Blanket Rate

Tags: Glossary

A single rate charged for a specific type of service, regardless of the quantity or frequency.

What is a Blanket Rate?

A Blanket Rate in shipping is a pricing arrangement in which a carrier charges a single rate for the transportation of goods between two points, regardless of the weight, size, or value of the shipment. The blanket rate is typically negotiated between the carrier and the shipper and covers multiple shipments over a specified period of time. 


The blanket rate is often used for shipping goods that are similar in size and weight, such as bulk commodities or standardized products. By charging a single rate for all shipments between two points, carriers can simplify their pricing structure and reduce administrative costs. 


One advantage of a blanket rate is that it provides shippers with cost certainty and predictability, as they know the exact price, they will pay for transportation services regardless of the specifics of each shipment. However, shippers should carefully consider the terms of the blanket rate agreement, including any minimum shipment requirements, to ensure that the arrangement is cost-effective for their specific shipping needs. 

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