Once we have found a company that meets our shipping needs, we need to reach an agreement with that transportation company.
Establishing an agreement with the transport company will guarantee us some fixed or approximate costs, according to the characteristics of our shipments to have more or less an orientation of what they can cost us and which are the advantages that this company offers us.
That is to say, to make an agreement with a transport company is to make a free agreement between both parties subject to the regulations in force that may affect as long as it benefits both parties.
Types of agreements with transportation company
Depending on the client’s needs, several agreements can be established between the companies, since at all times we are talking about a single contract, but there can be several types of agreements.
A company generates all its sales and the transportation company delivers to different points that have been previously scheduled. Or, it transports them to a warehouse and, as sales are made, distributes them to all locations.
For example, we have 60 pallets and we take them to a warehouse and every time a sale is made, according to the agreement the transport company is in charge of their distribution.
This agreement consists of agreeing between a client and a transport company on certain conditions, always taking into account certain variables, such as a route, weight or kilometers.
For example, they contract a transport company by the kgs they load and at the end of the month the agreement and the agreed price is based on the final kgs. Another example could be to contract a company for the routes it has performed and establish a fixed price per route.
Agreement for internal transportation
This type of agreement is made on ships or ports that need to carry out internal transports in their facilities, that is to say, in this type of transport the company that sends and receives the goods is usually the same.
For example, this type of shipment is often carried out at ports or airports to transport containers or to take goods from Ship 5 to Ship 34.
This agreement is made to make international trips on a regular basis, as in the case of a farmer who has to take his product or raw material out of the country every month.
Commitment in agreement with transportation company
This type of agreements usually have more committed prices than if they were single trips, so a commitment and loyalty from the client is always required, since if the agreement is not fulfilled, it may be possible to establish a stoppage for damages and prejudices.
Types of agreements with transportation companies according to the vehicle to be used
Depending on the vehicle to be used in the transport, one type of agreement or another can be made, since it is not the same if a daily rigid truck is agreed as a tauliner, etc.
Form of payment
Once all parts of the agreement have been negotiated, a form of payment and prices are established, which can be in cash or by opening a line of credit for payment in 30 or 60 days.
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Macarena Álvarez Plaza Update: 04/11/2023 José Escudero Specialist in logística y transporte