Incentive Rate

An incentive rate is a shipping rate that induces the shipper to send heavier volumes per shipment. This can be helpful for shippers who have large shipments that need to be sent out quickly. By offering an incentive rate, the shipping company can encourage the shipper to send all of their goods in one go, rather than splitting them up into multiple shipments. This can save time and money for both the shipper and the shipping company.

When negotiating an incentive rate with a shipping company, it is important to be clear about what is included in the shipment.

  • Some companies may charge an additional fee for oversized items or for items that are not packed correctly.
  • It is also important to make sure that the incentive rate applies to all of the goods being shipped, rather than just a portion of them.
  • If there are any special requirements or restrictions, it is best to discuss these with the shipping company before agreeing to the incentive rate.

An incentive rate can be a great way for shippers to save money on their shipping costs. By sending all of their goods in one go, they can take advantage of the lower shipping rates offered by the shipping company. It is important to be aware of any restrictions or additional fees that may apply, but with a little bit of negotiation, an incentive rate can be a great way to save money on your shipping costs.

Related Links

Incentive Rate Definition – Operations & Supply Chain Dictionary