Class Rates
In Transportation terminology, the price in dollars and cents per hundredweight to move a specific product between two locations is referred to as the rate. The rate is listed on pricing sheets or on computer files known as tariffs. The term class rate evolved from the fact that all products transported by common carriers are classified for pricing purposes. Any product legally transported in interstate commerce can be shipped via class rates. Determination of common carrier class rates is two-step process. The first step is to determine the classification or grouping for the product being transported. The second step is determining the rate or price based on the freight classification of the product weight, and shipment origin/destination points.