Glossary
Dead Freight (DF)
The cost of transporting empty cargo containers or space that is not utilized in a shipment.
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What does Dead Freight (DF) mean?
Dead Freight (DF) is a term used in shipping and logistics to refer to a charge or penalty imposed on a shipper or consignee for failing to utilize the full capacity of a contracted shipping container or vessel.
Dead Freight may occur when the shipper or consignee reserves a certain amount of space on a container or vessel but fails to fill it completely. In such cases, the carrier may charge the shipper or consignee for the unused space or weight that could have been utilized. This charge compensates the carrier for the lost revenue and opportunity cost of not being able to utilize the full capacity of the container or vessel.
Dead Freight charges may be determined based on various factors, such as the type of cargo, the distance to be transported, the size and weight of the container or vessel, and the terms of the shipping contract. The amount of Dead Freight charged may be negotiated between the parties or may be specified in the contract terms.
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