Freightos.com Standard Operating Procedure (SOP) for Sellers

 

Last updated: 2020-12-03
Table of Contents

 

1. General

2. Welcome to Freightos

3. What Freightos provides Sellers

3.1 Seller Tiers

4. How does Freightos work

5. Freightos Seller Fees

5.1 Partnerships

6. Seller Onboarding

7. Seller Supplies Data to Freightos and Buyers

7.1. Provide Freightos with pricing

7.1.1. Alternative option for pick-up and delivery rates

7.1.2. Service levels and transit times

7.1.3. Rate Validity

7.1.4. General Rate Increases (GRI) for Ocean and Rate Increases for Air

7.1.5. Accessorial Charges

7.1.6. Delivery to Fulfillment Centers

7.1.7. Quote and Performance of Freight Services

7.1.8. Quote Currency

7.1.9. Quote Currency

7.1.9.1. Customs Brokerage

7.1.9.2. Insurance and cargo protection

7.2. Mechanisms for providing and updating rates on Freightos

7.3. Publishing new services

7.4. Rate updates processing time

7.5. Seller Provides Track & Trace Information

7.6. Seller Direct Communication to Buyers

7.6. Seller Direct Communication to Buyers

8. Freightos Attracts Buyers

8.1. Buyer Searches and Receives Quotes

8.2. Buyer Requests an Offline Bid (also “Custom Quote”)

8.3. Freightos Offers Promotions to Buyers

8.4. Seller Offers Promotions to Buyers

8.5. Buyer Books a Shipment

9. Shipment Execution

9.1. Initial Review

9.2. Pickup Coordination

9.3. Carrier Booking

9.4. Pickup Execution

9.5. Final Dimensions, Weights and Pallet Counts

9.6. Hold on Shipment Delivery Due to Buyer Debt

9.7. Delivery at Destination

9.8. Finalizing all Shipment Adjustments

9.9. Shipment Cancellation

9.9.1. Seller May Cancel a Shipment

9.9.2. Buyer May Cancel a Shipment

9.9.3. Freightos May Cancel a Shipment

9.9.4. Abandoned Cargo

10. Freightos Acts as a Collection Agent for Seller

10.1. Freightos Payment Guarantee for Sellers

10.2. Freightos Purchase Order

10.3. Invoice Required for Payment

10.4. Identifiers on Every Seller Invoice

10.5. Payment Currency

10.6. Net Payment to Sellers

10.7. Payment Schedule

10.8. Payment Report

11. Seller’s Freightos Presence

11.1. Show Seller Logo on Quotes

11.2. Seller Profile Page

11.3. Buyer Reviews

12. Non-circumvention

13. Disputes

14. Enforcement

15. Definitions

APPENDIX A – Milestones and SLAs

APPENDIX B – Customs Brokerage

APPENDIX C – Cargo Protection and Insurance

APPENDIX D – Freightos.com Sellers Terms and Conditions

 

1. General

This SOP details how logistics service providers (“Sellers”) display, sell and provide services through Freightos. These rules may change from time to time to reflect best business practices. Since all changes are binding and will govern your presence on Freightos, we recommend that you review this SOP every three months to stay up to date. Active Freightos Sellers may be notified in writing upon substantial changes. You can contact us with any questions and your feedback is welcome. The use of Freightos is also subject to the Freightos Master Services Agreement (“MSA”). All capitalized words in this SOP shall have the meaning found in this SOP [Section 15, Definitions] or in the Freightos Glossary.

 

2. Welcome to Freightos

Freightos provides 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.

Freightos enables freight forwarders, brokers, carriers, insurers, and other professional vendors of freight services (“Sellers”) to easily and instantly sell freight services or ancillary services to Buyers. Freightos regularly acquires new Buyers so that Sellers like you can offer them an excellent freight experience.

 

3. What Freightos Provides Sellers

Freightos offers a platform that allows Buyers and Sellers to find each other and generate instant quotes that 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. Freightos provides you, the Seller, with the following services:

  • Automation of generating price Quotes based on the rates you provide.
  • Advertising and promotion of your freight services across the Freightos platform and websites.
  • Supporting the establishment of a commercial contract between you and Buyers.
  • Providing a platform for communication 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.
  • 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 10.1 for more details.

Freightos does not act as a freight vendor, forwarder, insurer, broker, contracting agent, customs broker, or other representative, nor does Freightos act as a Buyer, Shipper, Consignee, Importer of Record or principal party of interest. Sellers are responsible for performing all obligations to provide freight services under any agreements with the Buyer.

