Blanket Rate

Posted in Operations and Supply Chain Terms, Total Reads: 790
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Definition: Blanket Rate

A blanket rate is one which remains fixed across the board over a range of items. For e.g. A carrier may charge the same amount to the shipper irrespective of the product shipped for 100 km, 200 km or 500 km i.e. regardless of the distance.


Sometimes, the variable can be time as well. i.e. A contract can be signed for a period of 6 months and the rate would remain the same over the entire period regardless of external circumstances.


Blanket rates are commonly applied to products being hauled for long distances and whose producers are together in a certain area or cluster. For e.g. grains, coal, lumber, etc. Such rates are called blanket rates.

 

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