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Ad Valorem Freight

shipping container at sea
Definition

Ad valorem freight refers to a type of shipping charge that is calculated based on the value of the goods being transported. It is a percentage of the goods' declared value and is added to the overall transportation cost. Ad valorem freight is commonly used in international trade to ensure that higher-value goods bear a proportionate share of the shipping costs. By applying this freight rate, carriers can account for the increased risk and responsibility associated with transporting valuable cargo.

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Ad Valorem Freight

Definition

Ad valorem freight refers to a type of shipping charge that is calculated based on the value of the goods being transported. It is a percentage of the goods' declared value and is added to the overall transportation cost. Ad valorem freight is commonly used in international trade to ensure that higher-value goods bear a proportionate share of the shipping costs. By applying this freight rate, carriers can account for the increased risk and responsibility associated with transporting valuable cargo.

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Our experts love to answer questions. Fill out the form and someone will contact you soon.

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Oops! Something went wrong while submitting the form.

Get the Most Advanced Visibility Into the Journey of Your Ocean and Rail Containers

Talk to one of our supply chain experts to get started now.
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Shipping container at seaShipping container at sea