Freight Allowance

A freight allowance is a discount or rebate offered by a carrier to a shipper or consignee for shipping a certain volume of goods or for using a specific shipping method. Freight allowances are often used to incentivize customers to use a carrier’s services and can be based on factors such as shipment volume, distance, or frequency. The amount of the freight allowance is typically negotiated between the carrier and the shipper or consignee before the shipment is made.