Box rate

A box rate is a freight rate quoted as a lump sum per container, irrespective of the contents and irrespective of how much cargo the shipper stuffs into the box. The carrier charges one figure for a 20-foot TEU and another for a 40-foot FEU on a given origin-destination pair, so the shipper carries the density risk and has the incentive to load the container fully. Box rates replaced the older commodity-by-weight liner tariff for most containerized trades and underpin both spot quotations and service-contract rates. A box rate set for one named commodity is a commodity box rate; one rate covering mixed cargo is a freight all kinds (FAK) rate.