Standard Operating Procedure (“SOP”) for Sellers
Last updated: 2018-05-06
Table of Contents
This SOP provides guidance on how logistics service providers can sell services on the Freightos Marketplace. As the platform evolves, these rules may as well. Since all changes are binding and will govern how you sell on the Freightos Marketplace, we recommend that you review this SOP every three months to stay up to date. Active participants of the Freightos Marketplace may be notified in writing upon substantial changes. You can contact us at firstname.lastname@example.org with any questions and feedback is welcomed. The use of the Freightos Marketplace is also subject to the Freightos Master Services Agreement (“MSA”). All capitalized words in this SOP shall have the meaning found in Freightos Glossary.
2. Welcome to the Freightos Marketplace
The Freightos Marketplace is an innovative online platform that makes global trade frictionless, matching businesses looking for a better freight experience with a global network of first-rate logistics service providers.
The Freightos Marketplace enables freight forwarders, brokers, carriers, insurers, or other professional vendors of freight services (“Sellers”) to easily and instantly sell freight services to Buyers. Freightos regularly drives new Buyers to the Freightos Marketplace, where you can offer them an excellent freight experience.
3. What Freightos provides Sellers
Freightos has built the Freightos Marketplace as a user friendly platform to allow Buyers and Sellers to easily find each other and to generate instant quotes to facilitate entering into freight service contracts. The contract is always directly between the Seller and the Buyer and Freightos is not a party to that agreement in any capacity. Rather Freightos is a facilitator of the exchange of freight services between Buyers and Sellers, and Freightos provides you the Seller with the following services:
- Automation of generating price Quotes based on the Rates you provide.
- Advertising and promoting your Freight Services on the Freightos Marketplace.
- Supporting the establishment of a commercial contract between you and Buyer.
- Providing a platform for communications and document exchanges between you and Buyer to facilitate the smooth operation of the transaction and allow auditing, tracking, dispute resolution and rating of the transaction.
- Acting as your collection agent to collect payment from Buyers on your behalf for the services provided.
- Providing the Freightos Payment Guarantee – Freightos acts as agent of the Seller (payee) and guarantees payment in full for the amount in Seller’s Quote and a limited list of additional services (see Section 5.7.1 for more details).
Freightos does not act as a freight vendor, forwarder, insurer, broker, contracting agent, customs broker, or other representative, and neither does Freightos act as a Buyer, Shipper, Consignee, Importer of Record or principal party of interest. You are responsible for performing all obligations to provide freight services under any agreements with the Buyer.
Our team is here to help things go smoothly, on a best efforts basis, and help you focus on what you do best, moving freight. Please feel free to contact us at any time.
4. Becoming a Freightos Marketplace Seller
If you would like to become a Marketplace Seller, please contact us. In order to maintain the quality of Freightos services, Freightos does not automatically accept all potential Sellers onto the Marketplace and chooses only Sellers capable in our assessment of providing the high standards of service expected by the Buyers.
Sellers who wish to sell on the Freightos Marketplace must have and maintain all necessary licenses in all applicable jurisdictions to sell the freight services that they offer. In addition, Sellers must be in good financial standing and abide by all applicable laws. Sellers are also responsible for ensuring that all of Seller’s subcontractors involved in providing the shipment have and maintain all necessary licenses and abide by applicable laws. Sellers shall be fully responsible for all actions taken by itself and by agents and/or sub-contractors on its behalf in fulfillment of its services through the Marketplace.
In order to Sell on the Freightos Marketplace, Sellers must have the ability to provide accurate and up to date pricing and automated shipment documentation and tracking data in a digitized format and allocate necessary resources to manage their Freightos Marketplace presence (including pricing, operations, accounting and relevant compliance requirements).
Prior to accepting a Seller to the Marketplace, Freightos may request customer references.
5. How does it work?
The Freightos Marketplace brings Buyers and Sellers of freight services together on one platform. A Buyer looking to ship goods will enter his or her specifications into the designated fields, click “Search” and will instantly see automatically generated price Quotes, provided by Freightos Marketplace Sellers. When a Buyer orders a Seller’s services by booking a Quote, an Order is generated which is a legal and binding agreement between the Buyer and the Seller, subject to Verification of the Order by Freightos. Following Verification by Freightos, Seller shall commence execution of the Order as detailed in this SOP. Freightos is not a party to that Order and does not act as a freight vendor, forwarder, insurer, broker, contracting agent, customs broker, or other representative, and neither does Freightos act as a Buyer. You will be responsible for full execution of the Shipment from Pickup through Delivery. Freightos charges Sellers a Seller’s Fee for each Order as detailed below.
Below is a step by step description of how the process takes place:
5.1 Seller Onboarding
The Freightos Seller onboarding process includes a set of activities to try to ensure all participating Sellers are aligned with Freightos Marketplace standards. Here is a brief description of the onboarding activities.
- Online Seller Registration Agreement – Seller completes and signs the Freightos Marketplace Sellers Application Form.
- Introductory Kick-Off Meeting between Freightos and Seller.
- Introduction of Freightos Seller team account manager and Seller’s designated contact person.
- Marketplace SOP and Freightos Pricing Requirements review.
