deferred rebate

A deferred rebate is a retroactive refund or credit given to a buyer after they have paid the full price for a product or service, such as transportation. In the shipping industry, deferred rebates were part of the liner conference system, where shipping companies agreed on rates and sailing schedules to regulate competition. Regular shippers who exclusively used conference vessels for a set period would receive a percentage of the freight rate back as a rebate. This system aimed to protect shipping companies that provided consistent service from competition by casual vessels offering lower rates. While sometimes criticized for potentially creating monopolies, the system was argued to ensure reliable service for shippers.12