Joint Rate
A joint rate is a combined transportation rate charged when multiple carriers are involved in moving cargo under a single freight contract. This rate applies when cargo is transported across different segments of the journey by different carriers, such as rail, road, or ocean transport, but the shipper and consignee agree to a unified price for the entire shipment. The joint rate simplifies billing by consolidating the costs of each segment into one charge, making it easier for shippers to manage and pay.
Joint rates are commonly used in intermodal shipping or multimodal transport, where goods are moved using a combination of transport modes. For example, a shipment may travel by truck from the origin point to a rail terminal, and then by train to a port, with different carriers handling each leg of the journey. The joint rate covers the entire distance, and the carriers involved in each transport segment share the revenue based on an agreed formula.
This approach reduces administrative complexity by avoiding multiple invoices from different carriers for each segment of the journey. It also provides a more predictable cost structure for the shipper. Additionally, joint rates enable better coordination between carriers, streamlining the shipping process and reducing potential delays.
Overall, a joint rate offers efficiency, transparency, and simplicity for both shippers and carriers. By consolidating transportation costs into a single charge, it improves logistics operations, especially in complex, multi-leg shipments.
Frequently Asked Questions about Joint Rate
Clear answers to the most common questions people have when learning about Joint Rate.
It simplifies billing and payment when multiple carriers handle different parts of a shipment, providing a unified, predictable cost for the entire journey.
The rate is typically negotiated between the carriers based on the distance, weight, volume, and type of cargo being transported, and the revenue is shared according to each carrier’s role in the shipment.
While joint rates are common in intermodal and multimodal shipments, they are particularly useful for goods that require different transport modes to complete their journey, such as long-distance international freight.