Minimum Charge in Freight
The minimum charge in freight is the base cost that a carrier applies to a shipment, regardless of its actual weight or volume. This price ensures that carriers can meet their fixed operational costs, even when conveying lightweight or low-volume cargo. It is a standard pricing safeguard used for air, sea, road, and rail freight. When a shipper’s goods do not match the weight or dimensions requirement, they may be charged a minimum fee. As a result, the shipper must pay the stated minimum rather than a lesser estimated fee depending on volume.
CargoWise incorporates the minimum charge function within the tariff and rating engine. This guarantees that the system applies the correct base fee if the shipment cost falls below a predetermined threshold. It provides logistics suppliers with correct billing, eliminates manual overrides, and ensures contract compliance. Minimum prices may vary depending on the carrier, route, service level, or client agreement. Users can dynamically specify these conditions in CargoWise, which automatically applies rule-based pricing across shipments and reduces billing disputes and misquotations.
