Dual rate system
A dual rate system is an international water carrier pricing system in which a shipper signing an exclusive use agreement with the conference pays a rate 10-15% lower than non-signing shippers do for an identical shipment. This system provides significant advantages to both the shipper and the conference, as it allows the conference to keep rates low for all of its members while still providing a financial incentive for companies to sign on as exclusive users.
In addition, this system helps to ensure that the conference’s shipping capacity is used efficiently, as only those companies that are willing to commit to using the conference’s services on a long-term basis are able to take advantage of the lower rates.
Advantages of a dual rate system:
- Keeps rates low for all the conference members.
- Provides financial incentive for companies to sign on as exclusive users.
- Helps ensure that the conference’s shipping capacity is used efficiently
A dual rate system is an important tool for the conference to manage its shipping operations and keep costs low.
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Linear Freight Rebate System – Tutorial; Linear Freight Rebate System – Tutorial
Dual Rate System Definition – Finance Dictionary
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