Freight-All-Kinds (FAK)

What is Freight-All-Kinds (FAK)?

Freight-All-Kinds (FAK) is an approach to rate making that simplifies the process by considering only the shipment weight and distance. This method is widely used in TOFC (Trailer on Flatcar) service, which involves transporting trailers or containers on a flatbed railcar.

In traditional rate making, various factors such as the type of goods, their value, and any special handling requirements are taken into account when determining the shipping rate. However, FAK simplifies this process by focusing solely on the weight of the shipment and the distance it needs to travel.

The primary advantage of using FAK is its simplicity. By eliminating the need to consider multiple factors, it streamlines the rate making process and makes it easier for both shippers and carriers to calculate shipping costs. This simplicity also allows for quicker decision-making and reduces the administrative burden associated with rate negotiations.

Another benefit of FAK is its flexibility. Since the rate is based solely on weight and distance, it can be applied to a wide range of goods, regardless of their specific characteristics. This makes it particularly useful for shippers who deal with diverse types of cargo. Instead of having to negotiate separate rates for each type of goods, they can use FAK to simplify the process and ensure consistent pricing.

FAK is especially popular in TOFC service, where trailers or containers are transported on railcars. Since the rail infrastructure is standardized, it becomes easier to apply a simplified rate structure based on weight and distance. This allows for efficient planning and pricing in intermodal transportation, where goods are moved using multiple modes of transportation, such as rail, truck, and ship.

However, it is important to note that FAK may not be suitable for all types of shipments. Certain goods may require specialized handling, have unique characteristics, or carry a higher value, which necessitates a more detailed rate structure. In such cases, a more comprehensive rate making approach may be necessary to accurately reflect the specific requirements and risks associated with the shipment.

In conclusion, Freight-All-Kinds (FAK) is an approach to rate making that simplifies the process by considering only the shipment weight and distance. It offers simplicity and flexibility, making it particularly useful in TOFC service and intermodal transportation. However, it may not be suitable for all types of shipments, especially those with specialized handling requirements or unique characteristics.