Joint Rate

What is a Joint Rate in Transportation?

A joint rate is a freight rate in which a single rate is acceptable to several carriers to carry that shipment on a chosen route. It is the shipping rate applied to the shipment involving different carriers working together to move the goods from the origin to the destination without charging separately for each part of the movement. Rather, than agreeing on a joint rate, the concerned carriers charge an all-inclusive rate that covers the whole journey.

Key Features of a Joint Rate

Single Rate for Multiple Carriers

The joint rate provides only a single rate for many carriers, thus an all-inclusive transport bill in one billing and coordination for shippers. Coordination becomes easier with one agreed-upon cost for shippers.

Shared Responsibility

Each carrier along the route is responsible for ensuring that their shipment will be delivered, but collectively they commit to the responsibilities each will maintain and the service levels to be coordinated.

Cost Efficiency

A joint rate is sometimes cheaper than paying separately for the legs of the journey. Through a unified effort, carriers may thereby present a better rate as it benefits shippers and carriers.

Tips for Negotiating Joint Rates

• Reliability of the Carrier: Choose carriers that can ensure less delay or problems during transportation.
• Evaluate the Route Transit: Ensure the route you use is an efficient and timely one, based on all stops and likely delays.
• Clarity on Roles and Responsibilities: All carriers involved should be made aware of their roles and responsibilities, starting from handling to liability coverage.

 

Conclusion

Joint rates allow shippers to get an efficient and cost-effective method of moving freight over several carriers along a given route. As unified costs coupled with shared responsibility, it can, therefore, simplify logistics and provide greater simplicity in billing and coordination.