What is freight agreement?

What is freight agreement?

Freight Agreement is a contract between a Purchaser and transport service provider for example: Carrier. The agreed rates are maintained in the Freight Agreement which is later used during charge calculation to determine the rates based on the service provided by the carrier.

What is a transport contract?

A transport contract documents all the important details of a transportation service agreement, including the obligations of both parties, shipping method, delivery times, and fees and costs.

What are freight options?

Some of the different freight options available include:

• Less Than Truckload Freight. …
• Full Truckload Freight. …
• Intermodal Rail Freight. …
• Air Freight. …
• Ocean Freight. …
• Expedited Freight.

What is a spot freight rate?

A spot rate, also called a spot quote, is a one-time fee that a shipper pays to move a load (or shipment) at current market pricing. Spot rates are a form of short-term, transactional freight pricing that reflect the real-time balance of carrier supply and shipper demand in the market.

How a Forward Freight Agreement works?

A forward freight agreement (FFA) is a financial forward contract that allows ship owners, charterers and speculators to hedge against the volatility of freight rates. It gives the contract owner the right to buy and sell the price of freight for future dates.

What do freight Traders do?

Freight traders aim to mitigate freight risk by hedging their future freight obligations using swaps or forward freight agreements (FFAs).