Freight transport is one of the most demanded areas of commercial activity. With their help, the delivery of raw materials to places of production and goods to consumers is carried out. Taking into account the processes of economic globalization, all types of transport are involved in this type of service. Its lease for the purpose of delivery of goods is called freight.
What is meant by the term "freight"
In the narrow sense, the word "freight", from it. "Fracht" means the cargo delivered by the carrier on a leased vehicle, as well as the direct transportation of goods. But this term also has a broader use.
Freight implies a contractual relationship between two parties - the seller of the goods, who needs to deliver them to their destination, and the carrier chosen by him, who takes on the delivery of this cargo. At the same time, in some cases, delivery and insurance of the delivered goods is paid by the seller in advance, before the goods are sent.
But most often the payment for the freight occurs after the cargo is delivered to its destination. This implies that the seller assumes possible risks and other additional costs for the delivery of the goods. But according to the established rules, the carrier is also obliged to provide insurance in favor of the buyer for such insured events as loss and damage of the transported goods.
The party, which is called the "carrier" in the freight agreement, can be any person who, within the framework of the obligations assumed under this agreement, must ensure the timely and safe transportation of goods by any type of transport. It can be rail, road, air, sea or inland waterway, or any combination of these.
What determines the cost of freight
First of all, the cost of freight will depend on the duration of the route. It will also be influenced by the situation in the areas through which it will pass. So, in cases of international transport, the cost of freight increases if the route passes in close proximity to areas of hostilities. When the carriage is carried out by sea, its price can be increased if the ship goes through the Panama or Bosphorus Strait - the authorities of Panama and Turkey charge a rather big fee for the passage of ships through these channels. Increases the cost of freight and the use of containers for packing goods of non-standard sizes and shapes.
The cost of freight also includes the cost of loading and unloading goods at the place of departure and destination. In the event that dangerous goods are transported, a multiplying factor is applied. In addition, various international and domestic duties and taxes, as well as seasonal price fluctuations in the freight market, can affect the cost of transportation.
