What is an FAK? FAK Definition & Examples
FAK stands for Freight All Kinds. Essentially, FAKs were set up to help shippers who ship items at multiple freight classes ship all those shipments at the same class. It was implemented to facilitate an easier pricing and billing communication between the shipper and the carrier. Additionally, it eliminates the headache of figuring out the NMFC classification of individual items each time a shipment is processed. As an example, a shipper who shipped multiple commodities ranging in class from 125 to 200 could negotiate an FAK with the carrier to ship all items at class 150. More recently, FAKs have evolved into a negotiating tool used by both the shipper and carrier. Depending on the volume of the shipper, freight carriers will agree to ship items at a lower class in order to secure the business of the customer. Usually, a carrier will agree to FAKs for shipments transported through its most traveled routes since this is most cost efficient for the carrier. Negotiating FAKs is a huge advantage in securing the lowest rates for customers and is a key component in how ShippingDiscounts.com secures its low freight rates.
When we are talking to potential customers, they often ask us what our discounts are with a particular carrier. For instance, a customer may say, I’ve got an 80% discount with Southeastern Freight. First off, without knowing whether the customer has any FAKs or not, we can’t accurately compare pricing. Additionally, freight companies are tricky when negotiating their rates, as one customer may have an 80% off of 2009 pricing, while another customer may have a 75% off 2002 pricing and blow the first customer’s freight rates out of the water. Without actually seeing a customers’ invoice or getting an actual spot quote based on the common shipping parameters, its just impossible to tell what type of freight savings we’ll be able to offer.