Freight Rate is the price charged by a carrier for transporting goods from one location to another.
How It Works:
- The carrier calculates rate based on weight, volume, and distance.
- Market demand and fuel costs influence pricing.
- The rate is quoted to the shipper.
- Payment terms are agreed upon.
Benefits:
- Helps estimate shipping costs
- Enables comparison between carriers
- Supports budgeting and pricing decisions
- Provides transparency in logistics
Example:
A shipping company quotes a freight rate of ₹5,000 per ton for transporting goods by sea.