The Minimum Charge serves as a price floor set by carriers to ensure they can cover their operational costs, even when discounts are applied based on your shipping agreements.
Here's the Article to learn more about Minimums:
The Minimum reduction is another key outcome of the negotiation process. As a shipper, you can negotiate a guaranteed minimum discount, ensuring that your shipping costs are reduced by at least a set amount, allowing you to achieve additional savings
Example:
Before negotiation of Minimum reduction:
Published price on a Service: $10
Service Discount based on agreement: 90%
Minimum price set by the carrier: $8
Net Payment/Cost: $8
After negotiation of Minimum reduction:
Published price on a Service: $10
Discount based on agreement: 90%
Minimum price set by the carrier: $8
Minimum reduction $3
Net Payment/Cost: $5