Freight Charges Glossary - Freight Filter (2024)

We are going to describe Freight Mode Charges: Ocean, Air and Road. We are going to start by describing Ocean Freight Surcharges.

We are going to categorize them in three sections: Freight, FOB and DDU.

AbbrNameDescriptionAppliedLSCLOW SULPHUR CHARGE It is a surcharge for vessels operating in the European Union area. Freight Charges Glossary - Freight Filter (1)FCL: per-container

Freight Charges Glossary - Freight Filter (2)LCL: per-w/m

Freight Charges Glossary - Freight Filter (3)Import / Export

Freight Charges Glossary - Freight Filter (4)All countries

PCCPANAMA CANAL CHARGE It is a surcharge applied to cargo transiting through the Panama Canal. Freight Charges Glossary - Freight Filter (5)FCL: per-container

Freight Charges Glossary - Freight Filter (6)LCL: per-w/m

Freight Charges Glossary - Freight Filter (7)Import/Export

Freight Charges Glossary - Freight Filter (8)USA

OCEOCEAN FREIGHT

It is the cost of shipping a container from one point to another.

Freight Charges Glossary - Freight Filter (9)FCL: per-container

Freight Charges Glossary - Freight Filter (10)LCL: per-w/m

Freight Charges Glossary - Freight Filter (11)Import/Export

Freight Charges Glossary - Freight Filter (12)All countries

SUESUEZ CANAL SURCHARGE It is a surcharge applied to cargo transiting through the Suez Canal. Freight Charges Glossary - Freight Filter (13)FCL: per-container

Freight Charges Glossary - Freight Filter (14)LCL: per-wm

Freight Charges Glossary - Freight Filter (15)Import/Export

Freight Charges Glossary - Freight Filter (16)All countries

ADEADEN GULF SURCHARGE The Gulf of Aden is in the Republic of Yemen. Shipping companies are exposed to risk due to the presence of piracy. They see their costs increased due to higher insurance premiums because of this risk. For this reason a surcharge is applied to compensate
costs. Freight Charges Glossary - Freight Filter (17)FCL: per-container

Freight Charges Glossary - Freight Filter (18)LCL: per-wm

Freight Charges Glossary - Freight Filter (19)Import/Export

Freight Charges Glossary - Freight Filter (20)Asia

BAFBUNKER ADJUSTMENT FACTOR Fuel prices are subject to major price fluctuations. For that reason, shipping companies may apply a bunker surcharge of BUC (Bunker Contribution) to compensate price fluctuations. Freight Charges Glossary - Freight Filter (21)FCL: per-container

Freight Charges Glossary - Freight Filter (22)LCL: per-wm

Freight Charges Glossary - Freight Filter (23)Import/Export

Freight Charges Glossary - Freight Filter (24)All countries

CAFCURRENCY ADJUSTMENT FACTOR If your cargo is paid in a foreign currency, the currency may be subject to exchange fluctuations. For that reason shipping companies may apply a currency surcharge to compensate exchange rate risks. It is charged as a percentage of the basic sea freight. Freight Charges Glossary - Freight Filter (25)FCL: per-cent

Freight Charges Glossary - Freight Filter (26)LCL: per-wm

Freight Charges Glossary - Freight Filter (27)Import/Export

Freight Charges Glossary - Freight Filter (28)All countries

IFPINTERIM FUEL PARTICIPATION It is an additional cost equivalent to the BAF and is applied when there is an increase in fuel prices. Freight Charges Glossary - Freight Filter (29)FCL: per-container

Freight Charges Glossary - Freight Filter (30)LCL: per-wm

Freight Charges Glossary - Freight Filter (31)Import/Export

Freight Charges Glossary - Freight Filter (32)All countries

FOBCOLCOLLECTION FEE It is the cost of collecting and delivering goods from the departure point to the depot destination. Freight Charges Glossary - Freight Filter (33)FCL: per-container

