Ocean Freight Differential

The amount by which the cost of the ocean freight bill for the portion of commodities required to be carried on U.S. flag vessels exceeds the cost of carrying the same amount on foreign flag vessels. When applied to agricultural commodities shipped under Food for Peace, OFD is the amount paid by the Commodity Credit Corporation. (USTTA1)

The difference between the cost of P.L. 480 shipments that are required to be carried on U.S. flag vessels compared to the cost that would have been incurred had they been carried on lower cost foreign bottoms. The U.S. government pays this difference either by paying the total freight, if the sale is made under Title II of P.L. 480, or by reimbursing the recipient country or private grain company (whichever pays the shipping) if the sale is made under Title I of P.L. 480.