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Freight, also known as “navlun” in Turkish, is the transportation service fee paid for the movement of goods from one place to another using various transportation vehicles such as ships, airplanes, trucks, and trains. The term “freight” is the English equivalent of “navlun.” Information about who will pay the freight is indicated in all transportation documents such as CMR (road transport document), AWB (air transport document), and B/L (sea transport document).

As transportation documents serve as a kind of commercial contract, the responsibility for the payment of the freight is defined on these documents, whether it belongs to the buyer or the shipper. Additionally, the party responsible for the payment of the freight is specified in the commercial invoice under the loading terms (Incoterm – International Commercial Terms). International trade involves various modes of transportation, and it is beneficial to examine who bears the cost of transportation service through two examples of these modes. One such mode is Free on Board (FOB), which signifies delivery on the ship’s deck and implies that the transportation cost belongs to the buyer. Cost, Insurance, and Freight (CIF) is a shipment method that includes the cost of goods, insurance, and transportation. It indicates that the insurance and freight costs have been paid by the sender.

HOW IS FREIGHT EXPRESSED IN TRANSPORTATION DOCUMENTS?
In international trade, when a purchase and sale agreement is made, the payment method is decided, and the responsibility for the payment of the freight is clarified. The term “Freight Collect” in transportation documents indicates that the transportation cost belongs to the buyer. On the other hand, “Freight Prepaid” is an expression that conveys that the freight cost has been paid by the sender. While the definition of freight is the same across all modes of transportation, the calculation method for each mode varies due to the parameters arising from the nature of the business. Companies engaged in import and export decide how to send their cargo based on the condition of the goods they want to send. The main modes of transportation include road, air, sea, and rail transport.

HOW IS FREIGHT CALCULATED?
To calculate freight, you first need to decide on the shipment method. The transportation cost, also known as the freight cost, varies depending on whether the goods are sent by air, sea, or road. The abbreviations used in freight calculations are essential factors influencing the transportation cost.

Bunker Adjustment Factor (BAF): Indicates that fluctuations in fuel for sea freight are included in or excluded from the transportation cost.
High Cube Surcharge: The additional fee for using a high cube container in sea transportation.
IMCO Charge: An additional charge requested for transporting hazardous goods.
Currency Adjustment Factor (CAF): Indicates that currency fluctuations are added to the freight.
War Risk Surcharge (WRS): An additional fee added to the transportation cost in case of war at the destination.

AIR TRANSPORTATION: CALCULATING FREIGHT COST
Air transportation is preferred for its short transit times. It is commonly chosen for small-volume, lightweight shipments, as well as for transporting perishable goods. When calculating air freight costs, the first step is to determine the category of the cargo. The requirements for general cargo differ from those for dangerous goods or shipments requiring a cold chain, leading to different methods of calculating freight. Whether the goods can be stacked on top of each other is another criterion considered in freight cost calculations. After clarifying all these details, a price estimate is made based on material dimensions, gross weight, and volumetric weight.

For airfreight calculations, 1 m3 is calculated as 167 KG.

ROAD TRANSPORTATION: CALCULATING FREIGHT COST
In road transportation, there are two methods of shipment: partial and complete. When calculating the freight cost for complete cargo transportation, market conditions are considered in addition to the location of departure and the destination. In partial freight calculations, the chargeable weight, also known as the weight of the cargo, is considered. Therefore, the price calculation in road transportation depends on whether the material will be transported completely or partially.

In road transportation, 1 m3 tonnage is accepted as 333 KG.

SEA TRANSPORTATION: CALCULATING FREIGHT COST
Freight was initially used in sea and river transportation and later became widely used in all modes of transportation. Sea transportation is particularly ideal for carrying voluminous cargo. The calculation of freight for sea transportation is made by considering the transportation costs of the cargo from port to port. When calculating freight, it is necessary to first determine the volumetric weight of the cargo. For cargo filling a container, the price calculation is made based on whether it is a 20-foot or 40-foot container, and for partial loads, the calculation is different.

For partial loads, the calculation is made based on pallet dimensions x container height x pallet quantity x 1000 m3. This calculation provides the total volume of the cargo. If the total volume exceeds the actual weight, the calculation is made based on volume. If the weight exceeds the volume, the weight data is taken into account.

FACTORS AFFECTING FREIGHT PRICES
Transportation is a crucial part of the logistics sector. The timely, complete, and damage-free arrival of goods is the most important performance criterion for the transportation sector. Transportation companies that provide packaging and container solutions based on the nature of the cargo, along with solution recommendations for cargo types, contribute to the goods reaching the buyer without damage. The cost of freight is among the costs reflected in the product cost for companies engaged in import and export. Therefore, in addition to the urgency of the cargo, the cost of transportation is also influential in how the goods will be transported. Therefore, it is beneficial to list the factors affecting freight prices as follows:

Origin and destination of the goods: The distance between the origin and destination of the goods affects the transportation cost. However, in locations where shipments are intensive, even if the distance is long, it is possible to talk about a lower freight cost because transportation companies consolidate shipments.
Transit time: The time it takes for the goods to be picked up from the origin point and delivered to the destination is the transit time. The longer this period, the higher the transportation cost, as it is directly proportional to time.
Volume and weight: The volume and weight of the cargo are the most important factors directly affecting freight calculation. When the shipped cargo fills a container, the freight cost calculation is made based on a complete container. If the shipped cargo does not fill a container, the calculation is made based on partial freight.
Container specifications for the shipped goods: In road and sea transportation, two different containers, 20-foot and 40-foot, are used. Additionally, for goods requiring special transportation, such as cold chain transportation, there is an additional cost for a special container. Similarly, in air and sea cargo, there is an additional cost for goods requiring special transportation.
Factors affecting freight prices are detailed to buyers and shippers by transportation companies. Thus, the sender company calculates the transportation cost by adding it to the product cost. Additionally, considering the urgency, nature, volume, and weight of the cargo, the sender decides whether to send it by road, air, or sea. The inclusion of information about the party responsible for paying the freight in transportation documents is essential in case of a dispute.

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