Freight of All Kinds

Freight of All Kinds in International Trade

Meaning of FAK (Freight of All Kinds), according to the Dictionary of International Trade (Global Negotiator): Freight rate applicable to all types of goods and therefore is not restricted to a particular commodity. FAK freight rates are quoted primarily by undercarriers to consolidators (NVOCCs and air freight consolidators) who fill shipping containers with different kinds of cargoes received either from different shippers or for different consignees or both. While the consolidator may charge its clients on a commodity-specific basis, it pays the undercarrier a predetermined FAK rate.