Freight charges are the costs paid to transport goods from one place to another. These charges cover the movement of cargo by road, rail, air, or sea and may vary based on the shipment's weight, size, distance, and transport method.
Freight charges are usually paid by the buyer, seller, or both, depending on the shipping agreement. Knowing these costs in advance helps businesses plan their shipping budget and avoid unexpected expenses.
How It Works:
- Goods are booked for transportation.
- Charges are calculated based on weight, volume, and distance.
- Additional costs may include fuel or handling charges.
- Payment is made by the shipper or consignee based on agreement.
Benefits:
- Enables movement of goods across locations
- Supports domestic and international trade
- Provides cost transparency in logistics
- Helps businesses plan transportation expenses
Example:
A company pays freight charges to transport a shipment of furniture from Delhi to Mumbai by truck.