The term freight is defined in the dictionary as “the price determined by the party that will carry all of the cargo, goods and goods taken on board, by sea or river, in order to transport the cargo from one region to another in international trade”. Its English equivalent is known as “Freight”. It can be translated into Turkish as “Shipping Cost”.
Freight is defined in foreign trade language as “the service fee paid to the carrier company for cargoes by sea transportation”. Today, with the activation of all transportation areas, it has turned into the phrase “The fee requested for the transportation of the loads loaded by any transportation route and vehicle”. Brief explanation of this concept; As a result of the interest and care shown during loading and transportation, additional payment other than the price is included in the primate snatch. In our article, we have compiled all the details about freight for you.
HOW TO CALCULATE FREIGHT PRICE?
The answer to the question of what is the freight price and how is it calculated includes detailed conditions. Various transportation costs are determined according to the container occupancy rate, the type of cargo to be transported and the countries to be transported. While calculating, details such as weight, volume, pallet detail, lademeter detail, door-to-door transportation, port-to-port transportation, port-to-door transportation, domestic transportation and international transportation give you the most accurate calculation. The calculation formula contains many details. Calculations should be followed instantly, as many values and situations will be taken into account while calculating. Exchange rate fluctuations, political processes and economic processes can affect the account.
For calculation, you can choose Naklico for fast and accurate transportation solutions by entering your information in the Freight Calculation Tool on Naklico. If you wish, you can come together and work with Naklico’s experienced teams for your domestic transportation processes within the borders of Turkey or for your international rail, air, sea, river and road transportation processes. By using our calculation tool, you can get accurate and fast quotes and manage your shipping processes safely.
FREQUENTLY ASKED QUESTIONS
We need many details when calculating freight. We should have knowledge and ideas not only about calculation but also before and after. Above, we have answered the questions of what is generally and how to calculate, now we will explain all the details down to the finest detail. In this section where we compile frequently asked questions, approved and domestic freight, contracts, contract details, reasons to invalidate the contract, support and incentives, terms, calculation types such as air, sea and road with different transportation areas, elements, partial, insurance calculation, insurance We will answer many questions you may have, such as requirements, insurance details.
Among the frequently asked questions, from insurance to government support and incentives, from approved and domestic varieties to contract details, from road, railway and airway calculation differences to road, rail and air transport details, from the parties of the contracts to terms such as CAF, BAF, IMCO, WRS. We have compiled the answers to the details for you. For your detailed questions and information requests, we would like to remind you that you can reach fast and accurate shipping information with Naklico.
WHAT IS A APPROVED AND DOMESTIC FREIGHT INVOICE?
Approved freight, also known and defined as consular invoice, is the obligation to accept the original invoices at the customs points of import by the consulates of the country in the import communication. If domestic freight; Turkish origin of the cargo to be transported. For example; In order for the value added tax added to the Customs Declaration to be complete;
– Name, surname and title of the importer,
– Turkish source of the product,
-Gross volume of the product,
– It is necessary to report the items such as delivery and payment completely.
WHAT IS A FREIGHT AGREEMENT AND WHAT ARTICLES DOES THE AGREEMENT CONTAIN?
It is the contract that determines the issue of who will pay this price within the scope of , import and export and enables the issues to be determined easily. With this description, “Freight Collect” is the item that declares that the payment will be made by the imported (importer). “Freight Prepaid” stands for the conditions that determine that the price to be paid by the declared exporter is not subject to any payment by the buyer.
Articles in the contract;
The goods are suitable and suitable for the type of transport,
The mode of transport suitable for the type of transport,
Procurement of the vehicle that will transport the goods in accordance with the load and the content of the loads,
Attaching the transportation fee to a price and processing it into the document.
WHAT ARE THE SITUATIONS THAT WILL TERMINATE THE AGREEMENT?
– State seizure of transport vehicles,
– War situations,
– Seizure at customs entry and exit points (logistics points),
The contract can be terminated in some cases, such as a regret payment. In addition to + these, there is an obligation to include information such as the type, date, contact information of the carrier, the number of tonnage and quantity scale, the type of payment, the conditions in which the products will be transported, the arrival and delivery method of the product, the number of products, and the customs clearance substitution.
WHAT IS FREIGHT SUPPORT AND INCENTIVE?
This support is provided to exporting companies. The reason for this is that there is no ban on export and import of goods as a result of certain reasons. This incentive differs from country to country. Bulgaria, Romania, England, Italy and Spain, as well as Germany, Poland, the Czech Republic and Hungary are among the countries mentioned. The “Freight Support” conditions of each country differ from each other.
WHAT IS THE FREIGHT COST AND HOW IS THE CALCULATION USED?
The fee is shaped in line with certain parameters and specifies the price. In air, land, rail and sea transportation, there are also differences in calculation types as a result of the variation in the delivery time and transportation costs of the product.
