What is the freight?
One of the terms frequently heard by those interested in foreign trade is freight. Freight, which is only one of the terms of maritime transport, takes its place among the topics that are curious and frequently researched. Freight is mostly used in maritime trade, but it would be wrong to say that the main usage area is maritime trade. Due to the increase in customs clearance, freight is now a term used in all international transportation services. Now, let's explore all the details about freight.
What is the freight?
Freight as a word; It means the fee that the seafarer has to pay during the transportation of the cargo to be carried on the vehicle from one place to another while in foreign trade or maritime transport. However, this term is not only used for maritime transport. Because, in today's globalizing world, foreign trade has increased considerably. For this reason , the term freight is now used in all other transportation activities such as road and air.
For this reason, freight is now a price given in return for the cargo carried and the transportation service provided. Freight depends on the rules set in maritime law. In other words, the goods transported and the prices paid are secured by the freight contract.
What is the Freight Contract?
The person who allocates part or all of his ship to the transportation activity through maritime transport is subject to the freight contract. In the freight contract;
Carrier will carry out the carriage.
The shipper confirms that the goods transported are suitable for the vehicle.
Both parties agree that freight transport will be done by sea.
That the cargo transported vehicle has the characteristics of a ship or a ship.
The parties undertake that this transportation has been made against any charge.
Another type of freight contract is called mixed freight contract. The mixed freight contract states that the party carrying the cargo undertakes to carry this load by which way. This route can be by land or by air.
With the freight contract, both the carrier and the shipper have certain obligations. It has both rights and obligations.
The carrier is obliged to provide the vehicle that enables the cargo to be transported and to be there at the given time and date. The biggest right of the carrier is to receive a freight from this journey.
The amount of freight is determined by agreement of the parties. Today, the amount of freight is determined by international conventions in order to set a certain standard.
What Should Be Included in a Freight Contract?
- Title and contact information of the shipper
- Type of goods to be transported
- Amount of tonnage
- Number of loads
- Exit and arrival points of the vehicle to be transported
- Payment method
- Mode of transport and delivery
- The date the contract was made
- Product transport condition
Freight contracts are also divided into two groups. Now let's examine the types of freight contracts.
Charter Freight Agreement
Such contracts are also considered as one of the space allocation contracts. With these contracts, the allocation of a part or all of the ship to be transported is committed. In charter freight contracts , the vehicle that will carry the load is important, not the load carried. Full or partial rental of the vehicle becomes official with contracts.
In these contracts, if the vehicle is to be partially rented, it is called a partial charter, and if it is to be rented completely, it is named as a full charter.
Kırkambar Freight Contract
In such contracts, however, the ship cannot be partially or fully leased. It is committed to transport the cargo from one port to another port by sea. The carrier can carry the transported goods at any place of the ship. There are no limitations. Products can be transported together by making an agreement with more than one company.
Cases of Termination of the Freight Contract
- Seizure of the ship by any state at home or abroad
- War and natural disaster situations
- Any of the ports of loading or arrival are under blockade.
In cases where the transported goods are prohibited in the field of import and export, the freight contract may be terminated.
How to Calculate Freight Cost?
For the calculation of the freight cost, the size, type, nature of the cargo to be transported, and the type of the vehicle to be transported are taken into consideration. The supply-demand balance in the market, the full or empty return of the transporting vehicle, and the duration of the transport are among the other criteria taken into account.
In other words, there is no clear mathematical formula or calculation for calculating the freight cost. It also varies according to the companies that will transport the goods and the companies that transport the goods.
What is Freight Invoice?
The freight bill is expressed as the fee for the transportation of the goods in sea transportation. Freight is usually a price paid by the exporter.
The document prepared and presented regarding this transportation cost is expressed as the freight invoice. A freight invoice is issued upon payment of the freight cost .
What is Freight Incentive?
Incentives given by the state through ministries in order to provide flow and vitality in domestic and foreign trade are called freight incentives. Increasing the volume of imports and exports and mobilizing the economy is one of the biggest goals. In particular , it is possible to receive a freight incentive within the scope of KOSGEB. For this, it is necessary to prepare a project and business plan in accordance with the KOSGEB format.
