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What is freight rate and the freight?


What is freight rate? What is the freight? What's the relationship?


1. Freight Rate


Basic knowledge of freight forwarder to understand: freight rate refers to the price of transport labor to be paid by the carrier of goods. Freight rate is the monetary expression of the value of the product transported, expressed as the price of the unit of product transported.


Marine freight rate refers to the price of goods transported by sea.


Transporting products refers to the displacement of goods in space, so the freight rate is an increasing function of the transportation distance.


The freight rate is the key factor to adjust the state of shipping market, and it is the lever to balance the capacity and transportation demand. In practice, whenever capacity exceeds demand, rates fall. When demand exceeds capacity, rates rise. In the market economy, the distribution, adjustment and development of shipping resources are completely determined by the function of shipping market and freight rate mechanism. The law of value plays a guiding role in regulating supply and demand relations and resource allocation. The average market level of freight rate mainly depends on the supply and demand of the market at that time, rather than on the subjective desire of a certain enterprise.


The basic knowledge of freight forwarder should also be known: freight rate is not only the shipping enterprise, the owner unit, but also the international freight forwarder's most concerned about the problem. To understand the basic content of freight rate theory, to grasp the law of price change and its operation mode of the market is a basic quality that must be possessed by the management and business personnel of international freight forwarding enterprises.


2. Freight


Freight is the remuneration paid by the shipper to the carrier after the carrier has carried the goods according to the contract of carriage. Or the monetary consideration paid by the owner (shipper or consignee) to the carrier for carrying the goods.


3. The relationship between freight rate and freight


When the carrier has completed the transportation task, the freight will be calculated according to the freight rate and volume. At this time, the relationship between freight rate and freight rate is relatively clear -- that is, freight rate is equal to the product of freight rate and volume.


We can use a mathematical expression to express the relationship between freight and freight rate: The mathematical expression of the basic relationship between freight and freight rate is:




Where F is freight, R is freight rate and Q is volume.


DDPFORWORLD-Professional freight forwarder in China

Do You Need Freight Forwarders? DDP for World is a full-service and shipping forwarder dedicated to assisting our clients in focusing and growing their businesses. We do DDP shipping since 2015 by handling home décor, Pet products, battery, power banks, DG cargo, general cargo and Amazon FBA forwarding service. We make your shipping easier and faster by Sea, Air, Express, Truck or Railway. If you have any questions or needs about freight forwarder, please feel free to contact us, we will serve you wholeheartedly.


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