Components of Freight Rates
- Tariff cargo rate: in case of sea port the rate would between port of loading and port of discharge whether for container cargo, break bulk cargo, and roll-on roll-off, for air it will be between airport of loading and airport of destination, rail from the station of loading to the delivery rail terminal etc.
- Consolidation rate: for consolidators, the rate would be from shipper’s factory or named place of pic up to the importers, warehouse, named ICD or named premises.
- Customs Clearance rate: if it involves customs clearance the rate will be based on local ports and customs authority to be added to the shipping cost.
- Handling cost: This means that the rate will include costs of the cargo handling at the terminal of arrival referred to as THC.
- Transhipment rate: If the shipment has to go through an intermediate port before reaching the destination then the rate given will have to incorporate the costs for transhipment.
- Pick-up and delivery rates: In case of air transport the rate would be from shippers named place of pick up and consignee named place of delivery.
- Disbursements and Fees: The purpose of disbursement fees is to provide coverage of charges that link to services carried out by the shipper, freight forwarder or airline prior to uplift of the air consignment. Such charges include clearance, insurance premiums and ground transportation.