The difference between what the shipper pays and what the carrier charges is called what?

The difference between what the shipper pays and what the carrier charges is called what?

• A. Freight
• B. Load
• C. Fee
• D. Margin

Answer: (D)

In freight transactions, the difference between what the shipper pays and what the carrier is paid is the margin. This margin represents the intermediary’s earnings for arranging and coordinating the move—the profit earned from the spread between the shipper’s payment and the carrier’s payment. Freight would be the actual charge for moving the goods, while a generic fee or a load doesn’t specifically denote the profit slice from the broker. So the margin best captures the financial gap that the intermediary earns.

In freight transactions, the difference between what the shipper pays and what the carrier is paid is the margin. This margin represents the intermediary’s earnings for arranging and coordinating the move—the profit earned from the spread between the shipper’s payment and the carrier’s payment. Freight would be the actual charge for moving the goods, while a generic fee or a load doesn’t specifically denote the profit slice from the broker. So the margin best captures the financial gap that the intermediary earns.