"01 What is FAK
FAK stands for Freight All Kinds, which translates to ""Freight of All Kinds"". It is one of the most common forms of service in the freight forwarding industry and represents the transportation of goods at a flat rate and regardless of the type or characteristics of the specific cargo.
FAK services help companies to simplify the logistics and transport process, increase efficiency and reduce overall costs. Forwarders, on the other hand, can obtain more competitive rates for higher volumes under FAK agreements.
02Features of FAK
Flexible operation: Forwarders can put different cargoes together for transport, thus significantly increasing the loading rate and utilisation of cargoes. It can better meet customer needs and provide more competitive prices.
Flat rate: FAK service adopts a flat rate calculation, regardless of the specific type or characteristics of the cargo. This provides convenience and transparency for customers and reduces the complexity of fee negotiations and rate calculations.
Cost Savings: By allowing multiple shipments to share a single transport service and fee, FAK services help forwarders manage transport costs more efficiently.
Driving sustainability: FAK services not only reduce empty loads during transport, but also help to reduce carbon emissions and drive sustainable development goals. This provides companies with more sustainable transport options in international trade.
03The importance of FAK
Improved transport efficiency: Freight forwarders are able to quickly arrange for the transport of goods and reduce the rate of empty containers. Not only does this increase logistical efficiency and shorten transit times, but it also ensures that cargo arrives at its destination on time.
Reduce costs: By using FAK services, forwarders are able to achieve an optimised cargo mix, thus reducing transport costs.
Competitive pricing advantage: FAK can also help forwarders obtain more competitive prices and increase market share.
Enhanced customer satisfaction: Because FAK services offer more competitive pricing and more efficient transport solutions, forwarders are able to provide their customers with a better service experience. This helps to enhance customer loyalty and build long-term relationships.
04Application Areas
The following are some common application areas:
Retail industry: retailers usually need to ship from different commodities, including clothing, electronic products, household goods and so on. Using FAK service can put these different categories of goods together for transport, increasing the loading rate and reducing transport costs.
Automotive Parts Industry: Automotive manufacturers often need to ship a variety of different auto parts, such as engines, seats, tyres, and more. With FAK services, they can combine these parts and transport them together, achieving cost savings and more efficient supply chain management.
Food and Beverage Industry: Food and beverage traders need to transport various types of ingredients, packaging materials and finished products. Using FAK services can help them better manage the transport of these goods, ensuring safe and timely delivery.
05 Considerations
While FAK has many benefits, there are things to keep in mind when using it. For example:
Cargo combination management: Combining different types of cargo together requires good cargo classification and management skills on the part of the forwarder. It is important to ensure that goods do not interfere with each other or cause damage during transport.
Compliance and legal requirements: When using FAK services, forwarders need to comply with relevant international trade laws and regulations. This includes compliance requirements for cargo classification, customs formalities, proof of carriage, and so on.
Flexibility of customer needs: Although FAK services provide flexible ways of combining cargoes, forwarders still need to provide customised services according to the specific needs of their customers. For certain special types of cargo, additional measures and co-operation with partners may be required to meet customer needs.
