Fautfracht

In logistics and transportation, dead freight (also known as shortfall freight ) refers to the compensation that a carrier or forwarder receives if a transport has been agreed but the cargo is either completely or partially unavailable, i.e. not provided. The carrier is therefore unable to utilize the freight capacity as planned, but must still be compensated because the means of transport has been reserved and possibly already sent to the pick-up location.

Characteristics of the Fautfracht:

• Compensation for the carrier: The carrier receives financial compensation, as he has costs for the provided means of transport, personnel and any empty runs despite the non-loading or reduced loading.
• Partial or complete failure of the load: Faut freight can be incurred both if the cargo fails completely and if the means of transportation is not fully loaded.
• Contractual agreement: Many freight contracts contain provisions on faut freight to clarify how such situations are handled and what compensation is payable.

Example:

A freight forwarder is commissioned to transport 20 pallets from a warehouse to a customer. On the day of collection, however, it turns out that only 10 pallets are available. The freight forwarder can now claim a freight charge for the 10 pallets that were not provided, as the remaining capacity of the truck could not be used as planned.

Fautfracht thus represents a safeguard for carriers to minimize losses due to underutilized transport capacities.

Measures to avoid faut freight:

In order to avoid faut freight and the associated costs, both the client (shipper) and the carrier can take various steps:

1. Careful planning and communication:
   • Clear and early communication between the shipper and the carrier is crucial. All details about the volume, weight and number of goods to be transported should be precisely agreed and confirmed in order to avoid misunderstandings.
   • Regular coordination shortly before the planned collection date helps to ensure that the shipments are complete and ready on time.
2. Flexibility in load planning:
   • It can be useful to keep alternative cargo in reserve that can be loaded when needed if the originally planned load fails or is not fully available. This prevents empty runs and makes optimum use of capacity.
3. Ensuring the availability of the goods:
   • The shipper should ensure that the goods are actually available at the agreed time. This requires good internal warehouse and production planning in order to avoid delays or bottlenecks.
4. Contractual flexibility:
   • It can be useful to include provisions in freight contracts that allow the quantity to be transported to be adjusted flexibly. For example, it can be agreed that smaller quantities only result in faut freight if they are below a certain threshold.
5. Find additional partial loads:
   • If a planned load is not complete at short notice, the carrier can try to organize additional partial loads by consulting with other customers in order to still utilize the loading space.

Calculation of the Fautfracht:

The amount of the Fautfracht is usually based on the contractual agreements between the carrier and the shipper. If no special agreements have been made, standard industry calculation methods are applied.

The faut freight can be calculated in various ways:

1. By proportion of unused loading capacity:
   • The faut freight is calculated proportionally on the basis of the unused transport capacity. For example: If a truck is booked for 20 tons of freight, but only 10 tons are loaded, the faut freight could be 50% of the agreed freight costs.
2. Percentage discount:
   • A certain percentage of the originally agreed freight costs is often charged as faut freight. In many contracts, 50 % to 80 % of the agreed freight costs are customary, depending on the amount of expenses incurred for the scheduling and use of the means of transport.
3. Empty run costs:
   • If the carrier arrives with a completely empty means of transport and cannot find an alternative load, an empty run fee could be charged. This can cover the full cost of the journey from the carrier’s location to the pick-up point and possibly back.
4. Fixed amounts:
   • In some contracts, lump sums are stipulated for the case of freight forwarding, which must be paid regardless of the quantity of goods not provided. This gives the shipper a clear basis for calculation.

Example for the calculation of the Fautfracht:

Suppose a carrier is commissioned to transport a load of 10 pallets for €1,000, but only 5 pallets are available on the day of collection. The contract stipulates that 60% of the freight costs for partial loads will be charged as free freight.

Calculation:

• Originally agreed freight costs: € 1,000
• Loaded pallets: 50 % of the load
• Faut freight for the unloaded capacity (5 pallets): 60 % of 500 € (of the unused capacity)

Fautfracht: 300 €

In this example, in addition to the actual freight costs for the 5 pallets transported, the shipper would also have to pay a faut freight of €300 to compensate for the underutilized transport capacity.

Conclusion:

Faut freight is a mechanism that protects the carrier from financial losses if loads are not provided as agreed. To avoid unnecessary costs, both parties should ensure precise planning and make contractual arrangements in the event of partial loads or failures.