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Secrets of International Trading © copyright "...freight cost are computed by shipping company based on both weight and cubic size and charges the higher cost..."
Ocean Shipping In shipping your goods by sea, you can choose from different types of ocean shipping: conference lines, non-conference lines, tramp shipping lines, or the national flag lines.
Conference lines charge two different The lower rate is available to exporters who sign an exclusive patronage contract whereby they agree to use only the conference line ships for their goods on the routes served by the conference lines. Exporters who have not signed such a contract can still ship by conference line ships but at a higher freight rate.
A conference" is a group of shipping companies that have agreed amongst themselves to levy the same freight rates and to observe the same shipping conditions (e.g. liability for damage to the exporter's goods). |
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2.Non-conference lines They have their own individual freight rates - as much as 10 per cent lower than the conference ones. Bookings are accepted from any shipper so long as space is available. No exclusive patronage contracts are required.
3. Tramp Lines
4. National or Flag Lines |
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6. Ship Broker
The freight rates Which includes the cost of carrying the goods from one port to another but also the cost of loading the goods on to the ship in the port of shipment and unloading them at the foreign port. As well as any harbor charges that the ship may incur. However, the freight rate does not include certain terminal charges that may be levied by the harbor authorities against the cargo. Another type of freight rate that may be charged is free in and out (FIO) Here the exporter pays for the transporting of the goods as well as pay for the stevedoring i.e., the loading and unloading of the goods which must be completed within a certain time, otherwise, penalties, called demurrage, will be levied. With both types of freight rates, the shore-based costs of loading and unloading the cargo represent a substantial part of the ocean transportation costs. In recent times, the growing use of containers has helped reduce this cost, as well as the pilferage that sometimes takes place with traditional forms of cargo loading and unloading.
Factors that influence
the rate charged 1. The weight of the goods being shipped 2. The dimensions of the goods being shipped 3. The shape of the goods 4. Ease of damage 5. Ease of pilferage 6. Need for refrigeration or other special conditions 7. Direction of traffic Freight cost are computed by the shipping company based on both weight and cubic size and charges the higher cost. The freight charge are usually quoted at so many "$" per tone, by weight or measure, whichever is greater. A short ton is 2,000 pounds; a long ton, 2,240 pounds; a metric ton, 2,204.68 pounds. Space measurement is usually 40 cubic feet or one cubic meter.
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