Commodity box rate

A commodity box rate is a box rate set for one named commodity rather than for all cargo alike, quoted as a lump sum per container on a specific trade lane. The carrier prices the box according to the cargo’s density, value, stowability, and risk, usually identified by its Harmonized System (HS) code, so a heavy low-value commodity earns a different rate from a light high-value one. A commodity box rate undercuts the carrier’s freight all kinds (FAK) rate for that good, since FAK is a single averaged tariff covering mixed cargo. Service contracts often combine commodity box rates for the shipper’s main goods with an FAK fallback for the rest.