Definition
Joint Fare, Joint Rate refers to a published fare or shipping rate that encompasses the combined costs of more than one carrier service (such as airlines or railroads) necessary to transport passengers or goods to their intended destination. This practice is common in the transportation and logistics industry where multiple carriers collaborate to provide a complete service that neither could individually offer directly.
Examples
Airline Connections: A traveler purchasing a ticket from New York to a remote destination in Africa may find that their journey includes multiple flights operated by different airlines. The published ticket price represents a joint fare that includes all connecting flights.
Rail and Truck Transport: A shipment of goods from a factory in Kansas might be transported by a railroad to a distribution hub in California, then trucked to a final destination in Oregon. The shipping cost provided to the shipper would be a joint rate, combining rail and truck transport fees.
Frequently Asked Questions
Q: How is a joint fare different from a through fare? A: A joint fare combines the rates of multiple carriers to cover a trip requiring multiple transport methods, while a through fare is a fare that is set for the entirety of a journey, typically handled by a single carrier or alliance.
Q: Why are joint rates beneficial? A: Joint rates provide transparency and potentially lower costs for shipping and travel involving multiple carriers. They allow consumers to see one comprehensive price, simplifying logistics and cost management.
Q: How are joint fares calculated? A: Joint fares are typically calculated by multiplying the individual rates of each participating carrier and ensuring that they cover costs while remaining competitive. This often involves agreements and negotiations between the carriers.
Related Terms
- Freight Rate: A charge paid for the transportation of goods by a carrier.
- Interlining: The practice of using multiple carriers to provide a through service to a destination.
- Tariff: A published schedule of charges, rules, and regulations for transportation services.
- Code-Sharing: An arrangement where two or more airlines share the same flight, offering scheduled services.
Online References
- Federal Maritime Commission
- International Air Transport Association (IATA)
- Association of American Railroads
- Logistics Glossary
Suggested Books for Further Studies
- “The Handbook of Logistics and Distribution Management” by Alan Rushton, Phil Croucher, and Peter Baker.
- “Global Logistics and Supply Chain Management” by John Mangan, Chandra Lalwani, Tim Butcher.
- “Supply Chain Logistics Management” by Donald Bowersox, David Closs, and Theodore Stank.
- “Principles of Transportation” by Kenneth D. Boyer.
- “Freight Transport and Distribution” by Anthony Beresford and Stephen Pettit.
Fundamentals of Joint Fare, Joint Rate: Transportation Basics Quiz
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