Freight Charges Glossary - Freight Filter (34)LCL: per-Kg

Freight Charges Glossary - Freight Filter (35)Import/Export

Freight Charges Glossary - Freight Filter (36)All countries

SECSECURITY FEE It is a security fee charged by ports per LCL or FCL. Freight Charges Glossary - Freight Filter (37)FCL: per-container

Freight Charges Glossary - Freight Filter (38)LCL: per-file

Freight Charges Glossary - Freight Filter (39)Import/Export

Freight Charges Glossary - Freight Filter (40)All countries

CUSCUSTOMS ENTRY It is a tax imposed by countries to protect their domestic markets against foreign products. Freight Charges Glossary - Freight Filter (41)FCL: per-file

Freight Charges Glossary - Freight Filter (42)LCL: per-file

Freight Charges Glossary - Freight Filter (43)Import/Export

Freight Charges Glossary - Freight Filter (44)All countries

DOCDOCUMENTATION It is an administration fee for preparation or handling import/ export documentation. Freight Charges Glossary - Freight Filter (45)FCL: per-file

Freight Charges Glossary - Freight Filter (46)LCL: per-file

Freight Charges Glossary - Freight Filter (47)Import/Export

Freight Charges Glossary - Freight Filter (48)All countries

OFUEORIGIN FUEL SURCHARGE The Fuel surcharge is determined by the origin country and is applied due to oil prices. It is charged as a percentage of the sea freight. Freight Charges Glossary - Freight Filter (49)FCL: per-cent

Freight Charges Glossary - Freight Filter (50)LCL: per-cent

Freight Charges Glossary - Freight Filter (51)Import/Export

Freight Charges Glossary - Freight Filter (52)All countries

OTHCORIGIN TERMINAL HANDLING It is a charge for handling containers at the port of origin or terminal before being loaded onboard a vessel. Freight Charges Glossary - Freight Filter (53)FCL: per-container

Freight Charges Glossary - Freight Filter (54)LCL: per-wm

Freight Charges Glossary - Freight Filter (55)Import/Export

Freight Charges Glossary - Freight Filter (56)All countries

DDUACIADVANCED COMMERCIAL INFORMATION It is a fee charged for additional costs of declaring cargo information in advance to Canada authorities. Freight Charges Glossary - Freight Filter (57)FCL: per-file

Freight Charges Glossary - Freight Filter (58)LCL: per-file

Freight Charges Glossary - Freight Filter (59)Export

Freight Charges Glossary - Freight Filter (60)Canada

AMAADVANCED MANIFEST FILING (CHINA & JAPAN) It is a fee charged for additional costs of declaring cargo information in advance to China and Japan authorities. Freight Charges Glossary - Freight Filter (61)FCL: per-file

Freight Charges Glossary - Freight Filter (62)LCL: per-file

Freight Charges Glossary - Freight Filter (63)Import/Export

Freight Charges Glossary - Freight Filter (64)China and Japan

AMSAMS SECURITY FEE (USA) Automated Manifest System (AMS) is a regulation that affects all ships bringing cargo into US ports. Comprised air/sea/rail modes. It is a electronic transmission system to US Customs (CBP) before the cargo arrives in the US. This is for security measures
to avoid terrorism. This fee is charged for additional costs of declaring cargo information in advance. Freight Charges Glossary - Freight Filter (65)FCL: per-file

Freight Charges Glossary - Freight Filter (66)LCL: per-file

Freight Charges Glossary - Freight Filter (67)Export

Freight Charges Glossary - Freight Filter (68)USA

Accesorial ChargesFreightCONCONGESTION SURCHARGE In some ports, the process of incoming and outgoing vessels may be delayed. That congestion brings costs and to compensate those costs an additional surcharge is applied on the sea freight. Freight Charges Glossary - Freight Filter (69)FCL: per-container

