Freight (navlun) is the charge paid to a carrier for transporting a load from one point to another. It is used in sea, road, air and rail transport; the amount depends on the weight or volume of the load, the distance, the vehicle or container type and surcharges. Who pays the freight is determined by the Incoterms rule in the sales contract: in the C and D groups the seller pays, in the E and F groups the buyer pays.
What does freight cover?
The word comes from shipping, and its original meaning is the hire of a ship. Today it is used in every mode of transport for the price of the carrier's service of taking a load from point A to point B. The amount shown on the "freight" line of a quotation is usually only the main carriage charge. Port, terminal, fuel adjustment and documentation costs are added on separate lines. When comparing two quotes, the first step is to see which items the freight includes.
How is freight calculated?
The carrier compares the actual weight of the load with the weight derived from its volume and uses the greater of the two. This value is called the chargeable weight. The factor converting volume into weight varies by mode of transport:
| Mode of transport | Pricing unit | Common conversion |
|---|---|---|
| Sea FCL | Per container | Fixed price for 20' and 40' |
| Sea LCL | W/M (tonne or m³) | 1 m³ = 1,000 kg |
| Road full truckload | Per vehicle | Fixed price by route and vehicle type |
| Road groupage | kg, m³ or LDM | A frequently used value is 1 m³ = 333 kg |
| Air cargo | kg | 6,000 cm³ = 1 kg (1 m³ ≈ 167 kg) |
| Domestic parcel | Desi | Width × length × height (cm) / 3,000 |
Example: a groupage road load weighing 400 kg with a volume of 2 m³ has a volumetric weight of 2 × 333 = 666 kg; the invoice is based on 666 kg. By sea, the same load is priced as 2 W/M, because 2 m³ is greater than 0.4 tonnes. The calculation is explained in detail in LCL freight calculation.
Which surcharges are added to freight?
- BAF (Bunker Adjustment Factor): an adjustment linked to the price of ship fuel. After the 0.50% sulphur limit introduced by the IMO in 2020, on some trades it is also invoiced as a low sulphur surcharge (LSS).
- CAF (Currency Adjustment Factor): covers the exchange rate risk between the currency in which the freight is set and the local currency.
- THC (Terminal Handling Charge): the charge for loading the container onto or discharging it from the ship at the terminal; it accrues separately at the port of loading and the port of discharge.
- ETS surcharge: the EU Emissions Trading System has covered ships of 5,000 GT and above since January 2024. Because shipowners surrender allowances for 40% of their 2024 emissions, 70% of 2025 and all emissions from 2026 onwards, this item is growing on trades calling at EU ports.
- On the road: fuel adjustment, motorway and bridge tolls, RoRo or ferry charges, vehicle waiting (demurrage) charges and border crossing costs.
For the full list of sea freight items, see BAF, CAF and THC.
Who pays the freight?
The paying party follows from the delivery terms in the sales contract. Under EXW, FCA, FAS and FOB, the buyer arranges and pays for the main carriage. Under CFR, CIF, CPT and CIP, and in the D group (DAP, DPU, DDP), the main freight is for the seller's account. One detail in the C group is often overlooked: the seller pays the freight, but the risk passes to the buyer as soon as the goods are delivered on board the vessel or to the first carrier. The words "freight prepaid" on the bill of lading show that freight is paid at loading, while "freight collect" shows it is paid at destination.
In imports, freight also has a tax effect. Under Customs Law No. 4458, transport and insurance costs up to the place of entry into the Turkish customs territory are added to the customs value. For an FOB purchase, this amount is shown separately on the declaration.
Common mistakes
- Comparing quotes by looking only at the main freight; THC or destination charges may be included in one and excluded from the other.
- Declaring the product's own dimensions instead of the packed dimensions; pallet and crate volume changes the chargeable weight.
- Not declaring non-stackable cargo; a pallet that cannot take load on top is priced higher because it occupies the full height of the trailer.
- Not checking the validity date of the quote; ocean freight rates are often given for a short period, for example until the end of the month.
How does Voltim Global support this?
Since 2014, Voltim Global has carried out more than 5,000 shipments; the number of international trips completed in the last two years exceeds 1,500. In most shipments on the Russia–Akkuyu route, the road leg is combined with the Tuapse–Taşucu RoRo crossing. On such multimodal routes, international road freight quotes should show on separate lines whether RoRo, ferry and border costs are included in the freight.