Freight Rebate

Freight Rebate in International Trade

Meaning of Freight Rebate, according to the Dictionary of International Trade (Global Negotiator): A refund of a portion of previously paid transportation charges, usually in return for the shipper's tendering a certain volume of freight to the carrier. This practice is illegal in some countries, such as US. This can have the unintended consequence of making legitimate claims against carriers difficult, since they must be fully documented to prove that they are not actually rebates in disguise.