How freight is charged: ocean, air and road with examples
How sea, air and road freight are calculated: FCL and LCL with W/M, volumetric weight in air cargo, loading metres, the surcharges on top, and four steps to compare quotes.
Alper AzakoğluForeign trade consultant
3 min read
Updated:
What is freight?
Freight is the price paid to a carrier for moving goods from one place to another, by sea, air, road or rail. In international trade it shapes the quote directly, and depending on the delivery term it is either the seller’s or the buyer’s cost.
Freight is never a single number. Fuel, currency, port and document surcharges come on top of the base rate, so compare total cost.
Ocean freight: FCL and LCL
- FCL (Full Container Load): You hire the whole container; the rate is per container (20 ft, 40 ft). Sizes: container dimensions.
- LCL (Less than Container Load): Your cargo shares a container with others. The rate is W/M (weight or measurement): every cubic metre is compared with every 1,000 kg, and the larger is charged.
LCL example: cargo of 4 m³ weighing 2,500 kg. Volume gives 4 units and weight 2.5 units; the larger, 4 units, is charged. At USD 60 per unit, freight is 4 × 60 = USD 240. Figures are examples.
Air freight: volumetric weight
In air freight, the actual gross weight is compared with the volumetric weight, and the larger becomes the chargeable weight. The common airline formula is length × width × height (cm) ÷ 6,000. Express couriers often divide by 5,000; ask when you request a quote.
Example: a 120 × 80 × 100 cm package weighing 90 kg: 960,000 ÷ 6,000 = 160 kg volumetric weight. The chargeable weight is 160 kg; at USD 3 per kg, freight is USD 480. Figures are examples.
Road freight: full and part loads
A full truck load (FTL) is priced per trip. Part loads (LTL) are priced on space and weight together; in Europe the common unit is the loading metre (LDM), the length of trailer floor the cargo takes. A standard trailer is about 13.6 metres. Non-stackable cargo takes more loading metres and costs more.
Surcharges added to freight
| Item | Meaning |
|---|---|
| BAF (Bunker Adjustment Factor) | Surcharge that follows fuel prices |
| CAF (Currency Adjustment Factor) | Surcharge for exchange-rate changes |
| THC (Terminal Handling Charge) | Terminal handling at the ports of loading and discharge |
| ISPS | Port security surcharge |
| Peak season surcharge | Added in busy periods |
| Documentation fee | Issuing the bill of lading or other transport document |
| Demurrage and detention | Daily charges when a container stays at the port or with the customer beyond the free days |
Watch out
A quote can look cheap because surcharges are left out. When you compare two quotes, put the same items in the same table, and check who pays destination charges under your delivery term.
Comparing freight quotes
- Ask with the same details. Origin and destination, product, HS code, packages, weight, volume, stackability and ready date.
- Get included and excluded items in writing. Especially THC, documentation and destination charges.
- Ask about transit time and transhipment. A cheap quote can be a longer route or include a transhipment.
- Check the free days. How long the container may stay at the port and with the customer decides your demurrage risk.
Plan the shipment end to end
We coordinate delivery terms, freight quotes and the shipping schedule with your forwarder and customs broker.
Frequently asked questions
Who pays the freight?
It depends on the delivery term. Under EXW, FCA, FAS and FOB the buyer pays the main carriage; under CPT, CIP, CFR, CIF and the D rules the seller does: Incoterms 2020 in one table.
What does an “all-in” rate include?
It bundles freight with some surcharges into one price. Ask in writing what is included and excluded; destination charges are often excluded.
How long is a freight quote valid?
Ocean rates change often and quotes are usually short. Keep your own quote’s validity in line with your freight quote.
Why do I pay for more than the real weight in air freight?
For light but bulky cargo, airlines charge by volumetric weight, whichever is higher. Smaller packaging directly lowers the cost.
Sources
- International Air Transport Association (IATA), cargo rating rules: iata.org
- International Chamber of Commerce (ICC), Incoterms® 2020: iccwbo.org
Author
Alper Azakoğlu
For 30 years he has worked as foreign trade consultant and foreign trade manager for manufacturers in industrial zones across Türkiye. He writes these guides from his own work in the field.