- Pricing: Seller shares and reviews service scope and pricing with Freightos usually using Excel sheets (occasionally with a direct API connection)
- Operations: Introduction to operating and accounting processes and explanations on Order validation, handover to Seller and shipment execution.
- Accounting: Payment processing, invoices and purchase orders.
- Training and Onboarding – Freightos provides Seller with professional system training.
- Pricing: Rate setup and management, quotation review and issuing custom quotes to Buyers.
- Operations: Awarding shipments (SLA), uploading freight documents, updating shipment statuses and system communication.
- Publishing Rates: Freight Rates Setup, Processing and Validation
- Complete Freightos-provided data templates, review and publish.
- Data Interchange Setup
- Identification of Seller TMS to automatically pull shipment milestone information, carrier booking data, fees and surcharges.
- Ongoing Education and Monitoring
5.2 Seller Supplies Rates to Freightos
As a participating Freightos Marketplace Seller, you will provide Freightos with Rates to publish and accurate transit times for Freight Services that you would like to make available to Buyers, in one of the ways detailed below.
The Rates that you provide will be used by Freightos’ unique routing and pricing engine to generate a Quote based on your Rates, and the criteria entered by the Buyer, and are binding on you. Should a Buyer book a Quote (which was generated based on your Rates), it becomes a binding contract between the Buyer and the Seller, documented in an Order.
If a Buyer saves a Quote, it will remain binding throughout its validity, and if booked, shall become a binding contract documented in an Order. Rates provided must be both comprehensive and exact, as you will be paid for the exact amount in the Quote which is based on the Rates that were uploaded and activated.
Below you will find detailed instructions on providing Tariffs, that are the basis for your Rates on the Marketplace.
5.2.1 Provide Freightos with Tariffs and Fees
Seller shall provide Freightos with Tariffs which are Excel spreadsheets containing Rates which shall serve as the basis for generating a Quote (here you can find several examples). A Tariff is a list of freight services and associated prices by origin/destination and service levels along a specific trade lane or group of trade lanes, which is differentiated by mode of transport and load, and includes relevant surcharges. Sellers can choose to manage a Tariff with their sell rates, or to manage Tariffs with the buy rates they get from Carriers or co-loaders, and they then define a markup level to sell at. Freightos requires accurate and comprehensive pricing information to be included in a Tariff, including:
- A list of services with origin/destination and rates for each service (typically each row in the Excel sheet will be a service)
- Comprehensive and transparent list of all applicable surcharges which will appear on published Quotes.
- Optionally multiple service level offerings (differentiated by transit times, validity period, carrier type, etc).
- Transit time range for each service offered.
- Particular carrier listings (optional).
- Validity dates.
- Comments and any explanatory comments to further explain a specific surcharge to the Buyer.
184.108.40.206 Alternative option for pick-up and delivery rates
It is a unique feature of the Freightos Marketplace that Buyers have the option to receive door to door Quotes in a fully automated way. This is achieved by using the Freightos routing engine to combine multiple legs of the shipment into a full, door-to-door route. For example if you provide Rates for pickup, origin charges, port-to-port air or ocean, destination charges and delivery, Freightos can combine these into a single door-to-door Quote on your behalf. In case you do not have your own pickup/delivery and customs clearance Rates in various countries, you may authorize Freightos to include, for example, local trucking rates in the Quote based on a benchmark of current market rates, or based on specific service providers such as a local trucking broker, in order to complete the door-to-door offering. Of course you remain responsible for honoring the price and performing the service.
220.127.116.11 Service Levels and transit times
When a Seller provides Tariffs for activation in the Marketplace they must specify the service level and estimated port to port transit time expected for the service as follows:
- For Air specify the carrier and transit time for each service and state the service level for each: “Direct” (for direct flight only) or “Indirect” (for indirect flights) or “Consol” (for consolidation services).
- For Ocean specify the port to port transit time for the service(s) you intend to provide. Routing details for each service must be provided (ie. transshipment port)
- For Express specify a door to door transit time.
Seller must execute the shipment operationally in accordance with the Quote and service levels provided.
Freightos also adds an estimated transit time range for the full route quoted. This estimate is calculated based on a model presented in Appendix A. Though this estimate is not binding we do measure the actual transit times and expect them to fall within the estimated range. Freightos stores this information and may use it for modeling and rating purposes, and may publish this information.
18.104.22.168 Rate validity
When Seller provides Tariffs for activation in the Marketplace you must specify when Rates are valid from and valid to (“Rates Validity Period”). Please provide updated Tariffs prior to Rate expiration, for example on a monthly basis a few days before the end of each month. If no expiration date is provided, the Rates shall remain valid until we receive a specific notice that they have ceased to be valid.
Freightos supports automatic quoting for a limited number of key accessorial charges. Please include pricing for these accessorials in your Rates. These accessorials will be added to the Quote as set forth in the Pricing Requirements for Sellers. For other accessorials that may be added to a given shipment, please provide pricing to be used as needed. If you provide accessorials and have not provided a price, then Freightos shall apply the market price to the Quote and you shall be paid same market price as paid.
