A shipping rate that is based on a percentage of the total shipment cost.
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What is Proportional Rate?
A proportional rate is a shipping rate that is based on the weight or volume of the shipment. The rate may be calculated using a formula that takes into account the weight or volume of the shipment, as well as the distance and mode of transportation. Proportional rates are commonly used for less-than-truckload (LTL) shipments, where the cost of transportation is shared among multiple shippers.
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