What is Freight?

In international transportation, the term “navlun”, which is referred to as “freight” in English, is used in Turkish to mean “transportation cost” or “carriage fee.” When examined historically, the term navlun originally referred to the service fee paid to the carrier for cargo transported by sea. However, with the development of all modes of transportation over the years, it has come to be used as the service fee charged in return for the transportation of goods, regardless of which mode of transport is used. The freight charge is, in a way, considered a commercial agreement and may be paid by the customer, intermediary, sender, or receiver.

FREIGHT CONTRACT

The contract that determines who will pay the transportation cost and includes information about the transportation model is called a “freight contract.” The term “freight collect” indicates that the freight charge will be paid by the buyer, i.e., the importer, while “freight prepaid” indicates that it will be paid by the sender, i.e., the exporter. These two terms are included not only in freight contracts but also in documents and agreements covering all transportation methods, such as CMR (road transport document), bills of lading, air waybills, and multimodal transport bills of lading. The party wishing to carry out the transportation must fulfill all transportation requirements and possess the transport acceptance documents. In addition, in accordance with the freight contract, the following conditions must be met:

  • The goods must be suitable for the chosen mode of transportation

  • The shipment must be carried out in accordance with the determined transportation method

  • The vehicle to be used for loading and transportation must be selected and supplied in a manner suitable for the cargo

  • The transportation service must be subject to a fee

INFORMATION THAT MUST BE INCLUDED IN A FREIGHT CONTRACT

In order for the transportation process to be carried out in accordance with certain standards, some information must be included in the freight contract. These can be listed as follows:

  • Type of goods

  • Tonnage/weight information

  • Payment method

  • Quantity of the cargo/cargos

  • Mode of transportation

  • Delivery terms

  • Name/title of the consignor (person or company)

  • Contact details of the consignor (person or company)

  • Place of origin and destination

  • Date the contract is concluded

  • Vehicle suitable for the cargo

  • Transportation conditions of the cargo


SITUATIONS IN WHICH A FREIGHT CONTRACT MAY BE TERMINATED

Under certain special circumstances, a freight contract may be terminated. These circumstances can be listed as follows:

  • War

  • Armed conflict

  • Cancellation compensation (freight)

  • Seizure of the vehicle carrying out the transportation by the state

  • Seizure of the loading or unloading point

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