Freight All Kinds (FAK)
A pricing system that combines different classes of shipments into a given classification to be transported as a single shipment at a fixed rate
When shippers have to move a variety of different items — in the thousands — on a single pallet, the freight classification of each item can sometimes lead to billing errors and time-consuming paperwork.
First introduced by the National Motor Freight Traffic Association (NMFTA), the classification splits freight into 18 different freight classes, ranging from 50 to 500, based on a variety of factors such as shipment weight, density, and the difficulty in moving the goods.
For consolidators and freight forwarders dealing with a wide range of products from different sources, the Freight All Kinds (FAK) classification simplifies things. It streamlines the shipping and invoicing process by allowing commodities of different freight classes to be classified under a single group.
Negotiated between the shipper and the freight carrier, the FAK freight rates tend to be slightly higher as it consolidates different classes of shipment into one. However, this can still translate into substantial savings since higher-class commodities are combined with lower-class goods to be transported in the same shipment at the lower cost.
The FAK system allows shippers to maintain cost-effectiveness without compromising on time, but the responsibility is on shippers to assess if an FAK-based pricing is most suited for their shipment on hand.