Home > Term: deferred rebate
deferred rebate
A deferred rebate is the return of a portion of the freight charges by a carrier to a shipper, in exchange for the shipper giving all or most of his shipments to the carrier over a specified period of time (usually 6 months). Payment of the rebate is deferred for a further similar period during which the shipper must continue to give all or most of his shipments to the rebating carrier. The shipper thus earns a further rebate which will not, however, be paid without an additional period of exclusive or almost exclusive patronage with the carrier. In this way, the shipper becomes tied to the rebating carrier.
- Part of Speech: noun
- Industry/Domain: Convention
- Category: Conferences
- Company: CIC
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