Ad Valorem Freight
Ad valorem freight refers to freight charges calculated based on the value of the goods being transported, rather than their weight or volume. This pricing method ensures that the cost of shipping reflects the value of the cargo, often used for high-value or delicate items.
Related glossary terms
Ad Valorem
Ad valorem means according to value in Latin. It describes duties and freight charges set as a percentage of goods value in trade, as with most import tariffs.
Ocean Freight
Ocean Freight refers to transporting goods by sea using container ships or bulk carriers, the dominant mode of international trade due to its large-volume…
Freight Bill
Freight Bill is a carrier-issued invoice to the shipper detailing all transportation charges, including origin, destination, weight, dimensions, and applicable…
Chargeable Weight
Chargeable weight is the greater of the actual and volumetric weight used to price freight. Learn how dimensional factors apply in air and ocean cargo.
