Aggregate Tender Rate

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What is an Aggregate Tender Rate?

The aggregate tender rate is a key metric used by shippers and logistics professionals. It refers to the average cost of shipping goods across multiple modes of transportation, based on rates tendered to carriers. This metric helps businesses evaluate freight spend, identify cost-effective shipping strategies, and support more informed rate negotiations with carriers.

Factors Influencing the Aggregate Tender Rate

  • Fuel costs

  • Distance and route

  • Freight volume

  • Carrier pricing models
     

Calculating the Aggregate Tender Rate

To calculate the aggregate tender rate, businesses analyse historical freight invoices and contracted rates across carriers and transport modes. Reviewing average costs over defined time periods helps identify spending patterns and potential inefficiencies.