GlossaryEN1 min readUpdated: Jun 23, 2026

Agreement on Shipping Costs

Shippers, freight forwarders, and carriers use a shipping cost agreement to define how transport charges are calculated, allocated, and settled.

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Last updated: 23 June 2026Published: 19 June 2025

Source: https://www.businessdictionary.com/definition/freight-agreement.html

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Logistics Concept

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Definition & Explanation

Shippers, freight forwarders, and carriers use a shipping cost agreement to define how transport charges are calculated, allocated, and settled. Such a contract typically sets out base rates, permissible surcharges (for dangerous goods, oversized shipments, or peak-season demand), payment terms, and price adjustment clauses. Formalising these conditions in writing gives the shipper cost predictability and provides the carrier or forwarder with a reliable commercial basis for capacity planning. A shipping cost agreement differs from a spot rate: the latter applies to a single consignment on a one-off basis, whereas the agreement governs the terms for an ongoing business relationship.

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Agreement on Shipping Costs

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Related Terms

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