Freightos’ team is here to help things go smoothly on a best efforts basis.

 

3.1. Seller Tiers

In an effort to provide the right service to our vendors, Freightos.com is assigning tiered statuses to our Sellers. These tiers will dictate to some degree the expectations we have of Sellers in each tier, as well as what kind of support each tier will receive from the Freightos.com team. Tiers will be assigned based on a number of factors.

 

4. How Does Freightos work

Freightos brings Buyers and Sellers of freight services together to allow them to enter into freight service agreements. 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 Sellers. When a Buyer purchases a Seller’s service by booking a Quote, this becomes a legal and binding agreement between the Buyer and the Seller.

Following receipt of notification of a valid Booking by Freightos, Seller shall commence execution of the Shipment as detailed in this SOP. Freightos is not a party to that agreement between Buyer and Seller 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 the performance of the service as contracted.

 

5. Freightos Seller Fees

Freightos charges Sellers the following fees for every Shipment booked through Freightos or as set out in Section 8.2:

Main Mode Seller’s Fee Custom Quote Only Sellers
FCL 2% 10%
LCL 4%
AIR 4%
LTL 10%
Drayage 2%
FTL 2%
Express/Courier 10%
Rail 5%

 
All transactions are subject to a minimum of 5 USD charge and all amounts from which these fee calculations are done are based on the total amounts invoiced by the Seller.

For a multi-leg Shipment, the fee percentage will be assessed based only on the main mode of the Shipment. For example: if a Shipment is picked up by a truck at a factory and is transferred by air freight overseas, the primary mode for the Seller’s Fee calculation will be AIR [4%] and not LTL [10%] (truck). For such a Shipment, the Seller’s Fee shall be 4% for the total amount invoiced by Sellers.

The Seller fee will be taken on the entire shipment Purchase Order amount. The Seller must consider this when adding additional charges at cost.

 

5.1. Partnerships

If as a Seller you want to offer quotes on partner sites, you will have to pay the partner specific additional Sellers fee. You will be sent a notification to opt-in or opt-out from your services being offered to these partner sites.

 

6. Seller Onboarding

Once a Seller completes and signs the Freightos Sellers Registration Agreement and is accepted into Freightos it undergoes an onboarding process.

  • Note for Online Seller Registration Agreement
    Sellers must have and maintain all necessary licenses in all applicable jurisdictions. Sellers must be in good financial standing and abide by all applicable laws and regulations. Sellers must also ensure that all of Seller’s subcontractors involved in providing the services have and maintain all necessary licenses and abide by applicable laws. Sellers shall be fully responsible for all actions taken by themselves and by agents and/or subcontractors on their behalf in fulfillment of their services through Freightos. Seller must also purchase and maintain all insurance policies relevant to the providing of freight services. Upon onboarding or at any time at Freightos request, Seller shall provide copies of any applicable license and insurance policy.
  • Seller Verification
    • Introduction of the Freightos Seller team and contact for Operations and Support.
    • Finance review and requirements. Sellers must provide:
      • Certificate of Incorporation / Full Legal Name and Address.
      • The main point of contact in your Finance Department.
      • Bank confirmation evidencing the bank account to which Freightos initiates payments to.
      • NVOCC licenses (whenever applicable).
      • Insurance policies.
      • Note: New documentation will be required if you wish to change your bank details.
    • Agreement on the scope of products and services that will be sold. What services will be available to you, will be provided in your designated Tier Guidebook.
    • Payment process review.
  • Training and Onboarding
    • Freightos SOP and Transparent Pricing Policy review.
    • Review on how to offer Quotes through the platform. When publishing Quotes, we will help you review before they are available to Buyers.
    • Seller Dashboard training and overview.
    • Guiding the Seller on the execution of their first Shipment.

 

7. Seller Supplies Data to Freightos and Buyers

7.1. Provide Freightos with pricing

Freightos Sellers participating under Tiers I & II will provide Freightos with rates that Sellers choose to make available to Buyers.

The rates that Sellers provide will be used by Freightos’ unique routing and pricing engine to generate a Quote based on the criteria entered by the Buyer. The rates must be both comprehensive and exact, as Sellers will be paid for the exact amount in the Quote. Should a Buyer book a Quote, it becomes a binding contract between the Buyer and the Seller, and becomes a Shipment.

