Minimum Quantity Commitment (MQC)
Minimum Quantity Commitment (MQC) is the minimum volume of cargo that a shipper agrees to move with a carrier over a defined contract period. It is usually expressed in units such as containers, weight, or volume. By committing to a guaranteed minimum, the shipper secures agreed freight rates and space allocation. In return, the carrier plans capacity with more certainty.
MQC is commonly used in long-term freight contracts where consistent shipping volumes are expected. It helps carriers forecast demand and optimize vessel or equipment utilization. For shippers, MQC often comes with benefits such as stable pricing, priority space, and reduced exposure to market rate fluctuations. However, the commitment must be realistic and achievable.
If the agreed MQC is not met, contracts may include penalties, rate adjustments, or loss of negotiated benefits. This makes careful volume forecasting important before signing an agreement. When aligned correctly, MQC creates a balanced partnership where both shipper and carrier benefit from predictability and operational stability.
Frequently Asked Questions about Minimum Quantity Commitment (MQC)
Clear answers to the most common questions people have when learning about Minimum Quantity Commitment (MQC).
It helps carriers plan capacity and operations by ensuring a predictable cargo volume over the contract period.
The shipper may face penalties, higher rates, or loss of contract benefits depending on the agreement terms.
It should be based on realistic volume forecasts, past shipment data, and expected business demand to avoid underperformance.