Loss Rate

Loss Rate refers to the percentage of quantity or value of goods lost due to damage, deterioration, shortage, theft, etc., in foreign trade transportation, warehousing, or production, relative to the total quantity or value. It is commonly used in insurance claims, contract quality clauses, logistics performance evaluation, and cost accounting. Usage scenarios include: calculating deductibles or compensation ratios in marine insurance; letters of credit requiring submission of loss rate certificates; long-term supply agreements specifying acceptable loss ranges. Note: Loss Rate differs from 'wastage rate,' which mainly refers to normal process loss in production, while loss rate emphasizes abnormal losses; compared with 'shortage rate,' loss rate covers a broader scope, including quality changes. In practice, the calculation basis (e.g., shipped quantity or arrived quantity), inspection standards, and responsibility attribution should be clarified to avoid disputes. If the loss rate exceeds the contractually agreed threshold, the buyer has the right to claim compensation or reject the goods.