What is freight?
Freight is the amount paid to the carrier for moving cargo from a given point of departure to a given point of arrival. In part-load shipments it is calculated on a chargeable unit found from weight, volume or a comparison of the two; in full-container shipments it is a lump sum per container. Terminal, storage and customs charges are not part of freight; they appear as separate items in a quote.
How is freight calculated?
Freight is calculated on the charging unit of each transport mode: first the chargeable unit is found, then it is multiplied by the unit price. In sea full-container load (FCL) the charge is a lump sum per container; loading the box with more or less cargo does not change the freight. In sea less-than-container load (LCL), weight and volume are compared and the greater is used. In air freight, volumetric weight is found by multiplying width × length × height in centimetres and dividing by 6000, and is compared with actual weight; because most express courier networks use a divisor of 5000 in their own tariff, the same parcel comes out heavier. In road part-load, the usual convention is 1 m³ ≈ 333 kg and 1 loading metre (ldm) ≈ 1,750 kg. Because these conversions can vary with the carrier's tariff, ask in writing which divisor is applied when you request a quote.
- Sea FCL: lump sum per container, provided you stay within the volume and weight limits.
- Sea LCL: revenue ton (R/T) — 1 m³ and 1 tonne are treated as equal, and the greater is charged.
- Air: kg — volumetric weight found from (width × length × height in cm) ÷ 6000 is compared with actual weight.
- Road part-load: kg, m³ or ldm — the invoice is issued on whichever comes out highest.
What is the W/M (revenue ton) rule?
W/M (weight or measurement) is the rule in sea part-load shipping that weight and volume are compared and the greater is charged. At sea, 1 m³ and 1 tonne are treated as equal, and the resulting unit is called the revenue ton (freight ton; R/T). Example: a lot weighing 4,200 kg with a volume of 7.3 m³ gives 4.2 R/T on weight and 7.3 R/T on volume; the freight is calculated on 7.3 R/T and the cargo counts as volumetric. In the opposite case, for a lot of 6,500 kg and 2.4 m³, the invoice is issued on 6.5 R/T. Most carriers apply a minimum R/T charge; that is, even a single pallet of half a cubic metre can count as a full unit. Measurement is taken on the base area and total height of the pallet: the pallet board, stretch film and any protruding packaging are included in the volume.
What costs are not included in freight?
Freight is only the transport charge; every stage the cargo spends at the terminal, in the warehouse and in customs is invoiced separately. Treating the freight figure in a quote as the total cost is one of the common mistakes in an import budget. To see the real door-to-door cost, ask for the local charges at both the origin and the destination to be listed item by item; destination-side charges in particular are often invisible at the quote stage.
- THC (terminal handling): handling between the ship's side and the yard, charged separately at origin and at destination.
- Storage: the charge for using space at the terminal or in the warehouse.
- Demurrage and detention: penalties for keeping the container beyond the free time.
- Customs broker fee, customs duties and levies.
- Document fees: bill of lading issue, cargo release. In Türkiye, a letter of the Directorate General of Customs dated November 2017 stated that customs offices will not ask for a delivery order at any stage of the process; even so, agents may invoice document items under other names.
- Inland haulage, container cleaning, ISPS, dangerous goods and refrigerated equipment surcharges.
- Cargo insurance — even when freight is paid, insurance is a separate contract.
What is the difference between prepaid and collect freight?
Prepaid freight is paid by the shipper and collect freight by the consignee; this is written on the face of the bill of lading. Which one applies is decided by the Incoterms rule in the sales contract. Under CFR, CIF, CPT, CIP, DAP, DPU and DDP the seller bears the main carriage, so the shipment goes prepaid. Under EXW, FCA, FAS and FOB the buyer arranges and pays the main carriage, and the shipment goes collect. On collect jobs the destination agent does not release the cargo before the freight is collected, so a delay in payment by the buyer directly produces storage and demurrage. Remember that the prepaid/collect split covers freight only: who bears terminal charges, customs and destination-side items must be stated separately in the contract, otherwise the invoice dispute starts at the port of arrival.
What determines the freight rate?
Freight is a market price that can change from week to week on the same route; what decides it is the ratio of vessel or aircraft capacity to demand. When capacity tightens, rates rise quickly; when empty capacity appears, they fall. On top of that come surcharges that carriers pass on as separate items. For this reason, a quote should be compared not only on the figure but also on which surcharges it includes and its validity date.
- Fuel cost: passed on separately as BAF / bunker surcharge.
- Exchange-rate movements: currency adjustment items such as CAF.
- Season and demand peaks: PSS (peak season surcharge) and GRI (general rate increase).
- Route, number of transhipments and whether the service is direct.
- Equipment imbalance: whether empty containers are available in the region.
- Nature of the cargo: dangerous goods, refrigerated, heavy or out-of-gauge cargo.
- The difference between a contracted volume commitment and the spot market.
- Longer routings caused by disruption at straits, canals and ports.
Chargeable unit and usual conversions by transport mode
| Transport mode |
Charging unit |
Usual conversion |
Is a comparison made? |
| Sea — FCL |
Container |
None; lump sum per box |
No (within weight and volume limits) |
| Sea — LCL |
Revenue ton (R/T) |
1 m³ = 1,000 kg |
Yes, the greater is used |
| Air freight |
kg |
(cm × cm × cm) ÷ 6000 |
Yes, the greater of actual and volumetric weight |
| Road part-load |
kg / m³ / ldm |
1 m³ ≈ 333 kg, 1 ldm ≈ 1,750 kg |
Yes, on the highest value |
Frequently asked questions
Is freight the same thing as the transport charge?
In practice, yes. Freight is a term from maritime trade, but today it is also used for air and road in the sense of the transport charge; on invoices it usually appears as the equivalent of "freight". Freight is not, however, the total door-to-door cost: terminal, storage, customs and document items are outside it.
Is freight subject to VAT in Türkiye?
Article 14 of the Turkish VAT Law No. 3065 grants an exemption for transit transport and for transport between Türkiye and foreign countries; freight and the document-issuing services tied to transport within that scope benefit from the exemption. Transport carried out entirely within Türkiye is not covered. Confirm with your accountant which category your own shipment falls into.
Is a volume–weight comparison also made in FCL?
No. In FCL the charge is per container; whether you put 10 m³ or 28 m³ in it, the freight does not change. The comparison matters only in part-load shipments. In FCL what needs attention is not the charging unit but the container's maximum payload and the axle weight limits that apply on the road leg.
Why are freight quotes valid for such a short time?
Because freight is a market price updated periodically according to the carrier's capacity; fuel, currency and seasonal items can be revised even within a month. For this reason a quote must state in writing its validity date, which surcharges are included and the date on which the booking is confirmed.