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Point-to-Point Pricing: A Basic Overview

Point-to-Point Pricing: A Basic Overview

What is Point-to-Point Pricing?

Point-to-point pricing assigns a rate to a specific origin-destination pair, rather than grouping similar lanes together. A terminal (marine / rail) or port complex is typically used as the origin point, and the destination is a specific delivery address, city and state, or ZIP code. 

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A simple example of point-to-point pricing for a carrier working out of Los Angeles / Long Beach might look like this:

Origin Destination Base Rate (40' Dry)

LSA/LGB Carson $300

LSA/LGB Compton $325

LSA/LGB Inland Empire $425

Pier 400 Inland Empire $400

LSA/LGB Fontana $475

When Should You Use Point-to-Point Pricing?

  • If you have high-volume, recurring lanes with a direct shipper where precision directly affects margin. 
  • If the terminal costs, dwell patterns, or facility types in your service area tend to vary to a degree that zones can’t account for. 
  • When you want consistent Dray rates to a city that has multiple zip codes.
  • When you're in a negotiation environment where the customer will push back on rates lane by lane, and you need defensible data behind each number.
  • If you have a tight, localized geographic network 

With Dray Insight you can manage your team's full rate profile in one central dashboard, whether it's zone or point-to-point pricing. Get started today or book a demo with our team.

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