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What does FAK often referred to by freight forwarders refer to? What are the characteristics?

sofreight.com sofreight.com 2024-05-09 11:21:14

Sunny Worldwide LogisticsIt is a logistics company with more than 20 years of transportation experience, specializing in Europe, the United States, Canada, Australia, Southeast Asia and other markets. It is more of a cargo owner than a cargo owner~

01 What is FAK


FAK is the abbreviation of Freight All Kinds, which translates as "all kinds of goods". It is the most common form of service in the freight forwarding industry, which means that goods are transported at a uniform rate regardless of the type or characteristics of the specific goods.


FAK services help companies simplify the logistics and transportation process, improve efficiency and reduce overall costs. Freight forwarding companies can obtain higher cargo volumes and more competitive prices based on the FAK agreement.


02 Features of FAK


Flexible operation:Freight forwarding companies can transport different goods together, thereby greatly improving the loading rate and utilization rate of goods. Able to better meet customer needs and provide more competitive prices.


Flat rate:The FAK service uses a uniform rate calculation method, regardless of the specific type or characteristics of the goods. This provides convenience and transparency to customers, reducing the complexity of fee negotiations and rate calculations.


Cost savings:FAK services help forwarders manage shipping costs more efficiently by allowing multiple shipments to share one shipping service and fee.


Promote sustainable development:FAK service can not only reduce the empty load rate during transportation, but also help reduce carbon emissions and promote the goal of sustainable development. This provides businesses with more sustainable shipping options in international trade.


03 The Importance of FAK


Improve transportation efficiency:Freight forwarding companies can quickly arrange cargo transportation and reduce the empty container rate. It not only improves logistics efficiency and shortens transportation time, but also ensures that goods arrive at their destination on time.


cut costs:By using FAK services, freight forwarding companies are able to achieve optimized cargo mix, thereby reducing transportation costs.


Bidding advantage:FAK can also help freight forwarding companies obtain more competitive prices and increase market share.


increasing customer satisfaction:Since FAK services can provide more competitive prices and more efficient transportation solutions, freight forwarding companies can provide customers with a better service experience. This helps enhance customer loyalty and build long-term relationships.


04 Application areas


Here are some common application areas:


Retail industry:Retailers often need a variety of merchandise, including clothing, electronics, home furnishings, and more. Using the FAK service, these different types of goods can be transported together, improving loading rates and reducing transportation costs.


Auto parts industry:Car manufacturers often need to transport a variety of different car parts such as engines, seats, tires, etc. Through FAK services, they can group these parts together for shipping, achieving cost savings and more efficient supply chain management.


Food and Beverage Industry:Food and beverage merchants need to transport various types of ingredients, packaging materials and finished products. Using FAK services can help them better manage the transportation of these goods and ensure safe and timely delivery.


05 Precautions


Although FAK has many benefits, there are things to pay attention to when using it. for example:


Cargo portfolio management:Combining different types of goods requires freight forwarding companies to have good cargo classification and management capabilities. It is very important to ensure that goods do not interfere with each other or cause damage during transportation.


Compliance and legal requirements:When using FAK services, freight forwarding companies need to comply with relevant international trade laws and regulations. This includes compliance requirements for cargo classification, customs procedures, transportation certification, and more.


Flexibility to customer needs:Although the FAK service provides flexible cargo combinations, freight forwarding companies still need to provide customized services based on the specific needs of customers. For some special types of goods, additional measures and cooperation with partners may be required to meet customer needs.