COMMERCIAL PRICING & FREIGHT BASIS

Basing-point pricing

Also called
Reference-origin freight pricing
Reading time
3 minutes

Basing-point pricing calculates a delivered selling price using a designated reference location for freight, even when the physical shipment starts elsewhere. The agreement defines the pricing formula.

BASING-POINT PRICING IN PRACTICE

  1. Identify the referenceState the basing point and formula.
  2. Record the actualPreserve shipment origin and carrier cost.
  3. Compare transparentlyReconcile price against the agreement.

Use the agreed units, actual records and approved procedures for your operation.

A WORKED EXAMPLE

$300 reference freight. $180 actual cost.

Assume the seller’s formula uses $300 of freight from its basing point. The goods actually ship from another warehouse at a $180 carrier cost. The $120 difference explains why the formula and actual transport cost need separate records. Whether the customer pays the reference amount follows the agreement; these invented figures establish no charging entitlement.

WHAT THIS MEANS FOR YOUR QUOTE

Agree the requirement before comparing quotes

Use the actual shipment, stock and service requirements. Record the billing unit, included work and responsibility for exceptions.

Put this term to work. Use the 3PL pricing and rates guide for the wider invoice context and the guide to comparing 3PL quotes to compare the same scope, activity profile and billing units.

A LITTLE MORE CONTEXT

Questions about Basing-point pricing

Must goods leave the basing point?

No. The reference and actual origin can differ.

Is the freight component the carrier invoice?

Not necessarily. The commercial formula and transport expense can differ.

Does a closer warehouse automatically change the selling price?

No. Review the pricing formula separately from the physical network.

Source & example notes

Definition and operational example prepared by 3PL Hub. Examples describe hypothetical requirements; verify the actual records and agreed procedures for your operation.

Quantities, costs and scenarios are illustrative, not operating targets, approved handling instructions or guarantees. Source guidance reviewed 22 October 2026.

Last updated: · 3PL Hub

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