Transparent Pricing Policy

Transparent Pricing Policy

Last updated: 2020-09-21
Table of Contents

1. Introduction
2. Charges Included in the Quote
3. What charges are not included in the initial Quote
3.1. Platform Charges
3.2. Charges between Buyer and Seller
3.2.1. Government and Passthrough Charges
3.2.2. Free Time and Storage
3.3. Price adjustments due to rate validity
4. Additional services which Buyers can add to the Booking
5. Additional services or changes that may occur during the shipment lifecycle
5.1. Buyer Initiated Charges
5.2. Seller Initiated Charges
6. Notification of charges being added
6.1. Shipment Adjustments that require Buyer approval before a Seller can apply them
6.2. Shipment Adjustments that a Seller may apply before Buyer approval is received

1. Introduction

International shipping presents many unknowns. Freightos is committed to reducing the uncertainties with defined and transparent pricing. When booking through Freightos, Buyers will know what is included in their Quote, what is not, and what additional services may come up during the lifecycle of the shipment. All Sellers working through the platform abide by the same rules covering which costs must be included upfront. This covers the Sellers’ agents and subcontractors and their services, not just the services that are being provided directly by the Sellers.

Quotes retrieved through the website are based on the information provided at the time of booking. If the actual shipment information (ie. load size, weight, is it palletized, etc.) differs from the information originally provided, the Seller will update the shipment details, as set out in the Sellers Standard Operating Procedure, to charge accordingly. The Buyers will see this information in the shipment page.

Implementation of this policy is directly between Buyers and Sellers. After the Sellers adjust the cost of the shipment the Buyers are notified of the change. If Buyers see an issue with one of the Quotes, and believe they have been charged unfairly, and should have been presented upfront, a a dispute can be submitted. The dispute would be related to the validity of specific shipment charges. Transit Times are not guaranteed and are therefore not a cause for dispute. Likewise, damage to the shipment must be followed up with the insurer and are not related to shipment charges.

This policy may change from time to time however for the sake of transparency, the one in place at the time of booking shall govern that shipment.

2. Charges Included in the Quote

The following are standard charges which must be included in an issued Quote from Freightos Sellers. If a Quote is requested, and the below services are applicable, Sellers must provide the pricing automatically. If Buyers do not request these services but require them post-booking, the Sellers will add the charges to the shipment accordingly.

  • Main freight services
    The principal freight service for the main mode booked, such as the cost of Air Freight, Ocean Freight, the Courier transportation service or the direct trucking rate.
  • Associated documentation and services
    For example, Export Clearance, AMS, Bill of Lading Charges, AES, Telex.
  • Required fuel and security surcharges
    Fuel Surcharges, BAF, X-Ray / Screening Fees.
  • All loading, handling, and facility moving charges required according to the agreed transportation terms with the Supplier or the Customer
    Handling charges, Container Freight Station costs, Airport Transfer Fees, Origin Charges, Stuffing / Destuffing and any loading related costs.
  • Pickup, delivery, and associated charges
    Fuel, 2 Days of Chassis Fees, Pier Pass.
  • Accessorial services associated with pickup and delivery
    Liftgate, Residential
  • Overweight containers
    The price for handling overweight containers should be included when requesting the option on the search page.

Sellers can present multiple service level offerings, differentiated by transit times and routing, carrier type criteria. For each service, Sellers will include a non-binding transit time range, validity dates for gate in and explanatory comments to further explain a specific surcharge.

Sellers cannot make a charge adjustment for the below items:

  • Currency fluctuation.
  • Fees Caused by delays on the Seller.
  • Services related to the above list, which the Sellers forgot to include in their rates, or caused by operational deficiencies, including missing rate filing and documents after the shipment has departed.

Shipments delivered to an Amazon Fulfillment Center can be requested in a different user flow and all relevant charges will be part of the returned Quotes. Sellers will include the following service fees upfront, matching the Buyers’ request criteria, as they are selected by Buyers on the website:

  • Palletization / Shrink Wrap and Labeling.
  • Box Labels for Fulfillment and for UPS / Fedex.
  • Fulfillment Center Appointment.
  • Full Container Load Rework.
  • Importer of Record / EORI services.

3. What charges are not included in the initial Quote

3.1. Platform Charges

  • Freightos’ Platform Fee
    This fee helps us run and offer ongoing support. The Platform Fee will be included on the checkout page prior to booking.
  • Disbursement Fee
    If Duties and Taxes are paid through a Third Party Customs Broker facilitated by Freightos and the Buyers will choose to pay with Credit Card, this fee will occur.
  • Convenience Fee
    When shipments are booked with Freightos’ Credit and paid with Credit Card this fee will apply.