Freight Charges Glossary - Freight Filter (70)LCL: per-w/m

Freight Charges Glossary - Freight Filter (71)Import/Export

Freight Charges Glossary - Freight Filter (72)All countries

EBDEMERGENCY BUNKER DIFFERENTIAL It is an emergency expense for covering higher fuel prices than the ones that were originally anticipated. The charge is based on the size and type of the container, as well as, the destination port. Freight Charges Glossary - Freight Filter (73)FCL: per-container

Freight Charges Glossary - Freight Filter (74)LCL: per-w/m

Freight Charges Glossary - Freight Filter (75)Import/Export

Freight Charges Glossary - Freight Filter (76)All countries

ERSEMERGENCY RISK SURCHARGE It is an additional cost charged by the shipping line for handling cargo in dangerous regions including hazards, violence or piracy. The charge covers extra bunker cost, insurance coverage, and additional security measures. Freight Charges Glossary - Freight Filter (77)FCL: per-container

Freight Charges Glossary - Freight Filter (78)LCL: per-w/m

Freight Charges Glossary - Freight Filter (79)Import/Export

Freight Charges Glossary - Freight Filter (80)All countries

GRIGENERAL RATE INCREASE Used to describe an across-the-board tariff rate increase implemented by conference members and applied to base rates. Freight Charges Glossary - Freight Filter (81)FCL: per-container

Freight Charges Glossary - Freight Filter (82)LCL: per-w/m

Freight Charges Glossary - Freight Filter (83)Import/Export

Freight Charges Glossary - Freight Filter (84)All countries

HEAHEAVY LIFT An additional charge for handling heavy cargo that weighs more than the standard limit for a shipment. Freight Charges Glossary - Freight Filter (85)FCL: per-container

Freight Charges Glossary - Freight Filter (86)LCL: per-w/m

Freight Charges Glossary - Freight Filter (87)Import/Export

Freight Charges Glossary - Freight Filter (88)All countries

OOGOUT OF GAUGE SURCHARGE It is an additional charge for cargo that is out of the standard dimensions of a container and it is applied for lost slots because no other containers can be loaded. Freight Charges Glossary - Freight Filter (89)FCL: per-container

Freight Charges Glossary - Freight Filter (90)LCL: N/A

Freight Charges Glossary - Freight Filter (91)Import/Export

Freight Charges Glossary - Freight Filter (92)All countries

OWSOVER WEIGHT SURCHARGE It is charged by shipping companies for handling heavy containers that weigh more than the standard limit of a cargo. Generally applies to 20ft containers exceeding the weight of 14,000 kg tare. Freight Charges Glossary - Freight Filter (93)FCL: per-container

Freight Charges Glossary - Freight Filter (94)LCL: N/A

Freight Charges Glossary - Freight Filter (95)Import/Export

Freight Charges Glossary - Freight Filter (96)All countries

PSSPEAK SEASON SURCHARGE It is a fee applied in periods of peak demand. It is levied to all shipments that move in certain trades during the high volume periods. Freight Charges Glossary - Freight Filter (97)FCL: per-container

Freight Charges Glossary - Freight Filter (98)LCL: per-w/m

Freight Charges Glossary - Freight Filter (99)Import/Export

Freight Charges Glossary - Freight Filter (100)All countries

SPESPECIAL EQUIPMENT SURCHARGE It is an additional cost applied for Hanging Garment containers, In-Gauge Flats and Open Tops, and 45 fts because they need to be transported in a special temperature environment. Freight Charges Glossary - Freight Filter (101)FCL: per-container

Freight Charges Glossary - Freight Filter (102)LCL: N/A

Freight Charges Glossary - Freight Filter (103)Import/Export

Freight Charges Glossary - Freight Filter (104)All countries

WARWAR RISK It is an additional cost applied by shipping lines due to risk of war to compensate extra costs to bear. Freight Charges Glossary - Freight Filter (105)FCL: per-container

