What Does Freight All Kinds (FAK) Mean?
In transportation, Freight All Kinds refers to a pricing solution that provides a flat rate for a less-than-truckload (LTL) or palletized ocean freight with multiple class or commodity codes. Freight forwarders, consolidators, logistics service providers, and large shippers can leverage this Freight All Kinds pricing approach when consolidating loads that fall under different tariffs. When applied strategically, an FAK quote can reduce complexity throughout the shipment lifecycle and may create cost savings for the shipper.
What Class Code is Freight All Kinds (FAK) Cargo?
To generate a quote for an over-the-road FAK shipment, an LTL carrier assigns a single National Motor Freight Classification (NMFC) code to the cargo. This simplifies shipping and invoicing processes and typically reduces the cost of the tariff paid for the shipment.
How is the Rate Calculated for a Freight All Kinds (FAK) Shipment?
FAK rates simplify pricing for businesses by providing a flat rate rather than quoting each individual freight class in the shipment. Each transportation provider determines how quotes are calculated. LTL carriers typically use criteria different from those of ocean freight carriers when determining the cost of an FAK shipment.
Less-than-Truckload Carriers: FAK Rate Calculations
LTL carriers typically calculate a Freight All Kinds rate by averaging the freight classes. The customer then pays the tariff for a single class, often reducing the overall cost of the shipment. However, the shipment’s overall stowability, handling, liability, and density will play a role in the final quoted rate.
Ocean Carriers FAK Rate Calculations
Freight forwarders and NVOCCs (non-vessel operating common carriers) often calculate FAK rates based on the size and type of container, as well as the current shipping lane rate. Similar to LTL carriers, overall stowability, handling, liability, and density factor into the final quoted rate for ocean freight.
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What Commodities Can Be Shipped as Freight All Kinds (FAK)?
Because FAK shipments are not governed by the National Motor Freight Traffic Association (NMFTA), carriers and shippers are responsible for negotiating the shipment terms and rate. These characteristics make a shipment ideal for FAK rates:
- Shipment includes multiple NMFC classes.
- Stowability of the freight is similar.
- Cargo liability coverage cost is reasonable.
The rate may be higher, or a Freight All Kinds rate may be too costly if the shipment meets these characteristics:
- Hazardous materials.
- High-value commodities.
- Oversized or non-standard.
- Wide-ranging product density.
How MercuryGate Helps Businesses Manage Freight All Kinds (FAK) Shipments
In the right situation, an FAK pricing strategy can benefit shippers that frequently move a variety of commodities. Less-than-truckload and full truckload (FTL) shippers are often willing and able to move loads booked at an FAK rate. MercuryGate TMS connects shippers to qualified carriers and market-relevant quotes for over-the-road and ocean freight FAK shipments.
Book and Manage Freight All Kinds Shipments with MercuryGate TMS
With a network of thousands of qualified carriers, any business can quickly find market-based rates. MercuryGate TMS makes it easy for logistics teams to increase efficiency, visibility, and profitability in their supply chain.
- Find carriers for shipments with multiple freight classes.
- Book industry-relevant shipping rates for FAK.
- Optimize FAK shipments across multiple modes.
- Track in-transit loads from origin to delivery.
- Streamline claims processes, management, and tracking.
Expand Your Advantage with Customized Solutions
Identifying how and when to consolidate goods from multiple freight classes into a single FAK shipment isn’t always easy. When it comes to planning and routing loads effectively, logistics teams need expertise that delivers value at scale. MercuryGate’s suite of solutions does exactly that.
Revolutionize your customers’ freight strategies by leveraging services that deliver added value to your operations.
- Professional Services: Technical resources for special projects and initiatives, including those meant to uncover opportunities for consolidation and efficiency.
- Customer Success: Ongoing consultative support to help guide the evolution of your transportation strategy and technology roadmap.
Get a personalized demo to explore how MercuryGate’s advanced technology solutions and network of freight transportation carriers can help optimize every shipment in your network to maximize value and reduce costs.
