Absorption

1) C (1) Carrier Rates: Carrier absorbs the cost of special services or privileges and does not include the freight charge, it is called absorption. The special charges may be for switching, lighterage, or wharfage. 2) Purchasing: Practice of seller paying for some of the freight charges so as to equalise freight costs with that of a competitor firms for order entry and processing and possibly for transmitting directions for shipping, checking on inventories and lead times, and billing.