Equalization refers to a monetary allowance provided to customers in specific shipping scenarios where cargo is picked up or delivered at a location other than the origin or destination indicated on the bill of lading (B/L). This provision is typically covered by tariff publications. It serves as compensation for additional charges incurred by the shipper when delivering cargo to a carrier-designated port that may not be the closest port to the supplier. Equalization ensures fairness and cost-sharing between the carrier and the customer, balancing the financial impact of deviations from the standard shipping route. By offering this allowance, the carrier acknowledges and addresses the extra expenses associated with non-standard pickup or delivery points, promoting more flexible shipping arrangements.

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