What is FAK

What is FAK

01 What is FAK

FAK is an abbreviation of Freight All Kinds, translated as "all kinds of goods". It is one of the most common forms of service in the freight forwarding industry, representing that goods are transported at a flat rate, regardless of the type or characteristics of the specific goods.

FAK services help businesses streamline logistics, improve efficiency and reduce overall costs. The freight forwarder can obtain a higher volume of goods and a more competitive price according to the FAK agreement.

02 Features of FAK

Flexible operation: Freight forwarders can transport different goods together, which greatly improves the loading rate and utilization rate of goods. Able to better meet customer needs and offer more competitive prices.

Flat rate: FAK services use a flat 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 negotiation and rate calculation.

Cost savings: By allowing multiple cargoes to share a single shipping service and fee, FAK services help forwarders manage shipping costs more efficiently.

Driving sustainability: FAK services not only reduce empty load rates during transportation, but also contribute to reducing carbon emissions and advancing sustainability goals. This provides businesses with more sustainable transportation options in international trade.

03 The importance of FAK

Improve transportation efficiency: Freight forwarders can quickly arrange the transportation of goods and reduce the empty container rate. Not only improve logistics efficiency, shorten transportation time, but also ensure that the goods arrive at the destination on time.

Cost reduction: By using FAK services, freight forwarders are able to achieve an optimized cargo mix, thereby reducing transportation costs.

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

Increased customer satisfaction: Thanks to FAK services, which offer more competitive prices and more efficient transportation solutions, freight forwarders are able to provide customers with a better service experience. This helps to strengthen customer loyalty and build long-term relationships.

04 Application Fields

Here are some common application areas:

Retail industry: Retailers usually need to buy from different goods, including clothing, electronics, household goods and so on. Using FAK services, these different types of goods can be shipped together, improving loading rates and reducing transportation costs.

Auto parts industry: Car manufacturers often need to transport a variety of different auto parts, such as engines, seats, tires, etc. With FAK services, they can combine 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 all types of ingredients, packaging materials and finished products. Using FAK services can help them better manage the movement of these goods and ensure safe and timely delivery.

05 Precautions

While FAK has many benefits, there are caveats to use. For example:

Cargo portfolio management: Combining different types of cargo together requires a freight forwarding company 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 transport.

Compliance and legal requirements: When using FAK services, freight forwarders are required to comply with relevant international trade laws and regulations. This includes compliance requirements in terms of cargo classification, customs procedures, proof of transport, etc.

Flexibility in customer needs: While FAK services provide a flexible way to combine goods, forwarders still need to provide customized services according to the specific needs of customers. For some special types of goods, it may be necessary to take additional measures and work with partners to meet customer needs.