22.214.171.124 Delivery to Fulfillment Centers
Seller is encouraged to provide services for delivery to Fulfilled by Amazon (FBA) warehouses and other fulfilment centers e.g.: labelling, palletizing, consolidating shipments at destination, scheduling delivery to one or more warehouse, etc. Sellers interested in offering this service will provide Freightos with the following rates which will be included in relevant Quote:
- Palletization – per CBM
- Labeling – per box
- Unloading/rework fee for FCL
- Flat delivery fee for appointments
- UPS Labeling charge – per box
- Full Container Load Rework
5.2.2 Provide Freightos with Freightos WebCargo B2S (Buy-to-Sell) Instructions
If the Seller has a Freightos WebCargo subscription, air freight rates can be shared through the Buy-to-Sell (B2S) Engine. In that case, the Seller has to communicate valid business instructions so that the B2S Engine can produce sell rates on behalf of the Seller based on preferred airlines, a markup strategy and a definition on the source for these calculations (whether Market, Contract or Promotional). The Seller will still need to produce relevant sheets for origin/destination charges and pickup/delivery, with the applicable conditions explained above in 5.2.1
5.2.3 Quotes terms and conditions
All Quotes on the Marketplace are governed by the General Terms and Conditions that can be found here.
5.2.4 Business days
For this SOP a Business Day is Monday through Friday from 09.00 am through 06.00 pm EST, when US banks are open. When this SOP refers to a Seller’s Business Day these hours apply to the Seller’s place of business on days when banks in Seller’s country are open, and when this SOP refers to a Buyer’s Business Day these hours apply to the Buyer’s place of business when banks in Buyer’s Business Day are open.
5.2.5 Quote Currency
Rates may be submitted to Freightos in any currency, and will be converted to US$ or to the Buyer’s currency at the time of quoting. The conversion rate will be the middle rate known at the time of the generation of the Quote. If the Quote is given to Buyer in a currency other than US Dollars, then Freightos shall be entitled to include a FX conversion markup to the Quote which will not be paid to the Seller. The Quote currency will be the ultimate amount paid by Freightos to the Seller, irrespective of currency fluctuations between Quote and payment. Currently, invoices from Seller must be denominated in US$ as will purchase orders and payments from Freightos. Other currencies may be offered in the future.
5.2.6 Additional Services Offered to Buyer
126.96.36.199 Customs Brokerage
For international shipments, sellers must offer customs brokerage for import & export customs clearance (which they may subcontract to a third party) and any fees related to Advanced Cargo Reporting requirements in the respective origin or destination country of the specific shipment. All customs brokerage may only be performed by a licensed agent. Seller should provide the Rates of such handling reflecting standard brokerage of up to 5 individual commodity classifications, with clear charge description for any additional HS/HTS code.
Seller must provide its power of attorney (POA) form to Freightos during onboarding. Freightos shall have the POA filled in by Buyer, however Seller is solely responsible for checking that it is holding the POA at the time of performing customs brokerage and that the POA is filled in correctly. Seller shall be responsible for the accuracy and legal status of the POA and shall notify Freightos in a timely manner if it needs assistance in having any POA updated or amended.
Seller shall be responsible to ensure and monitor performance by Seller’s customs brokerage agent.
For shipments into the U.S., if a Buyer selects the Customs Brokerage additional service, Buyer may also request to purchase a U.S. Customs Bond. The following standardized services must be offered by all Sellers on the Freightos Marketplace for imports to the United States:
|Optional service for U.S. importing||Current price|
|Single Entry Bond (U.S. Customs & Border Protection)||The greater of $50 or 0.5% of the total entered value of the goods*|
|Continuous Bond (annual, U.S. CBP)||$500*|
|Importer Security Filing Bond (= ISF Bond, U.S. CBP)||$75|
|Importer Security Filing (“10+2” service)||$50|
* Note: If any goods are hazardous, subject to FDA approval, or fall into other specific subcategories, these charges may vary.
Seller must provide a copy of the customs bond purchased as part of the shipment to the Buyer. Freightos may in the future allow Customs Bonds to be sold separately to the freight service.
If a Buyer selects the U.S Customs Brokerage additional service, in order that the Shipment not be held up or fines incurred, the Importer Security Filing (“10+2” service) must be filed by Freightos’ Sellers or by Freightos Sellers’ Customs Broker on behalf of the Buyer, unless the Buyer specifically requests not to have the Seller handle ISF filing on their behalf. If not filed in a timely manner, Seller shall be liable for extra costs incurred and the Freightos Payment Guarantee will not apply.
Seller is responsible for collection of duties from the Buyer, including notifying the relevant parties. The Freightos Payment Guarantee does not cover payment of duties.
If Buyer does not select the Customs Brokerage additional service then Buyer takes full responsibility for Customs clearance.
Seller must provide General Cargo Insurance services (sometimes known as marine insurance) to be included at Buyer’s request. Insurance tariff and minimums must be provided as part of the onboarding process and will then be added automatically as part of your freight quotes. A Seller-provided Insurance tariff includes:
- Premium calculation, e.g., Insurance premium (price) as % of value of goods + cost of freight + cost of insurance
- Minimum insurance premium (price)
- Maximum deductible of US$500
Should Buyer choose to purchase insurance from Seller on the Marketplace, Seller shall be fully responsible in helping Buyer settle all insurance claims. Seller is required to upload individual insurance documents to the Marketplace and make them available to Buyer and to fulfill all of the insurers’ requirements including but not limited to provision of documents within the time periods specified in the policy. In the case of a claim Freightos is not involved and Seller shall make all reasonable endeavors to ensure that Buyer’s claim is handled in the best professional manner.
