Rebate (Freight)

Summary of Rebate (Freight)

In trade routes not involving the United States (e.g., Japan to Europe), the practice is legal and accepted. Rebating is often institutionalized in the merchant’s contract with a Conference (read this legal term for further details), wherein a specified percentage of freight paid to member lines of the conference is pledged to be refunded to the shipper after a fixed period of time.

(Main Author: William J. Miller)