3.2. Charges between Buyer and Seller

3.2.1. Government and Passthrough Charges

  • Duties & Taxes levied by the relevant government authorities
    These costs are only calculated when the entry submission is sent to the Customs authorities with the proper goods classification, prior or after arrival and are not included as part of the original Quote The Sellers or the Sellers’ appointed customs broker will contact you to arrange payment of any customs duties to finalize the process of clearing the goods for entry. When a third party broker indicated on the platform is providing the entry service, Buyers will be making the duties and taxes payment through Freightos.
  • Costs related to Customs and Security Inspections, Customs regulations or Other Government Agency (OGA) requirements, including:
    • More than 5 HS Classification Codes for the Customs Entry submission.
    • Tariff reclassification or other Government investigation costs.
    • All costs or penalties associated with a Customs Inspection, including, but not limited to: destuffing / stuffing containers, moving containers to the right facility, warehousing and storage, and returning the cargo back to the port / airport facility. The above fees may be passed from the Carrier or Customs office directly to the Sellers, who will charge it to the Buyer. Sellers are permitted to add a processing charge for arranging these services.
    • LCL shipments may also be subject to Customs Holds and Examinations and related carrier charges. The supporting documentation for these charges may not be available from the carrier on a per shipment level as these are shared containers. Forwarders will issue their own invoices when this is required.
  • Commodity specific charges
    Some commodities require specific procedures or documentation. For example, when shipping foodstuffs, dangerous goods or pharmaceuticals, shipments may be subject to additional services like fumigation or paperwork, permits or licenses required. Special handling may be required for fragile goods or other commodities.

3.2.2. Government and Passthrough Charges

  • Free Time and Storage
    At either port, rail terminal or warehouse at origin or destination there may be detention, demurrage or storage fees associated with delays in the customs process due to late submission of documents or Customs Examinations.

3.3. Price adjustments due to rate validity

  • Rate Validity
    If a shipment is not brought to the port before the expiration date of the rate booked, the shipment may incur a General Rate Increase (GRI) for Ocean shipments or a rate change for Air/Express shipments. In this the following must be noted:

    • The increase should only be added if the delay was caused by the Buyer or the Consignor.
    • The rate changes should be reported within 5 days of sailing and/or departure.
    • The increase should be inline with the price on the platform on the day of Gate In or Departure.
    • Freightos will audit these changes from time to time but we ask Buyers and Sellers to monitor the charges carefully as well.

4. Additional services which Buyers can add to the Booking

Insurance / Cargo Protection, Customs Brokerage and related services including Bonds can be added as additional services on the platform. Buyers will be able to select them on the search page and those can be either provided by a third party or by the Sellers themselves.

A Seller offering Customs Brokerage services must include the below items:

  • Import clearance, ISF Filing. Services must include up to 5 HS Codes for classification.
  • Single Entry Bond, Continuous Bond and ISF Bond. The cost of these items depend on specific details of each shipment, like the value of goods or if the goods need approval from a specific governmental agency, for example the Food and Drug Administration (FDA), among others.

With regards to Insurance / Cargo Protection, the cost of obtaining an Insurance / Cargo Protection policy is calculated as a percentage of the total value of goods being shipped with a minimum amount charged. When filing a claim, insurance policies have a deductible, which is the amount that Buyers must pay, out of pocket, before the insurer will pay any claim. If you are booking insurance through Falvey Insurance Group, your deductible will be 0. If you are booking through your contracted Seller, the details of your policy, including the amount of the deductible, can be received directly from them.

5. Additional services or changes that may occur during the shipment lifecycle

Freightos has policies in place to ensure that Sellers are able to provide Buyers accurate Quotes from the outset. That said, it can happen that the information used to retrieve those Quotes may change, Buyers may decide to change their shipping requirements after booking or Sellers may find discrepancies between the Booking request and the real requirements to operate the shipment. These situations are likely to result in price adjustments.

