what is freight charges

Freight charges, also known as freight costs or freight rates, are the expenses charged by a carrier for shipping freight to a destination location. The individual who wants the goods carried from one place to another is responsible for paying the freight charges. The freight charge is calculated based on the type of mode of transportation and the distance between the pickup place and the place of destination. The shipment of goods may be transported using freight prepaid or freight collect on the basis of the incoterm rules. Freight charges are one of the most significant costs of doing business for companies that keep inventory. The shipping cost might be billed before or after the goods are delivered. Factors that influence freight charges include the form of transportation used to deliver the goods, the weight and volume of the goods, the distance between the pickup place and the place of destination, and the type of goods being shipped.