What is Dead Freight?

Dead Freight refers to the cost incurred by a transport company due to the shipper’s late amendments, which results in unfilled capacity. The compensation for dead freight is charged as a fee.

When a shipper reduces the freight being shipped or cancels it completely, the transport company may need more space on the truck or ship. The compensation for this unfilled space is known as dead freight fees, which are charged to the shipper. These fees are intended to compensate for the transport company’s loss of revenue due to the unfilled capacity caused by the shipper’s changes. Dead freight can occur in any mode of transportation, including trucks, ships, and aeroplanes.