In addition to these, diversity is observed in the traces of transportation modes such as , partial volume, complete container and Ro-Ro. Sea transport is one of the first options for large-volume cargoes.
-Seaway 1 cubic meter tonnage 1000 kg,
-Highway 1 cubic meter tonnage 333 kg-Airway 1 cubic meter tonnage 167 kg.
FREIGHT TERMS USED IN THE CALCULATIONS
“Freight Terms” used in both contracts and calculations are the concepts that should be known by the sector that creates its own language. To look at the most frequently used and used terms;
CAF (Currency Adjustment Factor): It is the cost that is added to the freight as a result of fluctuations in exchange rates.
BAF (Bunker Adjustment Factor): It is the cost incurred by adding the costs incurred as a result of fluctuations in marine fuel to the freight in the preferred shipping system.
WRS (War Risk Surcharge): It is the added cost for destinations where disasters such as war exist.
IMCO (International Maritime Consultative Organization): It is the risk cost added to the freight due to the dangerous substances during transportation.
WHAT IS SEA FREIGHT CALCULATION? HOW IS IT CALCULATED?
In terms of volume, maritime freight transport is the most convenient, frequently used and most ideal type of transport. While making the calculation, factors such as the volumetric weight of the transported cargo, the distance traveled and the calculation of the cargo weight and load type are taken into consideration. You can examine the example below for the answer to the question of what is the “Seaway Partial Freight Farm”. (Volume / ton x (sea freight + terminal cost)) + delivery cost.
For example, for the calculation on the Germany-Frankfurt / Istanbul line of a material with a volume weight of 10 cbm, 5 tons. Example: Freight: USD 30 W/M Example: THC : USD 16 W/M Sample Delivery Document: USD 40+ VATSolution/ (10x(30 + 16))+ USD 40+ VAT(10 x 46) + 40.4USD 500.4 Total Cost.
WHAT IS AIR FREIGHT CALCULATION? HOW TO DO THE CALCULATION?
Products that are lighter in load and easier and faster to transport are generally the target area to be transported more safely by air transport. Air transportation is the most ideal way to transport products such as valuables and historical artifacts that are heavy in price and light in load. In this calculation, first of all, attention is paid to which category the load is in. Airline calculation formula made through transfer agencies;
Calculation method of export transportation load that will reach Frankfurt city of Germany from Istanbul by air:
TK Germany- Frankfurt KG Fee: 1.10 USD
TK Bill of Lading Fee: 150 USD
Additional Expenses: 20 USD+Volume Weight (100x120x80)x 2 containers / 6000= 320 kg
Freight: 1.10 USD x 320 kg =352 USD
TK Bill of Lading Fee: 150 USD
Additional Expenses: 20 USD
Total: 352 USD + 50 USD + 20 USD = 522 USD can be sampled.
WHAT IS HIGHWAY FREIGHT CALCULATION? HOW TO DO THE CALCULATION?
The road calculation differs according to the unit of road traveled and distance. Of course, the longer the distance, the higher the price is expected. Not only the distance traveled, but also the seasonal conditions, the country of transportation and even the date of transportation change the price. The price, which also varies between countries, is charged more reasonably than Germany, Hungary and the Czech Republic. When all conditions are determined, freight forwarding agencies create the transportation cost.
WHAT IS FREIGHT INSURANCE AND HOW IS INSURANCE CALCULATED?
Freight insurance calculation formula, depending on the contents of the policy against risky situations that may occur during the journey from the exit point to the destination; It is an insurance statement that provides confidence and guarantees. The cargo carrier can also take out this insurance just like the one who receives the cargo. The insurance coverage extends the scope rather than the damage that may come, and it also insures against all the measures to be taken against the possibility of the sinking of the ship. When calculating insurance, the value of the cargo carried and the risky situations taken are directly proportional.
WHAT ARE THE ELEMENTS THAT DEFINE THE FREIGHT PRICE?
As a result of various circumstances that determine the price, different elements appear. While determining the factors such as the load not filling the container capacity, its value or the transportation of dangerous goods, the distance of the transportation network is calculated. Price differences between countries are also taken into account. For example; The price determined for the cargo transported to Germany is not the same as the cargo charge transported to countries such as Hungary or Poland.
WHAT IS PARTIAL FREIGHT?
Partial transportation, complete truck or road transportation prices are another issue that differs from country to country. Road transport, which is evaluated for European transport, works with a door-to-door delivery system. Therefore, the account costs are calculated more appropriately compared to other countries.
WHAT IS CONTAINER FREIGHT CALCULATION? HOW IS IT CALCULATED?
The container shipping calculation process takes different values depending on the container type. At the same time, whether it is full or not, the volumetric weight or the actual weight of the load are also included in this calculation part. If the container is covered with the entire load, the container is scaled with a fixed rental price. However, if aging is carried out with partial load, the transportation cost is calculated by calculating according to the volume and real weight.