FAK, or Freight All Kinds, is a pricing method that allows various types of freight to be shipped at a flat fee, simplifying the lives of importers, exporters, and freight forwarders.
But how does FAK function? And how does it streamline logistics operations?
Keep reading to find out.
What is FAK in ocean freight?
FAK freight is a pricing strategy used in international sea freight where all types of cargo in a container are charged at the same freight rate, regardless of the specific nature of each product.
What are the advantages of FAK shipping?
Simplified pricing
Instead of calculating rates for each item, FAK uses a single rate for the entire container, making pricing easier for all parties involved.
Flexibility
Shippers can mix different types of cargo within the same container without affecting the shipping cost, allowing for more efficient use of space.
Cost savings
FAK can result in cost savings for shippers, as using a single rate may lead to better economies of scale and lower overall shipping costs.
Time savings
FAK simplifies the pricing and documentation processes, saving time for both shippers and carriers and allowing them to focus on other aspects of their business. It also streamlines the booking process with carriers.
Which items can not be shipped under FAK?
While FAK generally covers most freight types, certain items that require special handling or specific container types may not qualify.
Suppose you are shipping goods such as hazardous materials, high-value items, government or military cargo, or goods for disaster relief.
In that case, you should contact a freight forwarder or Airsupply team for a customized quote.
How do FAK and HS Code differ?
FAK shipping provides a flat rate for freight across different types of shipped goods.
However, it does not eliminate the requirement to provide accurate HS codes for each product. HS codes are crucial for determining customs duties and fees, with rates varying by product.
In essence, even when using FAK rates for freight, you must still provide the correct HS code for customs purposes. Your forwarder can assist in identifying the appropriate HS codes for your products.
What is the FAK rate in shipping?
FAK rate is a carrier’s rate classification for a consolidated cargo shipment where items of different classes (value, weight, density, etc) are shipped in a single container at a unified rate.
How can shipping FAK help your rates?
Here are some scenarios where shippers can benefit from FAK pricing and determine their shipping costs:
- Shipping freight with a low freight class– Carriers may offer better rates for low freight class shipments due to their favorable operational ratios.
- Transporting density-based cargo – Shippers dealing with density-based goods, like industrial distributors, often secure better shipping rates through negotiation.
- Mixed cargo in one freight pallet – When shipping items with different classifications, the highest freight classification determines the class of the entire pallet. Negotiating an FAK in this situationcan result in significant savings.
Explore Airsupply for effortless shipping
Handling the intricacies of international logistics requires a solution that provides simplicity, effectiveness, and trustworthiness.
By partnering with Airsupply, you can access immediate, clear pricing and be free from handling booking, customs clearance, and shipment management. All you need to do is pay the freight cost and focus on your core business.
