ABSTRACT
The value of the goods is considered because the major determinants of the level of the rate are the goods' value and physical characteristics. The major determinant of the actual freight cost is the distance moved. The multiplicity of classifications and rates both among and within modes, as well as regional differences, makes rate comparisons on different routes and among modes virtually impossible, particularly in an international context. Types of transit rates are the export and import rates given by railroads in the United States. An export rate is an export bounty while the import rates constitute a real decrease in trade barriers. In container tariffs it is common to give three different rates for the same commodity depending on the service required. These include: house-to-house; house-to-pier or pier-to-house; and pier-to-pier. The terminology used in a tariff is commonly specific to the mode and trade.
