Freight Rate

Shipper choose sea freight over other shipping method due to these reasons except

• Fewer restriction

• Bigger capacity

• Speed

• Low emission

Dead freight is charged for

• the value of the cargo

• bringing back the refused consignment

• breaching of contract

• delivery of goods

Ad valorem freight is defined as freight

• before delivery of goods

• for bringing back the refused consignment

• due to unavoidable situations of delivery

• based on value of the cargo

Factors affecting the fixation of conference liner rates include:

• Port condition

• Market condition of cargo

• Volume of cargo

• Special features of cargo

Characteristic of Full Container Load (FCL) include the following except

• shipment used the entire container

• shipments share container space with other goods

• shipper pay a flat fee for the entire container

• for cargo loads large enough to fill 20' or 40' shipping container

The benefits of shipping Full Load Container (FCL) are

• save on inventory cost

• Faster

• Less potential for damage

• save money on smaller shipments

This type of delivery usually applied when warehouse is particularly busy or lacks the necessary equipment to do a fast unload

• Live delivery

• Drop delivery

Characteristics of Less than Container Load (LCL) include the following except:

• Container is loaded and sealed at the factory and unloaded when it reaches the destination warehouse

• Sometimes called Groupage Shipments

• Calculated primarily by volume

• Shipment for cargo loads not large enough to fill a full 20ft or 40ft shipping container

The drawbacks of shipping Less than Container Load (LCL) include:

• Damage potential

• Longer transit time

• higher inventory cost

• expensive for small shipment

Charges at Container Freight Station (CFS) on LCL shipping can be very significant because of

• cost of picking up shipment

• cost of the sea journey

• require significant machine and manpower