Freightos is not involved in settling claims and all claims must be settled directly between Seller and Buyer.
Freightos may in the future separate the offering of cargo insurance from freight services.
188.8.131.52 Foreign Importers into the U.S.
Seller may provide a service for obtaining an U.S. EIN (employer identification number) for Buyers who do not have a U.S. registered business. Sellers may choose to charge or not charge for this service.
5.2.7 Mechanisms for providing and updating Rates on the Freightos Marketplace
Rates can be provided by the Freightos Marketplace Seller in one of several ways:
- Managed – You send us Rates in your own Excel formats and Freightos Data Services performs initial upload and data maintenance of your rates. This is currently offered at no charge for the first six months of Selling on the Marketplace. Freightos may decide to charge for this service and will provide at least one month’s prior notice.
- Electronic – Rates shared with Freightos Marketplace via electronic integration (i.e. API, EDI connection). This requires a fully documented, stable modern API.
- Saas Enabled – If you are a Freightos Accelerate and/or Freightos WebCargo Subscriber it is possible to automate sharing rates on the Freightos Marketplace. This is done by creating specific resell markup instructions for the Marketplace based on loaded Tariffs or database rates.
- Self Serve – Freightos provides Excel tariff templates for Seller to manage data uploads to the Freightos Marketplace directly. Your account manager can help you set up this option and train your team to manage the Rates on an ongoing basis.
For more details on the different options please speak to your account manager.
5.3 Freightos Attracts Buyers to Freightos Marketplace
The Freightos marketing team attracts Buyers to the Marketplace using a variety of online and offline channels. In order to facilitate increased exposure to potential Buyers, the Freightos Marketplace functionality including your Quotes may be made available within third party web sites or software that uses the Freightos API. In addition, Freightos may choose to provide specific Sellers with additional brand visibility by publicizing their names or logos as Sellers. In some cases, Sellers names, logos and company profile description may also be used on either the Freightos Marketplace or on industry freight publication for PR purposes.
5.3.1 Buyer Searches and Receives Quotes
When a Buyer searches for a Quote he will be entering the following parameters:
- Origin and Destination (including location types).
- Weight, Dimensions and Load Units.
- Ready for Pickup Date.
- Additional requested services such as customs brokerage, customs bond or insurance.
- Details regarding delivery to fulfilment centers if required.
- Whether or not the cargo contains hazardous materials.
- Whether or not the shipper is a Known Shipper (for air shipments in relevant countries).
Freightos will return a list of Quotes from all Sellers matching these specifications, along with estimated transit times window etc. Freightos’ algorithm may hide Quotes which are clearly uncompetitive. Buyers will instantly see Quotes covering different modes as well as the detailed price breakdown of each Quote and leg component.
5.3.2 Buyer Saves a Quote
The Buyer may save a Quote. The Buyer may book a saved Quote at any time prior to the expiration of the validity of the Quote. The Seller may not withdraw a Quote within the validity period, other than in the case of Force Majeure or a technical error, and only after receiving Freightos prior written approval.
5.3.3 Buyer Requests a Custom Quote
If a Buyer cannot find an auto-generated Quote, Buyer may contact Freightos and Freightos may request from Sellers to provide a Custom Quote to the Buyer, through the Freightos platform.
5.4 An Order is Placed by a Buyer
Once a Buyer has chosen and booked a Quote, this creates an Order. The Order is a binding contract between the Buyer and Seller, whereby the Buyer agrees to provide payment to Seller via Freightos in exchange for the Freight Services that the Seller agrees to provide to the Buyer at the stated cost, subject to Verification of the Order by Freightos. At this stage the Order is now visible to you, however you must not commence execution of the Shipment prior to Verification of the Order by Freightos. Freightos and Buyer shall not be responsible for any costs incurred prior to Verification.
5.4.1 Quote Updates After Order Booking
Once a Quote is offered by the Seller and booked by the Buyer, the price in the Quote is absolutely binding. Limited additional services are allowed but only services detailed in the Freightos Pricing Requirements for Sellers (such as a discrepancy in the dimensions/weight measured by Seller after pickup relative to what was declared initially by the Buyer). These updates can only be made on documented and reasonably incurred costs that are covered in the Policy. Freightos guarantees that Buyer will pay all documented and commercially reasonable additional services covered in the Pricing Requirements for Sellers.
5.5 Shipment Execution
5.5.1 Order Verification
On receiving a new order, Freightos shall review the Order. Freightos Review is a non-binding preliminary check that the basic details have been provided by the Buyer, however Seller must check that all that all of the documentation necessary for execution of the Shipment is in place prior to commencing Shipment and that Seller has all necessary documentation and information to execute the Shipment. Failure to do so will nullify the Freightos Payment Guarantee.
Freightos is not party to any Order and is not responsible for performing know-your-customer due diligence (KYC) on any Buyer on behalf of the Seller or for checking that the documentation is sufficient for completion of the Shipment. Seller remains responsible for its own KYC and documentation requirements.
After Freightos has done this preliminary review, Freightos shall update the shipment to “Order Verified” Status in the Freightos System.
Upon being updated to “Order Verified” Status, an email will be sent to the Seller informing them of the shipment details and asking them to contact the consignor to schedule pick up.
