What is a Freight Rate?
The Freight Rate is the price a carrier charges for transporting cargo from one location to another. Freight rates are the core commercial variable in shipping and fluctuate significantly based on supply and demand, vessel availability, fuel costs, port charges, and global trade conditions.
Types of Freight Rates
- Per tonne — for bulk cargo (e.g., USD 15/MT)
- Per TEU/FEU — for container shipping
- Per day (hire rate) — for time charters
- Lump sum — flat rate for the voyage regardless of cargo quantity
Freight Rate Benchmarks
The Baltic Exchange in London publishes daily freight rate indices including the Baltic Dry Index (BDI) for dry bulk, Baltic Clean Tanker Index (BCTI) for product tankers, and the Freightos Baltic Index (FBX) for container rates — all closely followed by maritime professionals worldwide.
