Special Rates and Services
A number of special rates and services provided by carriers are available for use in logistical operations. Several common examples are discussed.
Freight-all-kind rates are important to logistics operations. Under Freight-all-kind rates, a mixture of different products is transported under negotiated rating. Rather than determine the classification and applicable freight rate of individual products, an average rating is applied for the total shipment. In essence, Freight-all-kind rates are line-haul rates since they replace class, exception, or commodity rates. Their purpose is to simplify the paperwork associated with the movement of mixed commodities. Numerous special rates exist that may offer transportation saving on specific freight movements. When a commodity moves under the tariff of a single carrier, it is referred to as a local rate or single-line rate. If more than one carrier is involved in the freight movement, a joint rate may be applicable because multiple carriers are involved in the actual transportation process. Because some motor and rail carriers operate in restricted territory, it may be necessary to utilize the services of more than one carrier to complete a shipment. Utilization of a joint rate can offer substantial saving over the use of two or more local rates.
Transit services permit a shipment to be stopped at an intermediate point between initial origin and destination for unloading, storage, and/or processing. The shipment is then reloaded for delivery to the destination. Typical examples of transit services are milling for grain products and processing for sugar beets. When transit privileges exist, the shipment is charged a through rate from origin to destination plus a transit privilege charge. For a variety of reasons, a shipper or consignee may desire to change routing, destination, or even the consignee after a shipment is in transit. This process is called diversion and reconsignment.