Base Freight

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📖 Detailed Explanation

Base Freight refers to the basic charge levied by the carrier for the fundamental transportation service of goods, typically excluding various surcharges (such as Bunker Adjustment Factor, Port Congestion Surcharge, Peak Season Surcharge, etc.). It is a major component of sea, air, or land freight, generally calculated based on the weight, volume, or value of the goods (e.g., W/M, Ad Valorem). It is commonly used in bills of lading, freight manifests, and freight clauses in trade contracts. Note: Base Freight only covers port-to-port or CY-to-CY transportation, excluding loading/unloading, storage, customs clearance, etc.; it varies significantly among carriers, routes, and cargo types, and must be distinguished from surcharges to avoid omissions in quotations. It differs from 'Total Freight' in that Total Freight = Base Freight + Surcharges; it also differs from 'Lump Sum Fee,' which often includes a package of services. Foreign trade practitioners must clarify the scope of services covered by Base Freight when calculating costs to avoid extra expenses.

📝 Examples

1. According to the quotation we confirmed with the shipping company, the base freight from Shanghai to Hamburg is USD 1,200 per 20' container, but the Bunker Adjustment Factor and Low Sulphur Surcharge are charged separately. (Note: Base Freight does not include surcharges and must be calculated additionally.) 2. When signing an FOB contract, the buyer is responsible for paying the base freight and all surcharges, while the seller only needs to deliver the goods to the designated port of shipment. (Note: This clarifies the payment responsibility for base freight under trade terms.)

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