How do Fixed Rate Contracts work?

Written by Bonita Fowlersmith

Updated at May 1st, 2025

A fixed rate contract with a NVOCC means the shipper and forwarder agree on a base freight rate for a specific shipment or series of shipments over a defined period (typically one year, but can be shorter), for a particular shipping lane. This provides cost certainty and protects the client from market rate fluctuations. Rates are typically fixed for the period, subject to changes in fuel and subject to PSS. Fixed rates work well when a client has consistent and predictable weekly volumes.

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