OCEAN FREIGHT RATE GUIDELINES FOR SHIPPERS

This booklet is designed to acquaint the exporter with some of the considerations to be weighed when evaluating costs associated with transporting goods by vessel. It makes no attempt to cite or even to estimate specific costs. The volume and variable nature of freight rates and ancillary charges for thousands of commodities rule out such an attempt. Rather, the booklet describes the various elements related to the transportation process that should be taken into account when pricing goods for export. Since the booklet is concerned with costs, it gives special and detailed attention to ocean freight rates. It outlines the manner in which rates are established by shipping lines and conferences. It describes the more important factors that tend to influence rate levels. It also furnishes detailed information on measures an exporter may take to seek rate adjustments from shipping lines or conferences. Marine insurance is another important element of direct cost. The booklet describes the prevailing system of liability under which the shipping line assumes limited responsibility to the cargo owner for loss of or damage to his goods, and the considerations which may make it advisable for the cargo owner to obtain additional protection from a cargo insurer. Basic cargo policies and rating practices are outlined, as well as the principal factors evaluated in underwriting. There is also a brief description of procedures followed in processing insurance claims. The booklet also considers some of the less direct cost elements involved in export transportation--mainly ancillary charges either absorbed in the ocean freight rate or billed separately to the exporter by such specialists as freight forwarders or export packers. The most important of these indirect elements, documentation, is covered in some detail.

  • Corporate Authors:

    Federal Maritime Commission

    800 North Capital Street, NW
    Washington, DC  USA  20573
  • Publication Date: 1974-1

Media Info

  • Features: Appendices;
  • Pagination: 65 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00054146
  • Record Type: Publication
  • Files: TRIS
  • Created Date: May 7 2003 12:00AM