# Ocean Freight Rates Explained: Spot, Contract, FAK, BAF

[Source](https://onechain-tms.com/en/blog/comprendre-les-differents-types-de-tarifs-dans-le-transport-maritime/)

Language: en

Author: Baudouin de Dreuille

Published: 2024-06-17

Updated: 2026-09-23

An ocean freight rate is the price charged to move a container between two points. It combines a base rate with surcharges, and it is bought under a given arrangement: **spot**, for one shipment at the price available when booking, or **contract**, negotiated for a period and often tied to volumes. Two offers can therefore cover the same route but very different commitments.

Before comparing amounts, examine the purchasing arrangement and associated terms.

## Spot vs contract rates

| | Spot rate | Contract rate (including NAC) |
|---|---|---|
| Scope | One shipment, one period | An agreed period and set of lanes |
| Price | Level available at booking | Negotiated, with adjustment clauses |
| Commitments | Depend on the product bought | Allocations, minimum volumes, possible penalties |
| Suited to | Irregular or urgent flows | Regular, forecastable volumes |

A spot purchase addresses a shipment and a specific period. Under [Maersk’s spot-booking terms](https://terms.maersk.com/terms-spot-booking), for example, the rate confirmed in the booking confirmation is not subject to change, other than in the cases the terms list. A contract, by contrast, runs over a longer period: read allocations, minimum volumes, penalties and adjustment clauses in the agreement actually signed.

## FAK: Freight All Kinds

FAK stands for Freight All Kinds: a single rate level regardless of the commodity, within the scope a carrier announces. The label alone does not establish a validity period or loading guarantee.

As an illustration, a [Maersk FAK rate announcement from Asia to North Europe, published in July 2023](https://www.maersk.com/news/articles/2023/07/03/rate-announcement-far-east-to-north-europe), shows what such a rate can cover:

- a level per destination port and container type (20’ dry, 40’ dry, 40’ high cube);
- an effective start date, and an end date given as “until further notice” with a cut-off;
- a base freight rate that already includes fuel-related charges (in that announcement, EFF and LSS, two Maersk fuel surcharges);
- terminal handling charges and other surcharges on top, varying by port.

In that example, the FAK figure was therefore not the full price of the shipment. Check what the one you are offered covers.

## Premium and guaranteed rates

A premium offer may include additional commitments. Ask exactly what they cover, their exclusions and any compensation. Commercial priority is not an absolute on-time-departure guarantee.

Maersk’s spot terms illustrate how such commitments are written: the carrier undertakes to load on the vessel listed in the booking confirmation or on an alternative vessel departing within three days of the scheduled departure. If it fails, a compensation fee applies, provided the customer has met its own obligations and claims in writing within the stated deadline. Other carriers and forwarders word these guarantees differently.

## Contracts and named accounts

A named-account agreement, often called NAC, may identify the shipper within a forwarder-negotiated contract. BCO — Beneficial Cargo Owner — identifies the cargo owner, not a universal rate guarantee. Large shippers may also contract directly with a shipping line.

## Ocean freight surcharges explained

The examples in the last column are dated Maersk announcements, cited to show how a carrier publishes its surcharges. They do not indicate a current or market-representative price level.

| Surcharge | What it covers | Example of carrier announcement |
|---|---|---|
| BAF (Bunker Adjustment Factor) | Changes in fuel cost | [Maersk BAF, December 2024](https://www.maersk.com/news/articles/2024/12/02/bunker-adjustment-factor): tariffs per trade and container type, calculated from a fuel price index over a review period |
| THC (Terminal Handling Charges) | Container handling at the origin (OHC) or destination (DHC) terminal | [Maersk THC for Spain, September 2026](https://www.maersk.com/news/articles/2026/09/01/terminal-handling-charges-spain): revised due to higher port-related and operational costs |
| PSS (Peak Season Surcharge) | High-demand periods on a lane | [Maersk PSS Asia–Europe, May 2026](https://www.maersk.com/news/articles/2026/05/25/far-east-asia-europe-pss-june): amount per container size, with an effective date |
| GRI (General Rate Increase) | Across-the-board increase in base rates on a lane | [Maersk market update, November 2023](https://www.maersk.com/news/articles/2023/11/28/north-america-market-update-november): GRI announced for the India and Middle East markets from 1 December 2023 |

Other items may appear: local charges, contingency surcharges, or a CAF (Currency Adjustment Factor), a surcharge linked to exchange rates. Check which ones each quote includes.

The date used matters too. In its THC notice, Maersk states that spot bookings take the rate applicable to the first vessel’s departure at booking confirmation, while other bookings use a price calculation date. Two quotes made a few days apart can therefore include different surcharges.

## Build a comparable view

Bring together freight, local charges, surcharges, validity, transit, free time and cancellation terms. [Maersk’s spot-booking terms](https://terms.maersk.com/terms-spot-booking), for example, show that free time depends on import and export locations; do not transfer those terms to another contract. Our guide to [demurrage and detention](https://onechain-tms.com/en/blog/tout-comprendre-aux-frais-de-detention-et-de-demurrage) explains what happens once free time runs out.

[OneChain rate management](https://onechain-tms.com/en/rate-management) brings offers and conditions together to support an explainable choice.

## Frequently asked questions

### What is the difference between spot and contract ocean freight rates?

A spot rate covers one shipment at the price available when booking. A contract rate is negotiated for a period, often with volume commitments and adjustment clauses. The right choice depends on how regular and predictable your volumes are.

### What does FAK mean in shipping?

FAK means Freight All Kinds: one rate level regardless of commodity, within the scope announced. It may exclude terminal handling charges and other surcharges, as in the 2023 Maersk announcement cited above, and the label says nothing on its own about loading guarantees.

### What is BAF in ocean freight?

BAF, the Bunker Adjustment Factor, is the surcharge that passes changes in fuel costs on to the shipper. Maersk, for example, publishes it by trade and container type and revises it periodically from a fuel price index.

### What are THC charges?

Terminal Handling Charges cover container handling at the port terminal, at origin (OHC) or destination (DHC). Depending on the offer, they are billed on top of the base freight rate or included in it; who pays them depends on the agreed terms of sale.

### What is the difference between PSS and GRI?

A PSS is a surcharge added during peak periods on a given lane. A GRI is an increase in the base rate itself, announced by the carrier for a scope and an effective date. Both can change the price between two quotes.

### What is a NAC in ocean freight?

A NAC, or named-account agreement, identifies the shipper within a contract negotiated by a forwarder with a shipping line. Its allocations, volumes and penalties depend on the contract actually signed.