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freight rates

  The money charged for the movement of goods by land, sea, or air. Such charges often discriminate between commodities on the basis of handling characteristics; they often taper with distance (i.e. the charge per tonne kilometre falls as distance increases — see distance decay); and they may have a stepped form because it is easier for a transport operator to quote charges for broad distance bands than to have separate charges for every destination or distance. The setting of freight rates may be subject to competitive pressures but is often determined under conditions of monopoly or collusive oligopoly. (AMH)  



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Other Terms : staple | von Thünen model | command economy
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