5.1. Buyer Initiated Charges

  • Weight, quantity and/or dimension adjustments
  • Unsuccessful pickup / delivery attempts
    • Time taken to load / unload a shipment. Waiting Time is calculated by the trucking company contracted by the Sellers. Typically, included loading/unloading time is 1-2 hours, depending on the location type. An hourly cost for loading/waiting time is added once Sellers are notified of the service provided by the trucking company in charge of pickup/delivery.
    • Free Time at port may be exceeded due to port or warehouse congestion, an improperly packaged shipment, or missed appointments due to poor road conditions which can not be anticipated.
    • Container Per Diem charges connected to Demurrage and Detention, incurred due to missed pickup or delivery.
  • Late, incorrect or insufficient submission of documentation
    • Late changes to commercial documents that require an amendment of the Bills of Lading.
    • Missing Export Licenses from the Supplier at origin.
    • Failure to submit a Power of Attorney (POA) or the correct details to the service provider performing Customs Brokerage, causing delays and unexpected Storage costs.
  • Change in the delivery requirements
    • Changes to the pick-up/delivery address will require adjustments which will vary according to the nature of the change, and the stage of the shipment when it is advised.
    • Any Amazon-specific value add services requested post-booking, including but not limited to the required palletization, appointment, warehousing and labeling services.
    • Special deliveries, like Drop Container, Trade Shows, White Glove services.
    • Scheduled deliveries.
    • Dedicated or special trucks needed to perform a delivery.
  • Other common situations where additional services may be required
    • Foreign Importer of Record and EORI related services.
    • Change in the shipment Incoterm as agreed with the factory or trading counterpart.
    • Telex Releases, Blind Shipments and other special documentation handling.
    • General labeling and palletization requests, if not requested beforehand.
    • Warehouse Storage and Handling requirements.
    • Request for Customs Disbursement services from the Sellers typically have a fee associated with it.

5.2. Seller Initiated Charges

  • Common situations where a Seller may need additional services to be added to the shipment cost
    • Remote Area Surcharges for Express Shipments.
    • Market repacking rates if a shipment is poorly packed.
    • If the shipment is not ready with enough time to allow Sellers to perform pickup before the Gate In or Validity Date is due, the shipment may be subject to a GRI or a rate change for Air Freight. This time should be more than 3 Business Days.
    • Commodities that do not qualify as General Goods may be subject to changes in the freight rate, additional handling charges, shipment rerouting or potential cancellation of the shipment.
    • Non Stackable cargo: Rates shown for loose cargo on the platform assume that your cargo is Stackable (not fragile, regularly packaged so that other freight may be loaded on top of it)..

Other reasons include events of Force Majeure beyond the control of the Sellers, like natural disasters, port strikes or civil unrest.

6. Notification of charges being added

Sellers are required to explain charges being added on the platform via the messenger tool. The Seller will make efforts to obtain the Buyer’s approval for all charge adjustments before adding costs to the shipment.

6.1. Shipment Adjustments that require Buyer approval before a Seller can apply them

Sellers must review shipments carefully before arranging transport. If there are charges to add that can be known before either pick-up from door locations or arrival at the port of origin, the Seller may not proceed with the shipment until they have received approval of the charge from the Buyer. This will give the Buyer a chance to cancel the shipment if they are not willing to approve the charge, without incurring unnecessary cancellation costs.
If a Buyer disputes one of the following charges, as per our Dispute Policy, Freightos will close the dispute in favor of the Buyer if there is no written evidence showing they accepted the charge.

  • GRI’s that are implemented before the Seller receives the goods.
  • Charges due to corrections to the shipment’s booked origin/destination. The initial quote costs are only valid for the Buyer’s specific booking details.
  • Changes in shipment dimensions. Sellers are expected to verify shipment dimensions so the buyer can be made aware of any changes to the shipping cost before allowing the shipment to depart. This does not apply to Express shipments.
  • Any service the Seller may offer the Buyer during the life of the shipment to upgrade the booking.

6.2. Shipment Adjustments that a Seller may apply before Buyer approval is received

A Seller is expected to keep their Buyer’s shipment moving as smoothly as possible. If a charge is incurred during the life of the shipment which is beyond the Seller’s control, the Seller must notify the Buyer via the messenger tool to explain the charge before applying it on the platform. They will still be able to add the following charges to keep this shipment moving.

  • If they judge the delays and associated costs of waiting for Buyer confirmation will ultimately cause even higher costs for the Buyer.
  • If the Buyer is unresponsive to the Seller’s request for over 2 Business Days.
  • If the Buyer is notified of valid charges and rejects them during the life of the shipment. The Buyer may dispute the charges by submitting a Dispute.

For common examples, see Section 5.2.