NAC rate, or Named Account Contract rate, is a customized freight rate negotiated between a shipping company and a specific customer, typically based on the customer’s shipping volume, routes, and long-term commitment. It often results in significant cost savings compared to other standard rates, such as spot or tariff rates.
Freight All Kinds is shorten for FAK, is a pricing and classification strategy used in the shipping industry, particularly in less-than-truckload (LTL) shipping. At its core, FAK is a simplified freight classification system that groups various types of cargo into broader categories, allowing for a more streamlined pricing structure.
Delivered at Terminal (DAT) means the seller is responsible for delivering goods to a named terminal at the buyer’s destination. This can be a port, airport, or warehouse. The seller handles all the transportation costs and risks up to that point, including unloading the goods.Once the goods are unloaded at the terminal, the buyer takes over.
Carriage and Insurance Paid To (CIP) is an international commercial term (Incoterm) where the seller is responsible for delivering goods to a specified destination in the buyer’s country, covering both carriage and insurance costs up to the point of delivery. The buyer takes responsibility for risks once the goods are handed over to the first carrier at the origin.
shipping solutions for OOG cargo are varied and depend on the nature of the cargo. The primary options include flat racks, open-top containers, and breakbulk shipping. Bulk cargo shipping methods, such as lift-on/lift-off (LOLO) and roll-on/roll-off (RORO), are also commonly used as complementary solutions when standard containerized shipping isn’t feasible.
Delivered At Place (DAP) is a shipping term under Incoterms® 2020 that defines the seller’s responsibility to deliver goods to a named destination, ready for unloading. The seller is accountable for all risks and costs associated with transporting the goods to that location, but not for unloading. This term can be used across all modes of transport.
The primary difference between 40GP and 40HC containers is their height. A 40GP container is 8 feet 6 inches tall, while a 40HC container stands at 9 feet 6 inches, giving it an extra foot of vertical space. This additional height increases the internal volume of the 40HC, providing approximately 10-15% more cargo capacity.
Standard containers, also known as dry containers, are the most commonly used type of container. They are typically made from steel or aluminum and designed for general-purpose shipping and storage. These containers are weatherproof, protecting goods from external elements like rain, dust, and wind.
CFR (Cost and Freight) is one of the 11 official Incoterms published by the International Chamber of Commerce (ICC). CFR refers to a trade term where the seller is responsible for delivering the goods onboard a vessel and covering the costs of transport to the destination port.
demurrage is a fee levied by a shipping line when the cargo remains at the port for longer than the free time stipulated in the shipping contract. Free time is essentially the grace period given to businesses to load or unload their cargo without facing penalties.
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