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Contract Rate

A long-term rate solution offered by carriers or third party logistics (3PL) providers that allow the shipper to benefit from more stabilized pricing.

What is a Contract Rate?

Contract Rates present an exciting proposal to any business looking to set up regular shipping lanes to and from their customers. 

Contract Rate shipping has multiple benefits that affect the shipper, such as:

  • An annual quote that is personalized to your shipping lanes
  • Complete coverage of shipping lanes
  • Long-term stable pricing
  • Accommodation for stable, preplanned shipping lanes
  • Typically more cost-effective than a spot rate

The exact benefits from a contract rate will vary by company. Businesses that wish to make such arrangements can put forth a request for proposal to a carrier or 3PL. They should include important details such as:

  • Shipping frequency
  • Weight and quantity
  • Destination(s)
  • Origin(s)
  • Commodities

Looking for ways to reduce your transportation costs through contract rates? Our freight resources include an easy to complete form that allows you to enter all the necessary information. 

Related articles: 

Dry Van Rates: An Affordable Shipping Solution 

Freight Request For Proposal (RFP)

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