5.5.2 Pickup Coordination
The Seller, or their agent, will contact the Consignor to confirm the specific Pickup Date by the end of the Seller Business Day following the day of receiving the Order Verification email from Freightos.
Seller must employ best efforts to pick up the goods and ensure handover of the Shipment to the Carrier while rates are still valid. Unless excused by Force Majeure or unless caused by changes made by Consignor or Buyer, if Seller picks up and hands over the Shipment after the Rates Validity Period, the initial Quote shall still apply to the Shipment.
5.5.3 Carrier Booking
Once the pickup date is confirmed, the Seller shall make best efforts to book a carrier no later than the end of the next Seller’s Business Day. Seller should update the Freightos’ system or send data with carrier booking information (including ETD and ETA port, BOL/AWB number (house and master) and, where relevant, container number and carrier name). For Express shipments a Tracking number should be provided as well.
5.5.4 Pickup Execution
Prior to actual pickup of the shipment, the Seller, or their agent, will contact the Consignor to arrange specific pickup details. Seller should ensure that all documentation is in order before picking up the shipment. Should Seller commence pickup prior to receiving all necessary documents from Buyer, the Freightos Payment Guarantee shall not be in effect for that Shipment. Once pickup is complete the Seller must update the Shipment Status to “In Transit”.
If a Buyer has ordered a portion of the Shipment on an FOB basis from Buyer’s supplier, then Buyer is responsible for ensuring that Buyer’s supplier executes that portion of the Shipment. Should you agree directly with Buyer’s supplier to execute any FOB portion of a Shipment, the Freightos Payment Guarantee shall not cover this portion of the Shipment and you shall be responsible for all invoicing and collection between you and the Buyer’s supplier. You may not hold up the Shipment or delay execution due to any non-payment by Buyer’s supplier or otherwise and you will be responsible for completing delivery in accordance with this SOP. Note that the charges to the Buyer’s supplier should be commercially reasonable and in line with acceptable pricing in the local market.
5.5.5 Final Dimensions, Weights and Pallet Counts
After pickup, Seller should promptly verify the Load details and communicate any updates to the load to Freightos and Buyer immediately. Please note it is the Seller’s obligation to communicate to the Buyer any price adjustments arising from the load changes and should the Buyer dispute any additional services this will be subject to the Freightos Shipment Adjustments Dispute Process. You are entitled to hold the continuation of the Shipment pending a reply from the Buyer if you believe that the change from the Quote will be substantial or problematic. If you feel the need to document and provide proof of the adjustment please take the actions necessary to prove any additional costs.
In any case adjustments must be added to the system no more than 10 Business Days after delivery of the shipment as detailed in the “Finalizing all Shipment Adjustments” section below.
5.5.6 Hold on Shipment Delivery Due to Buyer Debt
Freightos has the right (which we use as rarely as possible) to instruct the Seller to hold delivery of a Shipment at any time prior to final dispatch to Consignee at destination, if Buyer has outstanding payment with respect to any transactions on Freightos (even to a different Seller). This will be communicated via email from an employee with an @freightos.com email address. The hold may be indefinite, so long as debt is outstanding. Seller shall ensure that the storage cost are kept at minimum level for such Shipment (for example shipment moved to an out of port location), and Freightos agrees to compensate the Seller for reasonable and documented storage costs incurred by the Seller due to Freightos’ decision to delay Shipment delivery, and Seller agrees to cooperate fully with Freightos in respect to holding the Shipment and with communications with the Consignee and Buyer.
Seller may not hold a shipment made through the Marketplace without Freightos prior written approval, which shall not be unreasonably withheld. Should Seller hold a shipment that they did not receive approval for, Seller shall be solely liable for all costs incurred and Freightos Payment Guarantee shall not be valid. Seller may also not hold up or refrain from releasing any documentation which may delay delivery of Shipment without the prior written approval of Freightos.
5.5.7 Delivery at Destination
Seller is fully liable for delivery of the Shipment, whole, undamaged, to the correct address and in the time frame indicated during submission of the tariff until the Shipment is signed for at its destination, and where relevant including but not limited to collecting and paying customs duties and taxes. Seller is and remains responsible even if portions of the delivery of the Shipment are carried out by third party subcontractors or agents appointed by Seller.
Freightos may contact the Buyer and Seller shortly before arrival of the shipment at port (for ocean and air shipments) informing them to be directly in contact regarding the customs clearance and delivery leg of the shipment.
The Seller or their agent will contact the Consignee to arrange specific delivery details. Upon completion of delivery the Seller must update the Freightos system to Shipment Status to “Delivered” and specify the actual delivery date.
If Buyer contests full receipt of goods or claims that goods received were damaged, Seller shall handle dispute in accordance with Disputes section below.
5.6 Order Cancellation
5.6.1 Seller may cancel an Order
Since the booking of a Quote becomes a binding Order, you may only cancel that Order under three circumstances:
- You cannot physically carry out the Order because of Force Majeure. Please note that any change in market conditions or need to find alternate carriers may not be taken into account for cancellation of an Order.
- Should there be a material discrepancy between the details entered by Buyer into the Order and the actual description of the goods or pickup times or other substantial discrepancies, you shall be entitled to cancel the Order and may charge Buyer for any documented and commercially reasonable costs incurred, only following pickup and only up to 20% of the Quote.
