The Relationship Between Freight Rate and Shipping Cost: Key Connections and Market Impacts

The Relationship Between Freight Rate and Shipping Cost: Key Connections and Market Impacts

This article explores the definitions of freight rates and shipping costs and their interrelationship. It indicates that the freight rate represents the price of transportation labor, which directly influences the supply and demand dynamics of the shipping market. In contrast, the shipping cost is the compensation paid by the shipper to the carrier for completing the transportation of goods. The calculation of shipping costs relies on the product of freight rates and transportation volume.

07/21/2025 Logistics Encyclopedia
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Maritime Trade Key Insights on Charter Party Fixture Notes

Maritime Trade Key Insights on Charter Party Fixture Notes

This article provides an in-depth analysis of the key clauses of a Fixture Note, including vessel information, owner details, cargo description, laycan, loading and discharging ports, freight rate, deposit, loading/discharging rate, demurrage, and other relevant matters. It also offers important considerations for signing a Fixture Note, aiming to help readers better understand charter parties, reduce maritime transaction risks, and achieve their shipping objectives. The analysis focuses on practical implications for navigating the complexities of chartering agreements.

09/26/2025 Logistics Encyclopedia
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Alixpartners Expert Analyzes Freight Logistics Challenges

Alixpartners Expert Analyzes Freight Logistics Challenges

AlixPartners expert Marc Iampieri analyzes key factors impacting freight logistics, including peak season consumer trends, port labor negotiations, interest rate policies, freight rate volatility, and tariff policies. He emphasizes that companies need to strengthen risk management, optimize supply chain networks, improve operational efficiency, enhance collaboration with carriers, and embrace digital transformation to address challenges and seize opportunities. These strategies are crucial for navigating the evolving landscape and maintaining a competitive edge in the freight logistics industry.

01/07/2026 Logistics Industry Insights
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TACT Manual Standardizes Global Air Cargo Operations Amid Trade Growth

TACT Manual Standardizes Global Air Cargo Operations Amid Trade Growth

The TACT (The Air Cargo Tariff) is an air freight rate manual published by the International Air Transport Association. It addresses inconsistencies in airline rate manuals that emerged in the 1970s. TACT consists of three parts: TACT Rules, North American rates, and global rates. It covers carrier rules, charges, rates, and special provisions, providing standardized references for international freight, thereby enhancing industry efficiency.

07/28/2025 Logistics Encyclopedia
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Shenzhen To Penang Air Freight Price Analysis What You Need To Know About Costs And Flight Details

Shenzhen To Penang Air Freight Price Analysis What You Need To Know About Costs And Flight Details

This article analyzes the air freight costs and flight information from Shenzhen (Bao'an International Airport) to Penang (Penang International Airport). It provides detailed information on the rates for various types of goods, flight schedules, cost components, and important considerations, serving as a practical reference for readers with cross-border transportation needs.

07/28/2025 Logistics
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Container Shipping Rates Jump As Demand Rebounds

Container Shipping Rates Jump As Demand Rebounds

International shipping container freight index has been rising recently, with several shipping companies announcing price increases. Experts attribute this round of price hikes to long-term contract negotiations and expectations of demand recovery, but the actual freight rate trend still depends on market supply and demand. It is expected that the freight rate index will decline in the first quarter, and is likely to stabilize and rebound in the second quarter, but the probability of a surge is low. All parties in the market should respond rationally and jointly maintain market stability.

12/30/2025 Logistics Industry Insights
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