What is a Tariff?
In transportation, a tariff is a published document that establishes the rates, rules, and accessorial charges that apply to freight services. It serves as the pricing framework for transportation between a carrier and shippers.
Tariff Components
- Base rates: Per-hundredweight or per-mile charges
- Class rates: Rates by freight class
- FAK rates: Freight-all-kinds rates
- Minimum charges: Lowest charge per shipment
- Accessorials: Additional service charges
- Rules: Terms and conditions
Types of Tariffs
- Class tariff: Based on NMFC freight classes
- Commodity tariff: Specific to certain products
- Exception tariff: Deviations from standard classification
- Contract rates: Negotiated pricing
Import/Export Tariffs
Note: In international trade, tariff also refers to customs duties/taxes imposed on imported goods, which is different from carrier tariffs.
Tariff Management
- Carriers publish tariffs electronically
- TMS platforms integrate carrier tariffs
- Shippers negotiate contract rates
- Tariffs subject to periodic updates