Question

Discuss the basic principle and factors which govern the liner freight rate

Answer 1

Following are the basic principles of freight rate. Destination: The destination is a crucial factor for determining ocean freight rates. ... Service Charges: The additional charges levied by port authorities like the security service charges affect the ocean freight rate.

Answer 2

The basic principle and factors which govern the liner freight rate are dependent on the following

Destination

Cost of services

Dependent on the season and currency of the country

Total value of fines and the fee charged

Total terminal fees

Bunker capacity

Explanation:

• The main aspect of setting the basic principle and factors that govern the liner freight rates are dependent on the place and destination the freight liner is embarking on its journey. There is a regular services charge which is taken by the ports.
• It also depends on the the season and the currency charges for the particular destination country. If the ports are crowded and there is waiting charge and fees imposed on the freight liners.
• The terminal fees are paid by the freight liners when they embark on their routes and these are paid when they reach their final destination. The bunker capacity is the charges for fuel to be stocked in the containers

To know more about liner freight rate

Cross subsidization is the characteristics feature of the liner freight

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