Seller shall provide Freightos, in one of the ways set forth in Section 7.2 below, with rates which shall serve as the basis for generating a Quote. The Quote will include those charges as set out in the Transparent Pricing Policy. If a Buyer books a shipment from one of your published rates and one of the required charges has not been included, you will not be entitled for payment of the omitted charge. For example, if you provide a delivery rate and do not advise a lift-gate fee to apply, you may not add the charge afterwards.

 

7.1.1. Alternative Option for Pick-up and Delivery Rates

On Freightos, Buyers have the option to receive door-to-door Quotes in a fully automated way. This is achieved by using the unique Freightos routing engine to combine multiple legs of the shipment into a full, door-to-door route. For example, if a Seller provides 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 the Seller’s behalf.

In case a Seller does not have own pickup/delivery rates, a Seller may authorize Freightos to include 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. Freightos may facilitate a business introduction in the case this is fulfilled by a provider but, ultimately, the Seller remains responsible for honoring the price and performing the service.

 

7.1.2. Service Levels and Transit Times

When a Seller provides rates they must specify the service level and estimated port-to-port transit time expected for the service as follows:

  • Air freight: specify the carrier and transit time for each service and state the service level for each: “Direct”, “indirect” or “consol” (for direct, indirect flights and consolidation services respectively).
  • Ocean freight: specify the port-to-port transit time for the service(s) the Seller intends to provide. Routing details for each service must be provided (ie. transshipment port).
  • Courier/Express: specify a door-to-door transit time.

All transit times must be given in terms of calendar days, not Business Days. Seller must execute the shipment in accordance with the Quote and the service levels indicated.

Freightos also adds an estimated transit time range for the full route quoted. Freightos measures estimated transit times and expects Sellers to transport within these ranges. Freightos stores this information and may use it for modeling and rating purposes, and may publish this information.

 

7.1.3. Rate Validity

When you provide rates you must specify the validity range (“Rates Validity Period”). Please provide updated rates a few days before their expiration. If no expiration date is provided, the rates shall remain valid until we receive a specific notice that they have ceased to be valid.

Rate Validity implies that freight rates will not be adjusted if a shipment is gated in before the end of the validity period.

 

7.1.4. General Rate Increases (GRI) for Ocean and Rate Increases for Air

Ocean and Airfreight rates may change as a result of the cargo not meeting the Gate In Date. No GRI will apply if the cargo is Gated In to port/airport before the end of the Rate Validity period.

Actual Goods Ready Date Action
Before 4 days of Gate In Date for Ocean / 2 days for Air GRI will not apply.Sellers commit not to delay the movement of the goods and act in good faith to guarantee that the cargo meets the Gate In Date or Sail Date in time and form. For more specific information, please review our Transparent Pricing Policy.
Within 4 days of Gate In Date / 2 days for Air Buyer approval is required for the new GRI rate and the shipment. Buyers have 1 Business Day to reply. If there is no reply, Sellers can move, hold or cancel the Shipment. Please notify the Buyer and copy the Freightos messenger of the GRI rate changes. Buyer can cancel the shipment and will be responsible for costs incurred up to that point, if any.
After Gate In Date Buyer approval is required for the new GRI rate and the shipment. Buyers have 1 Business Day to reply. If there is no reply, Sellers can move, hold or cancel the Shipment. Please notify the Buyer and copy the Freightos messenger of the GRI rate changes. Buyer can cancel the shipment and will be responsible for costs incurred up to that point, if any.

If despite notifying the Buyer through Freightos messenger of the GRI or rate increase, the Buyer has not responded, Seller will use its best judgement in deciding to hold or move a Shipment considering both the cost of the adjustment and the cost of delays, and Buyer will pay the additional costs.

As per our Transparent Pricing Policy, the rate change should be representative of the shipping rates in line with the active rates on the platform at Gate In time. The rate change must be added to the Freightos Shipment page as soon as possible but no later than 5 days since vessel departure. If the Seller does not ensure the adjustment is reflected on the Freightos platform within that time, Freightos will not guarantee payment for the adjusted amount.

 

7.1.5. Accessorial Charges

Freightos supports automatic quoting for a number of accessorial charges. These will be added to the Quote as set forth in the Transparent Pricing Policy.

For other accessorial charges that may be added to a Shipment during execution, please provide pricing to be used as needed. If you provide the service but have not provided a price, then Freightos shall apply the market price to the Quote and you shall be paid the market price.

