Following are the basic principles of freight rate.
The destination is a crucial factor for determining ocean freight rates. In simple terms, the longer the journey, the higher is the ocean shipping rate and vice-versa.
- Service Charges
The additional charges levied by port authorities like the security service charges affect the ocean freight rate.
For certain goods, the season become a very important factor, grain and fruits transported during particular seasons will have higher cargo rate.
Presently the common denomination used for international transaction purposes is the US dollar, Fluctuations in the rate of exchange will influence the freight rate.
- Fines and Fees
In case of delay in ship reaching the port because of over-crowding, there may be a fine imposed which affects the ocean shipping rates.
- Terminal Fees
The ocean freight also depends on the fees to be paid while embarking the journey from a port and after reaching the intended destination. These fees known as terminal fees also affect ocean freight rate.
- Bunker Capacity
Bunkers are container to store the fuel. Increases in fuel the containers to their optimum capacity, it will affect the freight charges by way of the shipper having to pay more in spite of lesser quantity.