Umbrella Rate

Who charges? Carrier or Transportation Service Provider

Charged at: Typically applied to freight shipments via a specified route or service.

An umbrella rate is a combined or packaged pricing offered by a carrier or transportation service provider for a variety of services or shipments. Rather than providing separate rates for particular services or shipments, the carrier provides a single complete quote that includes freight charges, surcharges, and accessorial fees. Umbrella rates are frequently negotiated between the carrier and the shipper or logistics provider and can result in cost savings or simplified pricing structures for high-volume shipments.

Tips: Shippers should thoroughly analyze and negotiate umbrella prices to ensure they meet their specific transportation requirements and financial limits.