What Is FAK? Freight All Kinds Explained for Beginners

What is FAK?

FAK stands for Freight All Kinds (also seen as Freight of All Kinds). It is a pricing arrangement used in freight transport where different commodities are grouped under one negotiated rate rather than priced individually by detailed commodity class or tariff. The core idea is to simplify quoting, invoicing, and contracting when a shipment contains a variety of goods that might otherwise fall into different freight classes or tariffs.

How FAK works

In practice, a carrier and a shipper (or broker/3PL) agree that certain commodities, or a defined range of commodities, will be transported under a single rate. The arrangement is usually captured in a contract, tariff, or rate confirmation and will specify any exclusions (such as hazardous materials, refrigerated items, or oversized freight). Under FAK, the carrier accepts the risk that some items might cost more to handle than the agreed rate covers, and the shipper accepts a possibly higher price for some items in exchange for simplicity.

Where you commonly see FAK

• LTL (Less-Than-Truckload): Many LTL carriers offer FAK agreements so customers with mixed palletized shipments can be billed at one rate.
• Ocean and intermodal: Containerized cargo can be moved under an FAK tariff when commodities are non-hazardous and stowage-compatible.
• 3PL and consolidation services: Providers that consolidate many small shipments often use FAK to simplify client billing and improve quoting speed.

Benefits

• Administrative simplicity: One rate to manage instead of many commodity-specific rates.
• Faster quoting: Sales and operations can provide quotes quickly without detailed NMFC or commodity class analysis for each SKU.
• Predictable costs: Budgets and forecasting are easier when pricing is standardized.

Limitations and exclusions

• Not for specialized cargo: Hazardous materials, refrigerated freight, oversized loads, and high-value cargo typically fall outside FAK.
• Cross-subsidization: Shippers of lightweight items can end up subsidizing the transport of heavier, more handling-intensive goods under the same rate.
• Less granular cost visibility: FAK obscures per-item transport cost signals that are useful for pricing and product profitability analysis.

How FAK compares to other pricing models

Unlike commodity-class-based pricing (e.g., NMFC classes in North America), which calculates cost by density, stowability, and liability per SKU, FAK flattens those differences into one price. Spot rates and ad-hoc tariffs are transaction-based and often more volatile; contracted FAK rates are usually negotiated for a period, offering stability compared to spot market swings.

Typical contractual elements

• Validity period (start and end dates)
• Scope of commodities and explicit exclusions
• Minimum volume or spend commitments
• Service levels and claims handling procedures
• Repricing triggers for oversized, overlength, or hazardous items

Practical example

A national retailer negotiates an FAK rate for LTL shipments under 500 kg where clothing, small household items, and packaged accessories are covered. Seasonal excess inventory like furniture that requires special handling is excluded and priced separately. The retailer appreciates the ease of invoicing, while the carrier benefits from predictable volumes.

When to choose FAK

FAK is a good choice when a shipper handles a broad mix of non-specialized SKUs, values administrative simplicity, and prefers predictable contract pricing. It is less suitable for freight that requires special handling, detailed cost allocation, or regulatory compliance that demands item-level documentation.

Summary

FAK is a practical, beginner-friendly mechanism to simplify freight pricing across diverse cargo types. It balances convenience and commercial risk and is widely used across LTL, containerized ocean freight, and consolidation services. Informed use of FAK requires clarity about exclusions, ongoing monitoring of product mix, and periodic renegotiation to ensure the rate remains fair for both shipper and carrier.