Freight, All Kinds Rate

Summary of Freight, All Kinds Rate

A fixed charge levied by a carrier to ship a container, trailer, car, et cetera, from one point to another, irrespective of the contents. A FAK rate supersedes class or commodity rates. The shipper, in effect, pays a flat charge to move the unit and may ship whatever he wishes up to the rated capacity of the unit. Very often conditions are imposed in FAK rates, e.g., prohibiting shipment of hazardous materials or requiring that the contents consist of three or more different commodities. The use of FAK rates may afford substantial cost savings over conventional commodity or class rates, depending upon the products involved and the shipping points.

(Main Author: William J. Miller)