Spot Rate

Illustration for Spot Rate, Pricing & Surcharges

A freight rate quoted for immediate or near-term shipment at prevailing market prices, without a longer-term volume commitment.

In depth

Spot rates float with supply and demand and can move sharply week to week, sometimes doubling within a month when capacity tightens. They suit shippers with irregular volumes or those who want to take advantage of a soft market, but they carry two risks beyond price: no guaranteed allocation, and lowest priority when a vessel is overbooked. Spot cargo is generally the first to be rolled. Most shippers of any scale run a mix, keeping baseline volume on contract and using spot for peaks and overflow.

Key points

  • Market-priced rate for immediate shipment with no volume commitment
  • Can move sharply week to week
  • No guaranteed allocation and first to be rolled when space is tight
  • Usually blended with contract rates rather than used alone

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Spot Rate: Freight Glossary | CargoLinked | CargoLinked