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Freight-of-all-kinds rate

Freight-of-all-kinds rate, also known as FAK rate, is a term used in the shipping industry to refer to a single rate that covers the transportation of various types of cargo. This rate is often used when a shipper is shipping multiple types of goods and wants to simplify the pricing process.

For example, if a shipper is shipping a mix of electronics, clothing, and furniture, they may use a FAK rate to cover the transportation of all these items. This can be more cost-effective and efficient than using separate rates for each type of cargo.

It is important to note that FAK rates can vary depending on the shipping company and the specific terms of the contract. Shippers should carefully review the details of the FAK rate to ensure they understand what is included and any potential limitations.

Overall, FAK rates can be a useful tool for shippers looking to simplify their shipping process and save on costs. By using a single rate to cover all types of cargo, shippers can streamline their logistics and focus on other aspects of their business.

Examples of FAK rates:

  • Example 1: A company is shipping a mix of perishable goods and electronics. They negotiate a FAK rate with a shipping company that covers the transportation of both types of cargo.
  • Example 2: A retailer is shipping a variety of clothing items. They use a FAK rate to simplify the pricing process and ensure they are getting the best value for their shipping needs.

For more information on Freight-of-all-kinds rates, you can visit Wikipedia.