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Commodity Rates

Are special or specific rates published without regard to

A common practice done when a large quantity of a
product moves between two locations on a regular
Exception Rates
Exception rates or exception to the classification are
special rates published to provide shippers lower rates
than prevailing class rate.
When an exception rate is published, the classification
that normally apply to the product is changed.
Example of Exception Rates
Aggregate Tender Rateis utilized when a shipper
agrees to provide multiple shipments to a carrier in
exchange for a discount or exception from prevailing
class rate.
Limited Service Rateis utilized when a shipper
agrees to perform services typically performed by the
carrier, such as trailer loading, in exchange for a
Special Rates and Services
A number of special rates and services provided by for-
hire carriers are available for logistical operations.
Freight-All-Kinds Rate
Freight-All-Kinds Rate (FAK) rates, a mixture of
different products is transported under a generic rating.
Rather than determine the classification and applicable
rate of each product, an average rate is applied for the
total shipment.
Numerous special rates exist that
offer transportation savings on a
specific freight movements.
Local Rate or Single Line Ratewhen a commodity moves under the
tariff of a single carrier.
Joint Ratewhen more than one carrier is involved in freight
movement. Applicable even though multiple carriers is involved in
actual transportation process.
Proportional Rates- offer special price incentives to utilize a
published tariff that applies to only part of desired route. Most often
applicable to origin or destination points outside the normal
geographic area of a single tariff.
Combination rateare similar to proportional rates in that two or
more rates be combined when no published single-line or joint rate
exists between two rates. The rates may be any combination of class,
exception and commodity rates.

Transit Services
Transit Services permit a shipment to be stopped at an
intermediate point between its initial origin and final
destination for unloading storage and/or processing.
The shipment is then reloaded for delivery to the final
Diversion and Reconsignment
For a variety of reasons, a shipper or consignee may desire to
change routing, destination or even consignee once a shipment
is transit.
Diversionconsists of changing the destination of a shipment
prior to its arrival at the original destination.
Recongsigmentis change in consignee prior to delivery.
Both services are provided by railroads and motor carriers for
specified charge.
Split Delivery
Split Delivery -is desired when portions of shipment
need to delivered to different facilities. Under a
specified tariff condition, pick-up and delivery can be
extended to points beyond the initial destination.
Demurrage and Detention
These charges assessed for retaining freight cars or
truck trailers beyond specified loading or unloading
Demurrageis used by railroads for holding a railcar
beyond forty-eight hours before unloading the
Accessorial Services
In addition to basic transportation, motor and rail
carriers offer a wide variety of special ancillary services
that can aid in planning logistical operation.
Environmental Services refer to special control of
freight while in transit such as refrigeration ventilation
and heating.
Transport Decision Making
This requires the availability of information and the
assignment of knowledge, trained individuals to
process the information in order to serve the
enterprises functional and strategic transportation
Information is provided through a variety of transport
Transport Documentation
Several documents are required to perform each
transport movement.
The three primary types are
bills of lading
freight bills
shipping manifests
Bill of Lading
The bill of lading is the basic document utilized in
purchasing transport services. It serves as a receipt and
document commodities and quantities shipped.
The bill of lading specifies terms and conditions of
carrier liability and documents responsibility for all
causes of loss or damage except those defined as acts of
Order-notified or Negotiable bill of lading
is a credit instrument. It provides that the delivery not be made
unless the original bill of lading is surrendered to the carrier.
The usual procedure is for the seller to send the order-notified
bill of lading to third person. This facilitates international
transport where payment for goods is a major consideration.
Export bill of lading
Permits domestic use of export rates, which are sometimes
lower than domestic rates. Export rates may reduce total cost if
applied to domestic origin or destination line-haul transport.
Freight Bill
The freight bill represents a carriers method of
changing for transportation services performed. It is
developed using information contained in the bill of
lading. It is either prepaid or collect.
Prepaid bill- means that transport cost must be paid
prior to performance
Collect shipment- shifts payment responsibility to the
Shipping Manifest
The shipping manifest lists individual stops or consignees
when multiple shipments are placed on a single vehicle.
Each shipment requires a bill of lading. The manifest lists the
stops, bill of lading, weight and case count for shipment.
The objective of the manifest is to provide a single document
that defines the contents of the total load without requiring a
review of individual bills of lading.
Traffic Department
1. Auditing and claim administration
2. Equipment scheduling
3. Rate Negotiation
4. Research
5. Tracing and expediting