Freight Charges Glossary - Freight Filter (106)LCL: per-w/m

Freight Charges Glossary - Freight Filter (107)Import/Export

Freight Charges Glossary - Freight Filter (108)All countries

LWRLOW WATER SURCHARGE It is an additional cost applied by the Port of Montreal due to low water levels in the St. Lawrence River. It is applied for all shipments that transit this port. Freight Charges Glossary - Freight Filter (109)FCL: per-container

Freight Charges Glossary - Freight Filter (110)LCL: N/A

Freight Charges Glossary - Freight Filter (111)Import/Export

Freight Charges Glossary - Freight Filter (112)Canada

SEDSANTOS EMERGENCY DREDGING FEE It is an additional charge for transiting the port of Santos (Brazil) due to dredging service. Freight Charges Glossary - Freight Filter (113)FCL: per-container

Freight Charges Glossary - Freight Filter (114)LCL: N/A

Freight Charges Glossary - Freight Filter (115)Import/Export

Freight Charges Glossary - Freight Filter (116)All countries

HAZHAZARDOUS SURCHARGE It is a surcharge imposed for shipping hazardous goods. Freight Charges Glossary - Freight Filter (117)FCL: per-container

Freight Charges Glossary - Freight Filter (118)LCL: per-w/m

Freight Charges Glossary - Freight Filter (119)Import/Export

Freight Charges Glossary - Freight Filter (120)All countries

MARMARPOL SURCHARGE It is a Marine Pollution regulation in tinl_he international Convention for tinl_he Prevention of Pollution from ships in tinl_he EU. Freight Charges Glossary - Freight Filter (121)FCL: per-container

Freight Charges Glossary - Freight Filter (122)LCL: N/A

Freight Charges Glossary - Freight Filter (123)Import/Export

Freight Charges Glossary - Freight Filter (124)All countries

SMDSECURITY MANIFEST DOCUMENTATION FEE An additional cost for submitting in advance manifest declarations to US, Canadian and Mexican customs authorities. It is applied for cargo loaded on a vessel at a non-US port. Freight Charges Glossary - Freight Filter (125)FCL: per-file

Freight Charges Glossary - Freight Filter (126)LCL: per-file

Freight Charges Glossary - Freight Filter (127)Import/Export

Freight Charges Glossary - Freight Filter (128)All countries

EIS EQUIPMENT IMBALANCE SURCHARGE It is a temporary cost charged by shipping lines to compensate the cost of relocating large quantities of empty containers between countries where there is an imbalance of trade (there is no export use for those containers that had been previously imported
into those countries). Freight Charges Glossary - Freight Filter (129)FCL: per-container

Freight Charges Glossary - Freight Filter (130)LCL: N/A

Freight Charges Glossary - Freight Filter (131)Import/Export

Freight Charges Glossary - Freight Filter (132)All countries

ECAEMISSION CONTROL AREA It is the Emission Control Area by the MARPOL Protocol to reduce airborne emissions from ships. Freight Charges Glossary - Freight Filter (133)FCL: per-container

Freight Charges Glossary - Freight Filter (134)LCL: per-w/m

Freight Charges Glossary - Freight Filter (135)Import/Export

Freight Charges Glossary - Freight Filter (136)All countries

FOBBIL SHIPPING LINE BILL OF LADING Bill of Lading (B/L)is a standard document issued by the carrier and shows the details of the shipment. The Bill of Lading objective is provide proof of receipt, transport agreement and title of ownership. Freight Charges Glossary - Freight Filter (137)FCL: per-file

Freight Charges Glossary - Freight Filter (138)LCL: per-file

Freight Charges Glossary - Freight Filter (139)Import/Export

Freight Charges Glossary - Freight Filter (140)All countries

CDDCARGO DATA DECLARATION The Cargo Data Declaration is a regulation applied by the European Union for potential security and safety threats. It is a fee charged for additional costs of declaring cargo information in advance to the European Union authorities. Freight Charges Glossary - Freight Filter (141)FCL: per-file

