SPECIAL RATES

In logistics many term of rate that certain company must know because each rate has different functionality. In term of area, location or route rates have a many special rates that we must know. The special rate is local rates, joint rates, proportional rates, different rates, per-mile rates, terminal-to-terminal rates and blanket or group rates.

The special rate is the most important part for logistics because any transaction or thing to be dealt with must be having the rates. The meaning of local rates is applied to any rate between two points serve by the same carrier. Local rates are involved fully-cost of factory. The cost will be part of local rates is must be including cost for pick up, documentation, rating, billing and delivery. The important part of local rates is must be documentation for anything to be dealt with.

 Second rates is joint rates, this is a single rates published from a point on one carrier’s route to another carrier’s destination. Joint rates usually lower in total charges. There have a combination of different modes of transportation and also combination of rates and the rates to be total through the movement of economy.

Another rates is proportional rates might publish a proportional rates (lower than the regular local rate) that applies only through moves to certain destination points beyond its line in order to get advantages.  Moreover, usually for differential rates based on speed because generally applies to a rate published by a carrier that faces a service time disadvantage compared to a faster carrier or mode. Normally, differential rates are charges based on different modes of transportation that has ability, speed and level of service such as rate for air transportation is higher than rate for highway.

Per mile rates is normally the charge based on distance. Some rail, motor and air carrier provide rates that are based purely upon the mileage involved. Nowadays, taxi has their own automatically calculation rates based on distance. Last but not least for this topic is terminal-to-terminal rates that different charges or rate for different terminal. This rate often referred to as ramp-to-ramp rates and applies between terminal points on the carrier’s lines. These rates require the shipper and consignee to perform the traditional pickup and delivery.

 The last point is blanket or group rates apply to or form whole regions, rather than point. For example rates are in the Johor Bahru and Kota Tinggi is generally treated as having the same origin and the same rates. But when Johor Bahru and Malacca are different rate because has a different zone of location.