- Buyer fails to meet Seller’s internal legal compliance requirements (KYC etc.), as documented for their internal reference by Seller.
Any cancellation by Seller or failure to execute the Order other than for these reasons shall be a breach of contract between Seller and Buyer and Seller may be liable to Buyer for any losses incurred, such as alternate transportation costs, excluding consequential damages to any party. In such cases and in any lack of execution, Freightos and/or Buyer shall be entitled to book the Order with a different Seller in addition to seeking remedies for the breach.
In order to maintain a fair and honest Marketplace, Freightos retains the right to remove Sellers from the Marketplace or take any other necessary measures against Sellers that, in Freightos sole discretion, abuse this Cancellation Policy.
5.6.2 Buyer Cancellation Policy
Should Buyer cancel Order after Seller has incurred costs, Seller shall be entitled to send Freightos an invoice for commercially reasonable and documented costs.
5.6.3 When Freightos might cancel an order
Freightos may cancel any Order during the Verification Process if it believes it not to be a viable Order.
Freightos may notify the parties that the Order has been cancelled at any time on behalf of either party due to non-compliance with Marketplace Rules if:
- On behalf of Buyer:
Seller has not fulfilled all of Seller’s obligations under the SOP and MSA and other Freightos Policies.
In this case, Freightos shall have the right to transfer the Shipment to another Seller (as approved by Buyer), and Seller shall have no claims arising from this cancelled Shipment.
- On behalf of Seller:
A breach of contract has occurred on the part of the Buyer, including but not limited to:
- If Freightos has reasonable cause to believe that Buyer will not perform their obligations per the contract.
- If Freightos believes that the Buyer may not be legally eligible to purchase the Freight Services.
5.7 Freightos Acts as a Collection Agent for Seller
5.7.1 Freightos Payment Guarantee for Sellers
We want our Sellers to feel confident to accept Orders from Buyers via the Freightos Marketplace. Freightos acts as agent of the Seller (payee) and guarantees payment in full for the amount in Seller’s Quote and any additional services as detailed in the Transparent Pricing Policy.
However, Payment Guarantee will not apply if there is a dispute about the delivery or services performed until such dispute is resolved, or if Seller has acted not in accordance with this SOP or with any of the policies referred to in this SOP.
Since Freightos acts as Seller’s Agent for payment, Seller may not demand payment from Buyer under any circumstances, other than duties payments for customs.
5.7.2 Finalizing all Shipment Adjustments
Freightos allows you to charge for any additional services detailed in the Transparent Pricing Policy (such as a discrepancy in the dimensions/weight measured by Seller after pickup relative to what was declared initially by the Buyer) and which were documented and reasonably incurred during the Shipment may be charged. Seller commits to update Freightos with all additional services within 10 Business Days after delivery (with the exception of Express shipments for which additional services may be added for 15 Business Days after delivery). After 10/15 Business Days after delivery, the shipment will be considered “closed” and the Buyer has 5 Business Days to submit any disputes. Should the buyer not dispute, he will be asked to pay any and all of the Additional Services added during the shipment. After a shipment is “closed” no changes to the shipment can be made by either party.
5.7.3 Abandoned Cargo
Should the consignee not make the necessary arrangements to pick-up the goods from the CFS/Warehouse/CY or cooperate in customs clearance or delivery efforts within 10 calendar days after port arrival, the shipment may be considered abandoned.
You must make commercially reasonable attempts to mitigate any damages and reduce costs associated with the cargo. The Freightos Payment Guarantee shall remain in place subject to your acting in a prudent manner.
5.7.4 Freightos Purchase Order
Once a shipment is “In transit”, Freightos will send the Seller a Purchase Order (PO) representing the sum owed the Seller as recorded on the Freightos Platform. Sellers are asked to immediately notify Freightos of any discrepancies from the Seller invoice so that a revised PO can be issued. 7 days after the shipment reaches “Delivered” status, a final PO will be sent to the Seller.
5.7.5 Invoice Required for Payment
A final invoice must be sent to email@example.com prior to the “invoice cut off” date for each payment cycle as detailed below. The “invoice cut off” date occurs a number of days prior to the payment and will be published together with a six (6) month payment schedule that is communicated by Freightos to Sellers.
The invoice must match the PO sent by Freightos, in terms of the description of each line item, the amounts per line item and the total amount. If there are discrepancies between the PO and the Invoice received, Freightos will not remit payment to the Seller.
Freightos will make payment for invoiced shipments that are delivered and have been marked with the status “delivered” on the Freightos Shipment page. Seller is responsible for ensuring that Freightos is informed of the delivery, for having proof of delivery and that the Shipment page status is marked as “delivered”.
5.7.6 Identifiers on Every Seller Invoice
Invoices submitted to Freightos must include the Freightos Shipment # and one of any of the following identifiers: for ocean shipments the House/Master Bill of Lading, for air shipments the House/Master AirWay Bill, and for Express the Tracking number.
5.7.7 Payment Currency
Rates may be submitted to Freightos in any currency, and will be converted to US$ at the time of quoting. The conversion rate will be the middle rate known at the time of the generation of the Quote. The US$ Quote will be the ultimate amount paid by Freightos to the Seller, irrespective of currency fluctuations between Quote and payment. Currently, Invoices from Seller must be denominated in US$ as will purchase orders and payments from Freightos. Other currencies may be offered in the future.
