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12 Aug 2016

Which Rate is Right?

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Contract Rates vs. Quotes

A common carrier’s rules tariff usually specifies the hierarchy of rate applications when it comes to tariff, contract and quote pricing. However, this has not always been–and is still not always–the standard. So for shippers, this should beg the question of which one should apply.

Customer-specific pricing will come in the form of tariff pricing or contract pricing. For a better understanding of the difference between the two, please visit amtr.com/glossary and review contracts and truck tariffs terms. Customer-specific pricing can be customized to fit the shipper’s and carrier’s needs. Larger discounts may be given for specific locations and accessorial exceptions may be granted for services the carrier may perform on a regular basis.

The common practice for carriers currently is to have the quoted amount supersede any customer-specific pricing. Most commonly, quotes for special services such as expedited, guaranteed delivery and shipments requiring other special services will take precedence. You will have to pay for the service level you require. Once you look further into a carrier’s rules tariff, however, you will find that common quotes obtained online or through customer service via telephone are often just estimates of charges, superseded by client-specific pricing.

Many companies pay thousands of dollars more than they should when quotes are applied instead of customer-specific pricing. At AMTR, our expert auditors will save you money on your freight charges by discerning between the application rules of quotes and client-specific pricing.

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