General Cargo Rates
The general cargo rate applies to a shipment of mixed products.
Specific Commodity Rates
The specific commodity rate applies to the shipment of a specific product between specified ports. It is lower than the general cargo rate. In practice, most export goods are transported under the specific commodity rate.
NES Rates
The NES rate (not elsewhere specified rate) or the NOS rate (not otherwise specified rate), sometimes referred to incorrectly as the FAK rate (freight all kinds rate), applies to a product that is not specifically listed in the tariff for a given route, that is, a product not found under the specific commodity or the general cargo classifications. The NES rate is higher than the specific commodity and the general cargo rates.
In case an exporter has a special product that is not listed in the tariff, he/she may apply with the carrier or the freight conference for a specific commodity rate for the product for the specified route. Once the product is listed in the tariff, the exporter can save considerable freight costs in future shipments of such product in the specified route.
Box Rates
Most ocean freight in modern shipping is containerized. Hence, there is a trend towards the flat rate per container for FCL (full container load) shipments, known as box rate, at times also referred to as FAK rate (freight all kinds rate), instead of the weight or measure that is commonly applied in the LCL (less than container load) shipments.
The box rate is convenient in simplifying the freight cost calculation in consignments consisting of a wide range of products. The box rate is commonly used between the ocean carrier and the NVOCC (nonvessel operating common carrier), large shipper (e.g. the giant trading company), or large importer (e.g. the chain store).
Through Freight Rates
The through freight rate is used in multimodal transport and transhipment. It covers the specified route and mode(s) of transportation to the final destination.
Conference and Non-Conference Rates
The term conference rate refers to the rate of the conference carrier. The term non-conference rate refers to the rate of the independent or non-conference carrier. The freight rate from members of a conference is uniform, but it may differ between the conferences. The non-conference rate varies among the independent carriers. The non-conference rate is lower than the conference rate.
Charter Rates
The charter rate used in the charter industry varies greatly among the charter operators. It is the lowest rate per weight or measure. The operator may offer a very low rate on a return trip in order to secure the cargo, for example, in the return trip from a voyage charter.
Freight Rate Breaks
Air carriers and some road carriers use a sliding scale of rates or a discount schedule in charging freight. The sliding scale of rates in the air freight may break at 100, 200, 300, 500, and 1000 kilograms (kgs.). As such, an air consignment of 200 kgs. to 299 kgs. has a lower rate than the 100 kgs. to 199 kgs.. The freight rate breaks in road transport may vary greatly among carriers.
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