5.7.8 Net Payment to Sellers
Freightos Seller’s Fees are set forth here.
Payment will be made by Freightos to Seller, net of the Seller’s Fee and any applicable withholding tax. Invoices to Freightos must NOT have the Seller’s Fee deducted from them. Freightos will issue an invoice to the Seller for the Seller’s fee.
5.7.9 Two Payment Cycles per Month
Payments will be made twice a month (close to the beginning and close to the end of each month). A six (6) month payments schedule is published by Freightos for the exact dates on which payment will be made.
Payment will be issued to the bank account specified by the Seller.
5.7.10 Payment Report
Seller will receive a payment report for each shipment on that payment cycle, which records the total amount of the Seller Invoice, the total amount of the Freightos Invoice for the Seller’s Fee, and the net payment received for this shipment(s). The report will also specify which shipments were NOT paid either due to not receiving an invoice or the invoice not matching the Freightos PO.
6. Seller’s Marketplace Presence
6.1 Show Seller logo on Quotes
Freightos will use your logo when showing your Quote, on your Seller Profile Page and in other places for marketing purposes. You agree to such use of your logo and agree that your company name, logo(s) and Rates shared on the Freightos Marketplace can be used as part of Freightos’ marketing efforts to attract Buyers to the Freightos Marketplace in order to generate business for Sellers. Such marketing efforts may include email marketing, digital advertising, press mentions and more.
6.2 Seller Profile Page
Freightos creates a public “profile page” for Sellers to share basic information with Buyers about their organization, services offered and reviews. You should provide Freightos with accurate details and add any information that you would like Buyers to see however we are not obligated to publish all of the information. Freightos is not responsible for validating the content of the Seller profile page and you take all responsibility for the contents.
Freightos will publish Buyers’ reviews of your services. This is meant to give Buyers additional information when choosing a Quote and to give you the opportunity to differentiate based on good service. All reviews are solely the opinion and responsibility of the person posting the content and Freightos takes no responsibility and assumes no liability for reviews posted by Buyers.
Should Seller wish to contest a review Seller should send an email to firstname.lastname@example.org. These requests will be reviewed on a case by case basis however Freightos will only remove reviews if they are deemed malicious, obscene or libelous.
Freightos also reserves the right to publish and share metrics about Seller’s performance collected through use of the Marketplace, such as actual transit times, in the Reviews sections and/on Seller’s profile page.
Freightos invests significant efforts and resources into finding Buyers and Sellers. When we introduce a Buyer and a Seller, they must transact exclusively through Freightos for 12 months following the first transaction (with an exemption if the Seller had sold directly to the Buyer in the previous 6 months prior to their first transaction on the Freightos Marketplace, as evidenced by an actual invoice, or with respect to other services, e.g. warehousing, while those services are not offered on Freightos).
Any transactions done between a Buyer and Seller directly during the Non-circumvention period shall be deemed to have taken place on the Marketplace with respect to Seller Fees.
Please bring to our attention any attempts by a Buyer to approach you directly during the non-circumvention period and in such a case please direct the Buyer back to the Freightos Marketplace to Book the Order.
8. Communications with the Buyers
A central pillar of the Freightos Marketplace is transparency throughout the shipment lifecycle and providing a very high level of customer service to the Buyers. To that end, as a Seller on the Freightos Marketplace we provide you with a platform to update critical shipment milestone data online which is available to the Buyers. By keeping the platform up to date you ensure that the Buyer has the best experience and will always have access to the status of his shipments. The required milestones and SLA for your updating of each milestone can be found in Appendix B. Also, in any case you feel the need to communicate with Buyer about changes to the shipment or need for Buyer’s input, please reach out directly and in a timely manner.
There are two methods you may use to keep the milestones and communications up to date in the Freightos system:
- The prefered method is to set up automated updates from your TMS through CSV/EDI/API.
- By manually updating the Freightos Platform shipment pages.
While Freightos is not a party to the Order which is an agreement directly between Buyers and Sellers, we would like to help both sides have a positive and mutually beneficial experience when they meet on the Freightos Marketplace, and provide a framework for Sellers and Buyers to resolve disputes directly.
A Buyer may initiate a dispute by submitting a dispute form up to 5 Business Days following Delivery or 5 Business days after the Shipment is considered closed as per Section 5.7 above, whichever is the later. You will then have 5 Business Days to reach out to Buyer with email@example.com copied on all correspondence and attempt to reach a settlement. If a settlement is not reached within that timeframe, Freightos will adjudicate. Any charge exceeding 10,000 USD will need to be settled directly between you and the Buyer.
By agreeing to this SOP you agree that any and all disputes or claims that have arisen, or may arise, between you and Buyer that relate in any way to or arise out of services booked and provided through the Freightos Marketplace up to a sum of 10,000 USD shall be resolved exclusively through this clause, rather than in court or arbitration or directly between you and Buyer, and Freightos shall be the final arbiter of such disputes.
Should any legal actions be taken by you outside of this clause in respect of any shipment, whether through arbitration or court or directly between you and Buyer, the Freightos Payment Guarantee shall not cover such shipment.
