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Arbitrary

Definition

In the context of the supply chain, "arbitrary" refers to the imposition of a discretionary charge or fee by a carrier, freight forwarder, or other transportation service provider. This charge is not based on a specific cost incurred or service provided but is instead determined at the carrier's discretion. Arbitrary charges are often subject to negotiation and can vary among different service providers. It is important for shippers and customers to be aware of potential arbitrary charges when engaging in freight transportation to ensure transparency and cost-effectiveness in their supply chain operations.

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