freight subsidy

A freight subsidy is financial support provided by the government or an organization to help reduce the transport costs of goods. It encourages the movement of products by lowering shipping expenses, which can benefit producers, consumers, or specific industries. Essentially, it acts as a financial incentive to make transporting goods more affordable, potentially boosting trade, supporting local industries, or achieving economic or social goals. By subsidizing freight, policymakers aim to improve supply chain efficiency and promote affordability in goods distribution.