Zone-Based Freight Tariffs
Zone-Based Freight Tariffs are a structured pricing methodology used in logistics that bases shipping prices on designated geographic zones. Rather than determining rates based purely on distance or weight, this system divides delivery destinations into zones, each with a unique fee. These zones are frequently based on postal codes, cities, or regions, making pricing easier for freight carriers and shippers. The closer the delivery zone is to the origin point, the lower the tariff; more distant zones incur larger charges. This concept streamlines billing, improves rate predictability, and enables firms to provide transparent shipping options to their clients.
CargoWise supports Zone-Based Freight Tariffs by allowing users to configure zone maps, assign pricing rules, and automate the application of appropriate charges during freight planning. This functionality is particularly useful for carriers with extensive networks and for third-party logistics (3PL) providers that manage multiple customer accounts. It helps minimize rate disputes, supports consistent quoting, and ensures pricing compliance across regions. For e-commerce, parcel logistics, and LTL (Less-than-Truckload) shipping, zone-based tariffs offer a reliable framework to calculate shipping costs while optimizing delivery routes based on volume and location.