Freight Charges Glossary - Freight Filter (142)LCL: per-file

Freight Charges Glossary - Freight Filter (143)Import/Export

Freight Charges Glossary - Freight Filter (144)All countries

CLO CARRIER LO/LO The Equipment Handover Charge (Lo/Lo). Lo/Lo stands for Lift-on Lift-off. It is only applied for costs and administration of releasing containers for import Merchant Haulage. It is not applicable for Shippers’ Own containers. Freight Charges Glossary - Freight Filter (145)FCL: per-container

Freight Charges Glossary - Freight Filter (146)LCL: N/A

Freight Charges Glossary - Freight Filter (147)Import/Export

Freight Charges Glossary - Freight Filter (148)All countries

DEMDEMURRAGE CHARGES It is a charge paid by shippers. Demurrage applies to cargo and detention applies to equipment. It is applied if the loading or unloading times agreed are exceeded. And also to damages for detention if the agreed time for loading or unloading has lapsed
and there is no demurrage days allowed. Freight Charges Glossary - Freight Filter (149)FCL: per-container

Freight Charges Glossary - Freight Filter (150)LCL: per-w/m

Freight Charges Glossary - Freight Filter (151)Import/Export

Freight Charges Glossary - Freight Filter (152)All countries

DET DETENTION CHARGES It is a charge against shippers.. It is applied to damages for detention if the agreed time for loading or unloading has lapsed and there is no demurrage days allowed. It is applied when ship arrives and cargo is not ready. Freight Charges Glossary - Freight Filter (153)FCL: per-container

Freight Charges Glossary - Freight Filter (154)LCL: per-w/m

Freight Charges Glossary - Freight Filter (155)Import/Export

Freight Charges Glossary - Freight Filter (156)All countries

HOMHOMELAND SECURITY It is an additional charge for security measures to protect the territory of the United States. Freight Charges Glossary - Freight Filter (157)FCL: per-file

Freight Charges Glossary - Freight Filter (158)LCL: per-file

Freight Charges Glossary - Freight Filter (159)Import/Export

Freight Charges Glossary - Freight Filter (160)USA

ISF IMPORTER SECURITY FILING It is a US Customs and Border Protection (CBP) regulation that requires importers to provide electronic data of the imported goods to the US customs. Declaration must be received the latest 24 hours before loading and declared before 48 hours before departure
out of the port of loading. Freight Charges Glossary - Freight Filter (161)FCL: per-file

Freight Charges Glossary - Freight Filter (162)LCL: per-file

Freight Charges Glossary - Freight Filter (163)Import/Export

Freight Charges Glossary - Freight Filter (164)USA

LLSLOAD, LASH & SECURE It is a charge for loading and secure cargo applied for the provider of the service. Freight Charges Glossary - Freight Filter (165)FCL: per-container

Freight Charges Glossary - Freight Filter (166)LCL: per-w/m

Freight Charges Glossary - Freight Filter (167)Import/Export

Freight Charges Glossary - Freight Filter (168)All countries

PIF PORT INFRASTRUCTURE FEE It is charged by the port for port infrastructure costs. Freight Charges Glossary - Freight Filter (169)FCL: per-container

Freight Charges Glossary - Freight Filter (170)LCL: N/A

Freight Charges Glossary - Freight Filter (171)Import/Export

Freight Charges Glossary - Freight Filter (172)All countries

REPREPOSITIONING COST It is an additional cost when there is multiple ports of destination, and inbound cargo exceeds the outbound cargo, and shipping companies face large quantities of empty containers. It is applied to compensate the costs of transporting these containers
to the closest hub for reuse. Freight Charges Glossary - Freight Filter (173)FCL: per-container

