c) Open Rates and Advalorem Rates

Open Rates and Ad Valorem Rates are two important concepts in international marketing logistics, particularly in the context of shipping and freight. They play a crucial role in determining the costs associated with transporting goods across international borders. Let's delve into each of these concepts in detail:

Open Rates:

Open Rates refer to the charges applied to shipments based on the actual space occupied by the goods being transported. These rates are typically used in the context of containerized cargo, where the shipping charges are calculated based on the volume or weight of the cargo. Open Rates are more commonly used in maritime shipping, although they can also be applicable to other modes of transportation such as air freight.

Here's how Open Rates work:

1. Calculation Basis: Open Rates are calculated based on the space occupied by the cargo within a shipping container. This can be measured in cubic meters or weight, depending on the agreement between the shipper and the carrier.

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