What Are Shipping Charges?

Freight refers to the remuneration paid by the shipper, charterer or other interested party to the transportation services provided by the carrier during sea or land transportation. There are various classifications: according to the time of payment, there are pre-shipment and arrival charges; according to the voyage, there are direct shipping fees, transshipment freight, one-way freight and two-way freight; according to the freight limit, there are minimum freight and maximum freight ,and many more. Paying freight is the primary obligation of the shipper. Normally, the ship freight is paid by the shipper. According to Article 16 (4) of the Hamburg Rules, if the bill of lading does not indicate that the freight shall be paid by the consignee, it shall be preliminary evidence that the freight shall not be paid by the consignee. In this regard, Article 69 of the Chinese Maritime Law also clearly stipulates that the shipper shall pay the freight to the carrier in accordance with the agreement. The shipper and the carrier may agree that the freight shall be paid by the consignee. However, this agreement should be stated in the transport document. The carrier's arrival freight can be insured, and the owner can also insure the freight paid. ^[1]

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The transportation industry is independent

In Western countries such as Britain and the United States,

Nature and quantity of freight

Obviously, the level of freight varies according to the type of cargo. Usually, freight rates for freight such as valuables, dangerous goods and livestock are higher, and freight such as pallets can enjoy preferential freight rates. The freight rate is higher for goods with higher value. The freight rate of low-value cargo is high; the different cargo stowage factors affect the utilization of the capacity, and the natural freight rate is also different; the freight rate of small batches of goods is usually higher than the freight rate of large batches; It also affects the utilization of space and tonnage of ships. When it will cause a large waste of capacity. Its freight rates should also be higher.

Origin and destination of freight

The difference between the origin and destination of the cargo involves the water depth of the port, the loading and unloading conditions, the level of port charges, the charging distance between ports, the length of the voyage operation time, whether it needs to pass through the canal, whether there is a gas port on the route, and the local Many factors such as oil prices affect route costs and economic benefits of operations. Obviously, those with good port and route conditions should have lower freight rates than those with poor conditions because ship operators can get better benefits at a lower cost. This will help attract more shippers.

The difference in cargo destinations may also affect the chances of re-carrying or re-leasing of subsequent voyages, as well as the level of expected freight and rent. Obviously, for those who have a good chance of re-carrying and re-leasing, the routes and destinations that expect high freight rates or rents should also have lower rates and rents than destinations with poor opportunities.

The difference between the origin and destination of the goods affects the differences in the collection and distribution conditions of the two places. Obviously, those who have good transportation and transportation conditions in the two places are more attractive to cargo owners. They measure gains and losses from the perspective of full transportation. Will definitely choose. Even if the freight rate or rent of the water transport section is higher, it is willing to accept, otherwise, even if the freight rate or the field gold of the water transport section is lower, it will be abandoned.

Freight contract cancellation and completion date

The contracting dates are different. Obviously, the market external conditions at that time will be significantly different, and the market supply and demand situation will be different. Therefore, the contracting date and the contracting date will affect the freight rate or the rent.

The effect of different contract dates on freight rates and rents in the immediate market is particularly obvious. The current freight rates or rents obviously depend on the prevailing market conditions. As for the termination of the contract, it depends on the operator's ability and Judgment and prediction through experience. To be sure, market conditions during the cancellation period will definitely affect the level of freight or rent during the contract period.

In addition, the length of the contract is different, which obviously also affects the level of freight or rent. As everyone knows. The freight rates or rent negotiated by long-term transportation contracts or charter parties are usually lower than short-term contracts.

As for the loading preparation completion date, it reflects the urgent need of the shipper or charterer for the required vessel. If the shipper or charterer hopes to load the goods at an early date, the more difficult it is to find a suitable carrier or lessor, they must be willing to pay a higher freight rate or rent, and the shipowner will certainly take some measures to satisfy the consignment. The requirements of the person or the charterer, such as speeding up the loading and unloading speed or speeding up the speed of the air navigation vessel, so as to rush to the loading as soon as possible. And pay a certain price for this, so the freight or rent negotiated between the two parties must be high.

Freight ships used

Different ships are used, their seaworthiness and cargoability are different, so freight rates or rents should be different; different ships are used, their technical conditions, safety and security conditions are also different, so it is often internationally based on whether they hold the class To determine the freight rate or rent and insurance premiums; the use of ships is different. Their cost components are also different. Therefore, freight rates or rents directly related to costs must also be different.

Freight competitors

Under the conditions of a market economy, the number of competitors, their strength, and their strength in the market position have a great impact on the rate of freight or rent. As mentioned earlier, under monopolistic market conditions, freight rates or rents are relatively stable, but under conditions of free competition with many competitors. The strong pay attention to defeating the weak by manipulating the price or rent, of which the competitive means of price reduction is particularly common.

In the transportation industry, competitors not only have different shipping operators (lessees or lessors), but also involve competition between shipping operators and other shipping modes. They each adjusted their freight rates and rents to ensure that they could obtain the largest share of freight. Competition between various forms also leads to high levels of rebates.

Freight other factors

These include the constraints and effects of relevant regulations. Constrained and affected by agreements with other operators, relationships with shipper groups or trading groups, and the effects of expected exchange rate changes.

As we all know, the shipping industry, especially the international shipping industry, has been increasingly interfered and protected by governments of various countries, so various government measures will affect the level of freight freight or rent. For example, more and more governments control or exert influence on the freight rate of certain routes; operating subsidies in some countries help reduce freight charges and encourage competition with rivals.

In certain areas where competition is fierce and evenly matched. In order to prevent the economic losses caused by competition among many competitors in the transportation industry, they often negotiate to reach a uniform freight rate standard between the contracted transactions.

On the other hand, some transportation industry groups or trade groups protect the interests of their members. Often, members are restricted from accepting inappropriate freight rates or rents to resist arbitrary price reductions by shipping operators.

In the period when the exchange rate fluctuates greatly, in order to avoid the economic loss caused by exchange rate risks, the operators of the transportation industry often have to consider it when formulating freight rates and rents, or add special provisions in the annex to the contract.