Freight all kinds
What is freight all kinds (FAK)?
Freight all kinds (FAK) is a pricing arrangement used in freight transportation that assigns a single rate or tariff classification to a shipment containing multiple commodities with different freight classes. Instead of pricing each item at its individual class, the carrier or logistics provider applies one blended rate to the entire load.
FAK is used most often in less-than-truckload (LTL) shipping and palletized ocean freight. Freight forwarders, consolidators, logistics service providers and large shippers use FAK when consolidating loads that carry multiple commodity codes. When applied strategically, FAK can reduce billing complexity and may lower the overall cost of a shipment.
What class code is FAK cargo?
For over-the-road FAK shipments, an LTL carrier assigns a single National Motor Freight Classification (NMFC) code to the cargo rather than coding each commodity separately. This simplifies shipping and invoicing and typically reduces the tariff paid for the shipment.
How is a FAK rate calculated?
FAK rates replace per-class pricing with a single flat rate. How that rate is determined varies by mode and carrier.
Less-than-truckload (LTL) FAK rates
LTL carriers typically calculate a FAK rate by averaging the freight classes in the shipment. The shipper pays the tariff for that single averaged class, which often reduces overall cost. Stowability, handling complexity, liability and density of the freight all factor into the final quoted rate.
Ocean freight FAK rates
Freight forwarders and non-vessel operating common carriers (NVOCCs) typically calculate ocean FAK rates based on container size, container type and the current shipping lane rate. As with LTL, stowability, handling, liability and density affect the final quote.
What commodities are suited to FAK?
Because FAK shipments are negotiated directly between carriers and shippers—not governed by the National Motor Freight Traffic Association (NMFTA)—both parties have flexibility in setting terms. A shipment is generally a good candidate for FAK when:
It contains multiple NMFC classes
The items have similar stowability requirements
Cargo liability coverage cost is reasonable
An FAK rate may be less advantageous or unavailable when a shipment includes:
High-value commodities
Oversized or non-standard freight
Items with widely varying product density
How technology helps manage FAK shipments
Less-than-truckload and full truckload shippers who move a variety of commodities can benefit from an FAK strategy when used correctly. A transportation management system (TMS) supports FAK shipping by helping logistics teams:
Access a network of qualified carriers and market-relevant rate quotes across modes
Identify when FAK consolidation creates cost savings compared to per-class pricing
Optimize FAK shipments across LTL and ocean modes
Track in-transit loads from origin to delivery
Streamline claims processes and management when issues arise
Being able to compare FAK rates against per-class alternatives in real time gives shippers the information they need to make better decisions on each load.