 

7.1.6. Delivery to Fulfillment Centers

Sellers are encouraged to provide services for delivery to Fulfilled by Amazon (FBA) warehouses and other fulfillment centers. Those facilities typically require: labelling, palletizing, consolidating shipments at destination, scheduling delivery to one or more warehouses, and similar services. Sellers interested in offering these services will provide Freightos with the required charges listed in our policy.

 

7.1.7. Quote and Performance of Freight Services

All Quotes on Freightos and all provision of Freight Services are governed by the Freightos Seller’s General Terms and Conditions that can be found in Appendix D and Seller is obligated to perform in accordance with and be governed by the Freightos Seller’s General Terms and Conditions.

And any shipment booked on Freightos and performed by Sellers is performed only in accordance with these Terms and Conditions.

 

7.1.8. Quote Currency

Rates may be submitted to Freightos in any currency, and will be converted to USD or to the Buyer’s currency at the time of quoting. For Custom Quotes, rates must be submitted in USD exclusively.

In the cases in which the rate conversion applies, 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, we encourage Sellers to send invoices denominated in US. If the Seller sends an invoice in different currency from the Quote currency, Freightos will apply as conversion rate the middle rate known on the day of the shipment booking.

 

7.1.9. Additional Services Offered to Buyer

 

7.1.9.1. Customs Brokerage

Buyers may request import customs brokerage services when booking. These services may be purchased directly through a third party Seller on Freightos or through Buyers’ selected Sellers on platform if they offer their own custom clearance services.

Seller’s obligations regarding customs brokerage services are set out in Appendix B.

If Buyer does not select the Customs Brokerage additional service then Buyer takes full responsibility for clearing customs.

Whichever modality Sellers operate, all Sellers must provide all information relevant in advance so that the appropriate party can proceed with the clearing of the goods including but not limited to ISF Filing. Any delays and/or fines due to lack of documentation shall be at Seller’s expense.

 

7.1.9.2. Insurance and Cargo Protection

Buyers may request insurance policies or services when booking. If requested Seller’s freight services will be paired with insurance provided by a Third Party on the search results. In some cases, Freightos may ask a Seller to provide their own insurance or cargo protection tariff.

Sellers providing their own insurance services must provide policies in a timely manner through the Freightos platform. For other Seller requirements when providing such services, please see Appendix C.

Should any claim be filed by a Buyer, whether through a direct Seller service or a Third Party, the Seller must take all necessary measures to assist them in filing and settling the claim in a timely manner and provide all necessary documentation and evidence if relevant.

 

7.2. Mechanisms for providing and updating rates on Freightos

Rates can be provided in one of several ways:

  • Manual Templates: You send us rates in your own Excel files in the template our Data team will provide. Freightos then performs the data upload on your behalf. This is currently offered at no charge for the first six months of selling on Freightos. Freightos may decide to charge for this service and will provide at least one month’s prior notice. This is currently an option for LTL and Express rates, as well as for surcharges for all modes. An online template will be provided for FCL, Air and LCL. You will be responsible to update your rates directly on Airtable once the setup is complete.
  • Electronic: Rates shared with Freightos via electronic integration (i.e. API). 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 Freightos.
  • Self Serve: Freightos provides online rate management tools and templates for Sellers to manage pricing directly.
  • Index-Based FCL Rates: You may choose to quote FCL based on the data that drives the Freightos Baltic Index (FBX) rather than providing your own rates. The data is FCL port-to-port ocean pricing aggregated anonymously from dozens of freight forwarding companies and logistics providers representing all major carriers on a host of international tradelanes and port pairings. The data used is the data available only from the day before. You will be given the opportunity to select your pricing profile from aggressive to conservative and will also be able to mark the rates up or down.

All rates provided are at the sole responsibility of Seller. Once a rate has been provided and published, Seller must respect such rates and perform the Shipment in accordance with the Quote.

 

7.3. Publishing new services

Sellers will be able to add additional routes and service levels to their existing services offered based on their Tier rating and the applicable Tier Guidebook.

Freightos.com will provide Sellers with sample quotes before publishing a new tariff. Once a Seller confirms the rates may be published, they are solely responsible for their pricing.

 

7.4. Data Updates Processing Time

All Sellers will have their data updates made in accordance with their applicable Tier Guidebook.

 

7.5. Seller Provides Track & Trace Information

A central pillar of Freightos is transparency and a high level of customer service throughout the shipment lifecycle. To that end, Freightos provides Sellers with a platform to update Buyers with critical shipment milestone data through both direct communication and an online shipment portal.

