Zone Rate

What is a zone rate?

A zone rate is a type of freight rate based on the number of geographic areas that a delivery has to pass through to reach its final destination. The more zones a delivery needs to pass through between its starting point and its destination, the progressively higher the freight rate will be. Postal ZIP codes are often used as the basis for zone rates.

Zone rates are usually used for cartage and small parcel delivery services.

How are zone rates calculated?

Carriers divide a service area into zones, often by distance from the origin, and assign a price to each zone. Your rate depends on the zone of the delivery address and usually on the weight or size of the shipment. Check the carrier's zone chart or ZIP code lookup before you quote shipping to customers, since a nearby address can sit in a higher zone than you'd expect.

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