FAK it.. A deep dive into FAK rates and how it works..
The process of global trade is simple to look at, especially if you look at it from the outside..
- There is a buyer who needs a product ;
- There is a seller who sells this product ;
- They discuss and agree on a price ;
- The buyer pays the agreed price ;
- The seller arranges for the product to be transported to the buyer
End of trade..
Simple, right..?? Many would wish it was so..
While there are several processes and documentary flows involved in trade negotiations, there are even further processes involved in the actual movement of the goods from Point A to Point B..
One such process in the movement of goods that influences product pricing is the process of freight negotiation and freight quotation in which there are several types..
Let us take a deep dive into FAK rates and how it works..