Freight Charges Glossary - Freight Filter (174)LCL: N/A

Freight Charges Glossary - Freight Filter (175)Import/Export

Freight Charges Glossary - Freight Filter (176)All countries

THC TERMINAL HANDLING The amount charged by the shipping company for handling containers at the port or terminal before being loaded on board a vessel. Freight Charges Glossary - Freight Filter (177)FCL: per-container

Freight Charges Glossary - Freight Filter (178)LCL: per-w/m

Freight Charges Glossary - Freight Filter (179)Import/Export

Freight Charges Glossary - Freight Filter (180)All countries

WIRWIRE LIFT An additional cost for the usage of special wire lift to lift containers onto the ground. Freight Charges Glossary - Freight Filter (181)FCL: per-container

Freight Charges Glossary - Freight Filter (182)LCL: N/A

Freight Charges Glossary - Freight Filter (183)Import/Export

Freight Charges Glossary - Freight Filter (184)All countries

DDUDFUE DESTINATION FUEL SURCHARGE The Fuel surcharge is determined by the destination country and is applied due to oil prices. It is charged as a percentage of the sea freight. Freight Charges Glossary - Freight Filter (185)FCL: per-cent

Freight Charges Glossary - Freight Filter (186)LCL: per-cent

Freight Charges Glossary - Freight Filter (187)Import/Export

Freight Charges Glossary - Freight Filter (188)All countries

DHCDESTINATION HANDLING CHARGE It is a charge for handling containers at the destination port or terminal before being loaded onboard a vessel. Freight Charges Glossary - Freight Filter (189)FCL: per-container

Freight Charges Glossary - Freight Filter (190)LCL: per-w/m

Freight Charges Glossary - Freight Filter (191)Import/Export

Freight Charges Glossary - Freight Filter (192)All countries

HQA HIGH CUBE ADDITIONAL It is a charge that may be applied when you use a High Cube container. Freight Charges Glossary - Freight Filter (193)FCL: per-container

Freight Charges Glossary - Freight Filter (194)LCL: N/A

Freight Charges Glossary - Freight Filter (195)Import/Export

Freight Charges Glossary - Freight Filter (196)All countries

CCFCONTAINER CLEANING FEE It is a charge applied for extra costs for cleaning the container. It is applicable when the container does not meet the standard of cleanliness when is returned from the customer. Freight Charges Glossary - Freight Filter (197)FCL: per-container

Freight Charges Glossary - Freight Filter (198)LCL: N/A

Freight Charges Glossary - Freight Filter (199)Import/Export

Freight Charges Glossary - Freight Filter (200)All countries

CHF CHASSIS FEE An additional cost for the use of a chassis to facilitate overland transportation. Freight Charges Glossary - Freight Filter (201)FCL: per-container

Freight Charges Glossary - Freight Filter (202)LCL: N/A

Freight Charges Glossary - Freight Filter (203)Import/Export

Freight Charges Glossary - Freight Filter (204)All countries

PPFPIER PASS FEE It is The Traffic Mitigation Fee paid by the owner of a cargo and applied during peak hours when a container arrives or leaves Los Angeles or Long Beach marine terminal by truck. Freight Charges Glossary - Freight Filter (205)FCL: per-container

Freight Charges Glossary - Freight Filter (206)LCL: per-w/m

Freight Charges Glossary - Freight Filter (207)Import/Export

Freight Charges Glossary - Freight Filter (208)All countries

WHA WHARfa*gE It is a fee applied by a port authority to the carrier for the usage of a port’s wharf. Freight Charges Glossary - Freight Filter (209)FCL: per-container

Freight Charges Glossary - Freight Filter (210)LCL: per-w/m

Freight Charges Glossary - Freight Filter (211)Import/Export

Freight Charges Glossary - Freight Filter (212)All countries

ONCONCARRIAGE It is a charge for moving a container after is unloaded at the port of discharge. It is applied for inland movement service. Freight Charges Glossary - Freight Filter (213)FCL: per-container

