What is Freight or Tariff Rates

2007-11-1

The freight rates for export shipments can be obtained by contacting the carrier directly or the carrier's agent or the freight forwarder or consolidator.

The Tariff

Ocean and air carriers have freight rates published in a rate book called the tariff, which gives the rates for different kinds of cargo between specific ports worldwide.

The freight conference publishes its ocean cargo rates, while IATA (International Air Transport Association) publishes the air cargo rates. There is no price competition among members within the conferences and the IATA.

Land (road and rail) carriers also have their tariffs, but the cargo rates are often published independently. Hence, a wider range of rates are often applied among the competing carriers, especially in the highly competitive road transports.

Applicable Tariff Rates

The freight rate is often influenced by the volume of traffic on a given route. When an exporter contacts the carrier or carrier's agent for the freight rate, the information normally required of an exporter is the kind of cargo and its intended destination. Information such as the gross weight and total cube of the consignment, the expected date of shipment, and whether the freight will be prepaid or collect may also be required. Then, the carrier or carrier's agent refers to the tariff for the applicable freight rate.

Source: www.jctrans.net
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