- Published: December 19, 2021
- Updated: December 19, 2021
- University / College: Medical College of Wisconsin
- Level: Doctor of Philosophy
- Language: English
- Downloads: 21
Freight ification Freight ification is grouping of the product being transported. ification is determined byseveral elements such as value and density, liability, stow-ability and handling. The primary role of classification is to separate different items while combining items with the same characteristics. The purpose of classification is to help in determining freight charges per class, and it provides a comparison of commodities moving to different states and countries. Classification makes it easy to determine the packaging requirement and space, and it also helps shippers to locate the product quickly.
Rates and Rating
There is a distinction between rates and rating. Rate is the price per hundred weights to move an individual product between two locations. It is listed on pricing sheets or tariffs. Various products in different classes are charged different rates. Rate is determined by weight and size of the product.
Rating involves determining the appropriate, legal, economical rates and routes for the transportation of foreign and domestic freight through any or all modes of transportation. These determinations are made according to published classification, tariff, and tariff routings. Rating also includes development of narratives and exhibit materials and similar information to be used by others to negotiate and requested rates. In addition, it may also include preparation of materials concerning rate matters in cases to be presented to representatives of the carriers, regulatory bodies, and the courts. The goal of the assessment is to establish the appropriateness of classification, routes, rates and carriers’ actions (Gianpaolo & Laporte, 2004).
Classification and rate depend on the grade. Rating determines the appropriateness of classification and rates. Once products are shipped they must be classified for various reasons. Classification helps to determine the rates for each class.
References
Gianpaolo Ghiani, G. L. & Gilbert Laporte (2004). Introduction to logistics systems management. J. Wiley, Chichester, West Sussex
