Freight

Freight refers to the fee charged by the carrier to the shipper for providing transportation services in international cargo transport, covering modes such as sea, air, land, and multimodal transport. Usage scenarios include quotations, contract signing, letter of credit settlement, and documentation preparation (such as bills of lading and commercial invoices). Points to note: Incoterms determine which party bears the freight cost, e.g., under FOB the buyer pays freight, while under CIF the seller pays freight; the freight calculation method (by weight, volume, or cargo value) and whether surcharges are included (such as bunker adjustment factor and port congestion surcharge) must be clearly specified. Difference from "transportation charges": Freight focuses more on the main carriage charge collected by the carrier, whereas transportation charges can broadly refer to all transport-related expenses. Difference from "insurance premium": Freight does not include cargo insurance, which must be listed separately. In addition, Freight Prepaid and Freight Collect directly affect the type of bill of lading and the settlement process, and must be clearly stipulated in the contract to avoid disputes.