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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Global Air Cargo Sector Navigates Complexities of Specialized Shipments

Global Air Cargo Sector Navigates Complexities of Specialized Shipments

This article provides a detailed overview of the transportation of oversized and overweight cargo in air freight, including their definitions, classifications, and transportation requirements. Oversized cargo typically requires multiple air pallets, while overweight cargo is defined as any single item exceeding 150 kg. Transportation conditions vary depending on the aircraft type and airport facilities. Additionally, safety regulations regarding hazardous materials must be adhered to, particularly for vehicles containing internal combustion engines and fuel tanks.

07/29/2025 Logistics Encyclopedia
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Air Freight Vs Passenger Flights Key Differences Explained

Air Freight Vs Passenger Flights Key Differences Explained

International air freight and international flights differ significantly in transportation nature, operating entities, service targets, and cargo restrictions. International air freight focuses on cargo transportation, serves businesses, and has strict cargo limitations. International flights primarily transport passengers, serve individuals, and have detailed baggage regulations. Understanding these differences helps in choosing the appropriate transportation method, improving efficiency, and reducing costs. Choosing the right mode of transport is crucial for optimizing logistics and minimizing expenses.

01/08/2026 Logistics Encyclopedia
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Smart Shipping Cuts Costs for SF Dry Freight Exporters

Smart Shipping Cuts Costs for SF Dry Freight Exporters

SF Dry Freight is an economical trunk transportation solution for large and heavy goods, reducing costs through land transportation while offering better delivery times than regular logistics. Foreign trade companies can plan ahead, communicate with customers, and choose the appropriate transportation method based on the weight of the goods, thereby achieving a balance between cost reduction and efficiency improvement. This allows businesses to optimize their logistics strategy and maintain competitiveness in the global market.

01/20/2026 Logistics Industry Insights
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Mercurygate CSX Partner to Digitize Intermodal Transport

Mercurygate CSX Partner to Digitize Intermodal Transport

MercuryGate partnered with CSX to integrate RailPlus into its TMS, streamlining multimodal booking processes and enhancing transportation visibility. This integration optimizes transportation decisions, automates reporting and notifications, and ultimately improves profitability. The collaboration aims to drive digital transformation in multimodal transportation, providing shippers with more efficient and convenient solutions. By simplifying the complexities of intermodal shipping, MercuryGate and CSX are empowering shippers to make smarter choices and improve their overall supply chain performance.

01/20/2026 Logistics
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Guide to Safe Transport of Dangerous Goods in Supply Chains

Guide to Safe Transport of Dangerous Goods in Supply Chains

This article details the compliance requirements for dangerous goods transportation, covering aspects such as dangerous goods identification and declaration, packaging marking, documentation preparation, and comprehensive training. It emphasizes the importance of compliance in dangerous goods transportation, highlighting that even when transporting non-dangerous goods, basic knowledge of dangerous goods is essential to ensure supply chain security. Understanding and adhering to these guidelines are crucial for minimizing risks and ensuring safe and compliant transportation practices.

01/22/2026 Logistics Encyclopedia
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Global Nvoccs Optimize Shipping Operations for Higher Profits

Global Nvoccs Optimize Shipping Operations for Higher Profits

Non-Vessel Operating Common Carriers (NVOCCs) play a vital role in global transportation, facing cost control and competitive pressures. This paper explores how data-driven approaches and technology empowerment can optimize pricing, routes, and supplier management to achieve cost reduction and efficiency gains. Case studies showcase the successful application of technology. The paper also looks forward to a future characterized by intelligent, collaborative, and sustainable development trends, emphasizing the importance of innovation and customer centricity. This analysis highlights the strategies NVOCCs can employ to thrive in a dynamic global market.

01/07/2026 Logistics Industry Insights
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STB Chair Warns of US Freight Rail Service Crisis

STB Chair Warns of US Freight Rail Service Crisis

Surface Transportation Board (STB) Chairman Martin Oberman strongly criticized the “collapse” of US freight rail service and labor shortages at the RailTrends conference. He pointed out that railroad companies have significantly reduced staff in pursuit of profits, leading to train delays, embargoes, and other problems, causing significant losses to the US economy. Oberman argued that these actions prioritize profits over service. He called for strengthened regulation, increased investment, and encouragement of innovation to reshape the future of US freight rail. He emphasized the need for railroads to prioritize service and reliability alongside financial performance.

01/16/2026 Logistics Industry Insights
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Hamburg Port Braces for Disruption As Key Rail Lines Shut

Hamburg Port Braces for Disruption As Key Rail Lines Shut

The Port Authority of Hamburg, Germany, has announced the closure of several major railway lines in 2025, impacting port transportation efficiency. This shutdown will affect multiple ports and neighboring countries, prompting businesses to plan alternative strategies in advance to address transportation challenges.

08/07/2025 Logistics
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Hakata Port Boosts Cargo Efficiency Amid Global Trade Demand

Hakata Port Boosts Cargo Efficiency Amid Global Trade Demand

Hakata Port Transportation Company focuses on enhancing port logistics efficiency by leasing facilities at Fukuoka City port and optimizing vessel assignments. Through high standards of equipment maintenance, HPTC is dedicated to providing the best experience in cargo transportation, thereby promoting regional economic development.

08/05/2025 Port Encyclopedia
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