Commodity Rate

Tags: Glossary

The freight charge applicable to a particular commodity.

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Al Sharqi Shipping is a leader in the logistics industry with more than 30 years of experience in guiding and moving freight across the globe.

What are Commodity Rates and How are they Calculated?

A commodity rate is a freight rate charged for the transportation of a particular commodity. The rate is usually based on the characteristics of the commodity being transported, such as its weight, volume, or value, as well as the shipping distance and mode of transport. 


Different commodities may have different rates based on their unique characteristics and shipping requirements. For example, hazardous or dangerous goods may require special handling and transport, which can affect the freight rate. Similarly, perishable goods may require refrigerated transport, which can also affect the freight rate. 


Commodity rates are typically set by shipping companies or carriers and are subject to market conditions and supply and demand dynamics. Shippers may negotiate rates with carriers based on their shipping volume and requirements, as well as market conditions. 

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