Explore what is freight certificate in shipping, including its purpose, contents, real-life examples, air and sea freight differences, relation to Incoterms, and its critical role in international trade documentation.

What Is Freight Certificate?

In shipping, a freight certificate is an official document usually issued by the carrier (shipping line or airline) or freight forwarder as evidence that goods have been received for transport and freight charges are accounted for. It confirms the shipment details alongside the agreed or paid freight costs, acting as a legal acknowledgment in the supply chain.

Freight certificates are critical not just as proof of payment but also in compliance with regulatory requirements, auditing, and freight claim processes. According to a 2024 industry survey, 85% of international shipments require a verified freight certificate for customs clearance to avoid shipment delays.

Contents of Freight Certificate

A comprehensive freight certificate typically includes:

1. Shipper and Consignee Information: Full names, addresses, and contact details

2. Bill of Lading or Airway Bill Number: Unique identifier of the shipment contract

3. Description of Goods: Detailed item list including quantity and type

4. Freight Charges Breakdown: Base freight, surcharges (fuel, security, handling), and total cost

5. Shipment Date & Mode: Date goods were received, mode of transport (sea/air)

6. Vessel or Flight Details: Name, voyage number, departure, and destination ports or airports

7. Customs Information: Any relevant customs declarations or cargo codes

8. Authorized Signature and Stamps: From the carrier or freight forwarder validating the document

Why Do We Need Freight Certificate?

Proof of Payment: Confirms that the freight charges billed by carriers have been agreed upon or paid, reducing payment disputes.

Customs Compliance: Acts as official documentation required by customs to clear shipments and determine duties.

Cargo Release Facilitation: Helps buyers or consignees obtain the release of goods at the port/airport.

Audit and Accounting: Supports financial transactions and auditing processes for logistics companies and exporters.

Claim Resolution: Serves as a reference document in case of freight damage or loss claims.

A typical 2025 report indicated that freight payment disputes reduce by 40% when freight certificates are promptly issued and verified.

Function of Freight Certificate

The freight certificate functions as:

1. Legal Acknowledgment: Confirms receipt of goods for transport and freight payment.

2. Communication Tool: Provides clarity between shipper, carrier, and consignee about costs and cargo.

3. Customs Documentation: Supports regulatory inspections and clearance by accurately detailing freight data.

4. Financial Instrument: Validates payment claims and invoicing related to shipment transport.

Who Issues the Freight Certificate?

Freight certificates are mainly issued by:

Shipping Lines: For sea freight shipments, confirming cargo receipt and freight terms.

Airlines: For air freight, detailing airway bills and freight fees.

Freight Forwarders: When managing shipments on behalf of clients, consolidating shipment and cost details.

Logistics Providers: In some cases, third-party logistics (3PL) companies issue certificates based on transport contracts.

Example of Freight Certificate

Example 1: Sea Freight Certificate

ABC Exports ships 500 cartons of electronics from Mumbai to Rotterdam by sea. The shipping line issues a freight certificate detailing the bill of lading number, description of cartons, gross weight (5000 kg), net weight (4800 kg), voyage number, ports of loading and discharge, and total freight charges of $10,000. The certificate is signed by the shipping line's authorized officer.

Example 2: Air Freight Certificate

XYZ Trading sends 100 kg of pharmaceuticals from New Delhi to Frankfurt via air cargo. The airline issues a freight certificate referencing airway bill number AWB123456, listing the shipment weight, flight number, freight charge of $2,500, and customs-approved handling instructions. It is signed and stamped by the airline representative.

Relation Between Incoterm and Freight Certificate

Incoterms (International Commercial Terms) define the responsibilities of buyers and sellers regarding freight costs, risks, and delivery points.

In FOB (Free on Board), the seller delivers goods on board the vessel and the buyer pays freight. Here, the freight certificate confirms the buyer’s payment responsibility.

In CIF (Cost, Insurance, Freight), the seller pays freight and insurance, and the freight certificate proves seller’s payment and arranged transportation.

The freight certificate thereby supports accountability and transparency by evidencing who paid the freight as per the Incoterm agreed.

Mail to Shipping Line or Freight Forwarder Requesting Freight Certificate (Sample Email)

Subject: Request for Freight Certificate for Shipment BL No. [Insert]

Dear [Recipient’s Name],

I hope this message finds you well. We kindly request the freight certificate for the shipment associated with Bill of Lading Number [Insert BL No.] exported on [Insert Date]. This document is needed to complete our customs clearance and accounting procedures.

Please send the freight certificate at your earliest convenience. Your assistance is greatly appreciated.

Thank you and best regards,

[Your Name]

[Your Company Name]

[Contact Information]

Why Is Freight Certificate One of the Most Important Documents in International Trade?

• It officially records freight charges and shipment acknowledgments, reducing disputes.

• Supports customs authorities in shipment verification and duty assessments.

• Facilitates efficient cargo release at ports and airports.

• Acts as a legal document in transport contracts and financial transactions.

• Essential for auditing, claims, and regulatory compliance ensuring transparent and trustworthy trade operations.

Conclusion

The freight certificate in shipping, whether for air or sea transport, is indispensable for ensuring transparency, legal compliance, and smooth logistics in international trade. Accurate issuance and management of freight certificates minimize delays, aid financial transactions, and protect all parties involved in the shipment process. Understanding its contents, role relative to Incoterms, and correct handling can improve global shipping efficiency dramatically.