10. Suspension of Account
The Freightos Marketplace is a platform where Buyers can feel secure in booking their shipments. If you fail to comply with the Freightos terms as detailed in the Freightos Master Services Agreement and this SOP or any of the policies mentioned here, or if Freightos has received legitimate complaints about your services from Buyers, Freightos reserves the right at its sole discretion to suspend your account or your participation in the Marketplace. You have the right to choose to leave the Marketplace at any time by deactivating your Tariffs and contacting us at firstname.lastname@example.org. In the event of removal by Freightos or by your choice, you will remain bound to provide any services for any Quotes saved or booked while you were still showing Quotes in the Marketplace, and any outstanding Quotes, Orders and Shipments will be handled in accordance with this SOP.
These Rules are important to all Sellers and Buyers. In order to maintain a fair and honest Marketplace for all, Freightos reserves the right, at its discretion which may differ from case to case depending on the circumstances, to enforce these Rules. Any user who doesn’t follow the Rules may be subject to a range of actions, including limiting their use of the Marketplace, suspension of their account, application of fees, and recovery of any expenses incurred in policy monitoring and enforcement.
Freightos LCL/FCL/Air transit time estimator model
|Leg||Stage||Comments||# of days||Sum of Days||When is the line calculated|
|Freightos approval||1||1||Calculated for ALL services|
|Pickup truck||Door–>CFS (Trucking)||Depends on distance||1-3 [+1 day per 800km]||6-13||This is calculated when it is from a door (D2P or D2D services)|
|Origin port||CFS work||Consolidation and documentation||2-3||Calculated for ALL services|
|Cut off||Moves to Carrier hands, Vessel loading
+3 days of sailing departures
|Main Leg||ETD||TT provided by Seller|
|Destination port||Port–>CFS||Taking the goods off the vessel||2-3||5-9|
|CFS work||Documentation work, destuffing||2-3|
|Delivery truck||CFS–>Door||Depends on distance||1-3 [+1 day per 800km]||This is calculated when it is to a door (P2D or D2D services)|
|Leg||Stage||Comments||# of days||Sum of Days||When is the line calculated|
|Freightos approval||1||Calculated for ALL services|
|Pickup truck||Door–>CY||Depends on distance||1-3 [+1 day per 800km]||4-8||This is calculated when it is from a door (D2P or D2D services)|
|Origin port||Cut off day||Moves to Carrier hands, Vessel loading
+2days as won’t get sailing every day
|3-5||Calculated for ALL services|
|Main Leg||ETD||TT provided by Seller|
|Destination port||Port–>CY||Taking the goods of the vessel, Documentation work||2-3||4-6|
|Delivery truck||CY–>Door||Depends on distance||2-3 [+1 day per 800km]||This is calculated when it is to a door (P2D or D2D services)|
|Leg||Stage||Comments||# of days||Sum of Days||When is the line calculated|
|Freightos approval||1||1||Calculated for ALL services|
|Pickup truck||Door–>Warehouse (near terminal)||Depends on distance||1-3 [+1 day per 800km]||2-5||This is calculated when it is from a door (D2P or D2D services)|
|Origin port||Warehouse work||Palletization, custom clearance and documentation [depends on airline regulations – special inspection for specific commodities]||1-2||Calculated for ALL services|
|Main Leg||Direct Flight||Direct flight from origin to destination||1-2||1-2|
|Indirect flight addition||More than one flight between origin and destination airports||2-5||2-5|
|Consol||Waits for the Forwarder consolidation||2-7||2-7|
|Destination port||Port–>Warehouse||Taking the goods of the plane, Documentation work, destuffing [differs between airport warehouse to company warehouse – which may add a day]||1-2||2-5|
|Delivery truck||Warehouse–>Door||Depends on distance||1-3 [+1 day per 800km]||This is calculated when it is to a door (P2D or D2D services)|
Milestones and SLA
|Planned pickup Date||1 Business Day After Order verified||1 Business Day After Order verified||1 Business Day After Order verified||1 Business Day After Order verified||1 Business Day After Order verified|
|Port ETD||2 Business Days After Order verified Day but not more than 4 days before planned pickup||2 Business Days After Order verified Day but not more than 7 days before planned pickup||2 Business Days After Order verified
but not more than 3 days before planned pickup
|Port ETA||2 Business Days After Order verified Day but not more than 4 days before planned pickup||2 Business Days After Order verified Day but not more than 7 days before planned pickup||2 Business Days After Order verified
but not more than 3 days before planned pickup
|Estimated Date Delivery||2 Business Days After Order verified Day but not more than 4 days before planned pickup||2 Business Days After Order verified Day but not more than 7 days before planned pickup||2 Business Days After Order verified
but not more than 3 days before planned pickup
|1 Business Day After Pickup||1 Business Day After Pickup|
|Actual Delivery Date||1 Business Day After Delivery||1 Business Day After Delivery||1 Business Day After Delivery||1 Business Day After Delivery||1 Business Day After Delivery|
|MBOL/MAWB/ Container numbers||1 Business day before ETD||1 Business day before ETD||2 Business Days After Order verified
but not more than 3 days before planned pickup
|Tracking Number||N/A||N/A||N/A||1 Business Day After Order verified||1 Business Day After Order verified|