Freight Charges Glossary - Freight Filter (214)LCL: per-Kg

Freight Charges Glossary - Freight Filter (215)Import/Export

Freight Charges Glossary - Freight Filter (216)All countries

DES DESTINATION CHARGES It is a charged applied to the place which cargo is consigned or where the cargo is turned over to the consignee or agent. Freight Charges Glossary - Freight Filter (217)FCL: per-container

Freight Charges Glossary - Freight Filter (218)LCL: per-w/m

Freight Charges Glossary - Freight Filter (219)Import/Export

Freight Charges Glossary - Freight Filter (220)All countries

Freight Charges Glossary - Freight Filter (2024)

FAQs

What are freight charges details? ›

Freight charge, also known as freight rate, is the amount paid to a carrier company for the transportation of goods from the point of origin to an agreed location. The freight charge is calculated based on the type of mode of transportation and the distance between the pickup place and the place of destination.

What costs are included in freight charges? ›

Common Freight Costs and Freight Charges
  • Cargo Insurance.
  • Customs Bond.
  • Booking Fee.
  • ISF Filing.
  • Container Fumigation Fee.
  • Pickup Fee.
  • Customs Duty (at Origin)
  • Terminal Handling Charges.

What is the code for freight charges? ›

The HSN code for freight charges is 9965 and GST rate is 18%.

What is CCF in shipping terms? ›

Container cleaning fee (CCF): This is the cost for cleaning a container if it does not satisfy standards when a customer returns it. Container fumigation fee: This charge applies before pickup, onboard a ship or in the port.

How to explain freight charges to customers? ›

One strategy to consider is providing real-life examples or case studies to illustrate shipping costs. Sharing specific scenarios can help customers see how shipping costs are calculated based on factors like: Distance. Weight.

How do I estimate freight charges? ›

How are trucking freight rates calculated? Trucking rates are calculated on a per-mile basis. First, take the mileage between the starting and destination points. Then divide the total rate by the number of miles between destinations to get your trucking freight rate.

What goes into freight costs? ›

Freight Shipping Rates Are Calculated Based On: Supply and demand in your freight's origin. The type of equipment (trailer) you need. The urgency of your shipment.

What is the difference between shipping charges and freight charges? ›

Freight costs often depend on the weight, volume, and distance. There's a lot of emphasis on optimizing load and routes to keep costs down. In general, shipping pricing can be influenced by a wider range of factors, including the mode of transport, speed of delivery, and the nature of the goods being shipped.

Should freight charges be included in cogs? ›

Since this is the case, companies typically consider expenses relating to transporting the goods from seller to buyer as part of the cost of goods sold (COGS) section in the income statement. You can record this freight expense under COGS by calculating the total amount paid by the company to ship goods to customers.

What are freight terms? ›

A freight term identifies how transportation costs are calculated. The default freight terms of Sterling Order Management System are: Cost Insurance and Freight (CIF) - The freight cost is completely paid by either the Seller, the Enterprise, or the Hub.

How do you record freight charges? ›

Record the freight charge on the financial statements: The freight charge needs to be listed as a direct cost under the cost of goods sold on the income statement. It should also appear as a decrease in the inventory account on the balance sheet.

What is the unit of freight charges? ›

Land Freight

This rates is calculated in 100s of kg, with a maximum weight/measurement ratio of 1000 kg: 3 CBM; if the volume of the goods exceeds this ratio (1:3) the freight cost for the unit is obtained by dividing the volume by 3.

What is CCF vs CF? ›

cf—cubic foot/feet. Ccf—the volume of 100 cubic feet. M—one thousand (1,000)

What is FOB in shipping terms? ›

FOB stands for “free on board” or “freight on board” and is a designation that is used to indicate when liability and ownership of goods is transferred from a seller to a buyer. Free on Board: Free on board indicates whether the seller or the buyer is liable for goods that are damaged or destroyed during shipping.

