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Freight Forwarding & Incoterms: Key Terms Explained in Detail

Discover the essential freight forwarding terms and Incoterms that define responsibilities, risks, and cost-sharing in global trade. This glossary provides clear, practical explanations to help you navigate documentation and operational decisions with confidence.

Freight of All Kinds

Last updated: December 29, 2025
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Freight of All Kinds (FAK) is a standardized freight rate applied when a carrier charges a single rate for mixed cargo types within the same container. Instead of pricing each type of commodity separately, the carrier uses one uniform rate for the entire shipment. This simplifies rate structures and makes it easier for forwarders and shippers to manage pricing, especially when dealing with diverse products.

FAK is commonly used in consolidated shipments where multiple cargo types share the same container. By applying one average rate, carriers streamline billing and reduce the complexity of calculating commodity-specific tariffs. This also helps logistics providers offer predictable pricing to customers. It eliminates the need for detailed commodity breakdowns during booking.

Using an FAK rate can provide cost advantages, especially when combining low-value and high-value goods. It helps maintain simpler pricing models, supports smoother documentation, and offers flexibility for changing cargo mixes. However, some commodities may still fall under special rules or restrictions and may not qualify for FAK. Clear communication between shippers and carriers ensures compliance.

Overall, FAK brings efficiency and clarity to containerized freight pricing. It reduces administrative workload, creates predictable cost structures, and supports multi-commodity shipping. For many logistics operations, FAK is a practical way to manage diverse cargo without complicating the freight bill.

FAQ

Frequently Asked Questions about Freight of All Kinds

Clear answers to the most common questions people have when learning about Freight of All Kinds.

Carriers use FAK to simplify pricing by applying a single rate for mixed cargo, reducing administrative work and making billing more straightforward.

Not always. Some restricted or regulated goods may require special rates, so carriers may exclude them from standard FAK pricing.

It is especially useful for shippers or forwarders handling multiple product types in one container, offering predictable and easier-to-manage freight costs.