipped, resulting in a basic average rate.
The Freight All Kinds service helps companies streamline their logistics and transportation processes, increasing efficiency and reducing overall costs. Forwarders, on the other hand, can obtain more competitive rates for higher volumes under the FAK agreement.
FAK is a logical form of tariff in theory, because what is loaded on the ship and unloaded at the port are “containers” and not cargo, and containers occupy the same volume and area – only based on “space” freight charges. Freight is charged only on the basis of “space”.
However, the introduction of the “flat rate” has a negative impact on the transportation of low-value commodities, since low-rate cargoes are “compensated” for the difficulty of obtaining higher-rate cargoes.
This may be unacceptable to shippers of low-rate commodities.
For example:
Container liners charge the same rate for both bottled water and bottled wine, and while bottled wine shippers do not care, bottled water shippers refuse to accept this situation and are ultimately forced to charge different rates for the two types of cargo.
Therefore, in most cases today, the equalization rate actually divides the cargo into 5 to 7 rate classes.
Freight All KindsApplication Areas
The following are some common areas of application:
Retail Industry
Retailers often need to ship a variety of goods, including clothing, electronics, household goods, and so on. Using the FAK service allows them to place these different classes of goods together for transportation, increasing load factors and reducing transportation costs.
Automotive Parts Industry
Car manufacturers often need to ship a variety of different auto parts, such as engines, seats, tires, and more. With FAK services, they can combine these parts and ship them together, realizing cost savings and more efficient supply chain management.
Food and Beverage Industry
Food and beverage vendors need to transport various types of ingredients, packaging materials and finished products. Using FAK services can help them better manage the transportation of these goods, ensuring safe and timely delivery.
We specialize in ship from China to the US, and can provide ocean shipping from China to USA,air cargo from China to USA.
