Fair Value

In the context of logistics, fair value is the estimated market value of a carrier’s property. The calculation basis for fair value includes original cost minus depreciation, replacement cost, and market value. When setting rates, carriers often use fair values to determine how much they should charge for their services.

Fair value is an important concept in logistics because it allows carriers to set rates that are based on the true market value of their services. This ensures that carriers are able to cover their costs and make a profit, while still providing customers with a fair price for their services.

Fair value includes:

• The original cost of the carrier’s property.
• The replacement cost of the carrier’s property.
• The market value of the carrier’s property.

Logistics is a vital part of any business that involves the movement of goods. Fair value is an important concept in logistics because it allows businesses to set rates that are based on the true market value of their services. This ensures that businesses are able to cover their costs and make a profit, while still providing customers with a fair price for their services.