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Updated on March 25, 2026
Freight Rate is the cost of transporting coal from the loading port to the destination, typically by sea.
It is one of the largest components of the total delivered cost and is highly sensitive to market conditions, including vessel availability, fuel prices, and global trade flows. Fluctuations in freight rates can significantly impact trade profitability, especially in CFR and CIF transactions. For experienced traders, timing and freight negotiation can become a source of competitive advantage and margin optimization.