Loyalty Agreement

Summary of Loyalty Agreement

A contract between a shipper and a Conference (read this legal term for further details), whereby the shipper pledges to move all or a specified portion of his cargo aboard conference vessels in return for certain economic inducements. In the United States the inducement is limited to a discount of up to 15 percent of the freight levied by the carrier; in other countries, the inducement may provide for rebates as well.

(Main Author: William J. Miller)