FAK (Freight All Kinds)

FAK (Freight All Kinds) is a pricing approach in container shipping where a single rate applies regardless of what’s inside the container. Instead of commodity-specific rates for electronics, furniture, or machinery, everything ships at the same FAK rate per container.

How FAK Pricing Works

Traditional Commodity Rates

Different rates by product:
- Electronics: $2,500/container
- Furniture: $2,200/container
- Machinery: $2,800/container
- Textiles: $2,000/container

FAK Rate

Single rate regardless of cargo:
- ANY cargo: $2,300/container

FAK Benefits

For Shippers

• Simple, predictable pricing
• No need to classify cargo
• Easier budgeting
• Faster quoting
• Less documentation complexity

For Carriers

• Simplified rate management
• Faster booking process
• Reduced classification disputes
• Broader customer appeal

FAK vs. Commodity Rates

When FAK Works Best

Ideal Scenarios

• Mixed commodity shippers
• Frequent small shipments
• Varied product lines
• New market entry
• Simplified operations

Less Ideal When

• Shipping single high-value commodity
• Volume qualifies for commodity discount
• Cargo has special handling needs
• Specific commodity rates are lower

FAK Rate Components

What’s Typically Included

• Basic ocean freight
• Terminal handling (often)
• Standard documentation
• Equipment (standard containers)

Usually Excluded

• Fuel surcharge (added separately)
• Special equipment (reefer, OOG)
• Hazardous materials surcharge
• Inland transportation
• Customs/brokerage

FAK Rate Example

Rate Quote

FAK RATE - SHANGHAI TO LOS ANGELES
═══════════════════════════════════
Container Type    | Rate
─────────────────────────────────
20' Standard      | $1,500
40' Standard      | $2,400
40' High Cube     | $2,500
─────────────────────────────────
Plus fuel surcharge (current: 28%)

Excludes:
- Inland charges
- Terminal fees (origin/destination)
- Documentation
- Special handling
═══════════════════════════════════

FAK Exclusions

Commodities Often Excluded from FAK

• Hazardous materials
• Temperature-sensitive cargo
• Oversized/out-of-gauge
• High-value goods
• Restricted items
• Personal effects

Special Handling Cargo

These may NOT qualify for FAK:
- DG (Dangerous Goods) - separate rate
- Reefer cargo - specialized
- OOG cargo - custom quoted
- Vehicles - Ro-Ro rates

Negotiating FAK Rates

Volume Considerations

• Higher volume = better FAK rate
• Annual commitments help
• Mix of lanes improves negotiation
• Consistent business valued

Rate Structure

FAK Tiers Example:
- Tier 1 (1-10 containers/month): $2,500
- Tier 2 (11-25 containers/month): $2,300
- Tier 3 (26+ containers/month): $2,100

FAK in Contracts

What to Include

• Specific lane coverage
• Container types included
• Volume commitments
• Rate validity period
• Surcharge caps
• Excluded commodities

Contract Language

"FAK rate of $2,300 per 40' container
applies to all general cargo shipments
from Shanghai to Los Angeles.

Excluded: DG, reefer, OOG, vehicles,
personal effects, and prohibited items.

Valid: Jan 1 - Dec 31, 2026
Subject to fuel surcharge at published rates."

FAK vs. Named Account Rate

Named Account

• Customer-specific pricing
• Based on your volume/history
• May include FAK structure
• Often better than market

Market FAK

• Standard rate to all customers
• No volume commitment
• Published or quoted
• Starting point for negotiation

Industry Usage

Common in

• Liner shipping (container)
• NVOCCs
• Freight forwarders
• 3PLs

Less Common in

• Bulk shipping
• Tanker markets
• Project cargo
• Specialized logistics