A shipment that is subject to a premium rate will apply unless which of the following is offered?

The correct answer is that a contract rate or spot rate can exempt a shipment from a premium rate. A premium rate typically applies to freight that requires expedited shipping or presents additional handling challenges. However, if the shipper and carrier have a pre-established agreement, known as a contract rate, or if a spot rate is offered for a one-time shipment, these arrangements can bypass the need for the premium rate.

Contract rates are typically negotiated ahead of time based on long-term shipping needs, while spot rates are usually calculated for immediate shipments under current market conditions. Both types of rates can provide cost-effective alternatives to premium pricing, allowing shippers to plan and manage their shipping costs more effectively.

To clarify the other choices, a customs clearance rate refers to the fees associated with processing a shipment through customs, and while it is an important part of international shipping costs, it does not affect whether a premium rate is applicable. An insurance rate pertains to the cost for insuring the shipment against loss or damage during transit and does not directly impact the premium rate structure. Finally, "No applicable rate" implies that there isn't a rate that would be relevant, but if a shipment is subject to a premium condition, this option would not provide a basis for exemption either.