What is CF in shipping terms? ›

It means that the seller must pay the costs and freight necessary to bring the goods to a named port of destination and must also procure marine insurance against the buyer's risk or loss to the goods during the carriage. Description: C&F stands for cost and freight and is always stated as C&F port of importation.

Who should pay the freight charges? ›

FOB Destination, Freight Collect: The receiver of goods (the buyer) pays the freight charges upon delivery of the goods. The buyer does not take ownership or liability for the goods until the cargo gets to the buyer's premises.

What type of expense is freight charges? ›

What is Freight Expense? Freight expense refers to the price that is charged by a carrier for sending out cargo from the source location to the destination location. The expense is paid by the person who wants the goods transported from one location to another.

What is the freight charge in invoice? ›

Freight charges refer to the cost of transporting goods from one place to another. It is an essential aspect of any business that deals with the movement of goods. Freight charges are calculated based on various factors, such as the weight and volume of the goods, the distance traveled, and the mode of transportation.

Top Articles
Use Continuity to work across Apple devices
Limitation period for fraud recovery - FREE Legal Information | Legal Line
Urist Mcenforcer
Dlnet Retiree Login
Dew Acuity
Fully Enclosed IP20 Interface Modules To Ensure Safety In Industrial Environment
50 Meowbahh Fun Facts: Net Worth, Age, Birthday, Face Reveal, YouTube Earnings, Girlfriend, Doxxed, Discord, Fanart, TikTok, Instagram, Etc
Craigslist Mexico Cancun
Richard Sambade Obituary
Farmers Branch Isd Calendar
Nwi Police Blotter
Graveguard Set Bloodborne
Xm Tennis Channel
Myunlb
[2024] How to watch Sound of Freedom on Hulu
Turbocharged Cars
Urban Dictionary Fov
Superhot Unblocked Games
Trini Sandwich Crossword Clue
Vcuapi
Elizabethtown Mesothelioma Legal Question
Morgan And Nay Funeral Home Obituaries
V-Pay: Sicherheit, Kosten und Alternativen - BankingGeek
Ice Dodo Unblocked 76
Certain Red Dye Nyt Crossword
Litter Robot 3 RED SOLID LIGHT
683 Job Calls
8000 Cranberry Springs Drive Suite 2M600
1 Filmy4Wap In
Craigslist List Albuquerque: Your Ultimate Guide to Buying, Selling, and Finding Everything - First Republic Craigslist
R/Airforcerecruits
Florence Y'alls Standings
Revelry Room Seattle
Kelley Fliehler Wikipedia
Spy School Secrets - Canada's History
Autopsy, Grave Rating, and Corpse Guide in Graveyard Keeper
Craigslist Neworleans
Busted Newspaper Campbell County KY Arrests
Anguilla Forum Tripadvisor
Stewartville Star Obituaries
Sound Of Freedom Showtimes Near Lewisburg Cinema 8
Dwc Qme Database
Owa Hilton Email
Neil Young - Sugar Mountain (2008) - MusicMeter.nl
Gonzalo Lira Net Worth
Lightfoot 247
Tommy Gold Lpsg
Sdn Dds
Invitation Quinceanera Espanol
Pauline Frommer's Paris 2007 (Pauline Frommer Guides) - SILO.PUB
Latest Posts
Article information

Author: Manual Maggio

Last Updated:

Views: 6520

Rating: 4.9 / 5 (69 voted)

Reviews: 92% of readers found this page helpful

Author information

Name: Manual Maggio

Birthday: 1998-01-20

Address: 359 Kelvin Stream, Lake Eldonview, MT 33517-1242

Phone: +577037762465

Job: Product Hospitality Supervisor

Hobby: Gardening, Web surfing, Video gaming, Amateur radio, Flag Football, Reading, Table tennis

Introduction: My name is Manual Maggio, I am a thankful, tender, adventurous, delightful, fantastic, proud, graceful person who loves writing and wants to share my knowledge and understanding with you.