To ensure Buyer satisfaction, promptly communicate shipment milestones via API integration or manual updates on our platform. The required milestones and SLAs for timely lifecycle communication can be found in Appendix A.

Sellers must use the right method of updating shipment information according to their appropriate Tier Guidebook.

If Sellers would like to do a full API integration with Booking Notification, Tracking and Incoming Alerts from Sellers, using our OpenFreight standard, please be in touch.

 

7.6. Seller Direct Communication to Buyers

Sellers are responsible to provide shipment updates and communications to Buyers on a regular basis to ensure a high standard of customer service. All Seller-Buyer communications must be recorded on Freightos either through the platform messenger application or using the email functionality that allows Freightos to keep track of every exchange between Buyer and Seller. All interactions have to be properly documented properly for a review by Freightos as needed. Proper use of the messenger application will be measured as part of the Seller Score which measures the Seller’s success and standing on Freightos.com.

 

8. Freightos Attracts Buyers

In order to facilitate increased exposure to potential Buyers, Freightos may make the Sellers’ Quotes available within third-party websites or software that employs the Freightos API. In addition, Freightos may choose to provide specific Sellers with additional brand visibility by publicizing their names, logos, or reviews of their service. In some cases, Seller names, logos and company profile description may also be used on either Freightos or on industry freight publication for PR purposes.

 

8.1. Buyer Searches and Receives Quotes

When a Buyer searches for a Quote he will be entering basic parameters that will allow him to get relevant results. Freightos will return a list of Quotes from all Sellers matching these specifications, along with an estimated transit time window. Freightos’ algorithm may hide, prioritize and sort Quotes based on: competitiveness, services, Seller rating and performance, technical or other considerations. Buyers will instantly see Quotes covering different modes of transportation as well as the detailed price breakdown of each Quote and leg component.

 

8.2. Buyer Requests an Offline Bid (also “Custom Quote”)

If a Buyer does not find a Quote that meets the search details, he may request an Offline Quote. Freightos will assign that request to relevant Sellers, based on the requested scope. If Freightos has determined that a Seller provides services meeting the search details, the Seller will be notified by Freightos of a new bid request that awaits action. The system also allows Sellers to sign up for specific lanes and products to receive all bids automatically.

Once Sellers receive a notification of a new bid, they may choose to either accept or reject the bid. In case Sellers choose to reject then they will be asked to provide the reason for rejection. The offer should be submitted/rejected within 2 Business Days from the time of notification. A longer time period might result in the loss of business or partnership with offline quotes. Freightos cannot guarantee that any offer submitted will be accepted by the Buyer.

The submitted Quote must be both comprehensive and exact as the Sellers will only be paid for the exact amount in the Quote. If any changes need to be made, a Seller can contact quotes@freightos.com who will assist to amend the bid. Submitted Quotes will be binding and Freightos will be entitled to publish and share the Quote with that Buyer and once shared the Quote will be deemed public information.

Bids may be submitted by multiple forwarders, and there is no guarantee that yours or any quote will be booked. If a Buyer accepts and books the Quote, Freightos will notify you by email of the Booking at which time the Shipment will be visible to you. If 2 weeks have gone by with no booking placed, you will be notified by Freightos that we automatically closed the bid.

Offline Quotes are covered under the same terms and conditions as other Quotes covered in this SOP and the MSA. Should you have any questions please raise them immediately with ship@freightos.com

 

8.3. Freightos Offers Promotions to Buyers

In order to incentivize Buyers to use the platform, Freightos may offer site promotions from time to time (“Promotions”). Since any agreements for services are directly between Buyers and Sellers, the Promotion is not part of the freight service or contract and is a site Promotion given directly by Freightos to a Buyer. In such case, Freightos will fully discharge the amounts stipulated in the Promotions owed by a Buyer to the Seller. Any payments from Freightos on the basis of such Promotion Offer to the Seller will be made voluntarily and at no point in time will the Seller be entitled to claim any payment regarding amounts owed by a Buyer from Freightos based on such Promotions. The Seller confirms that any payments made by Freightos on the basis of a Promotion to the Seller will be accepted as payment on the Buyer’s payment obligation.

 

8.4. Seller Offers Promotions to Buyers

Sellers are able to offer promotions to Buyers on our platform. These promotions, their financial consequences and its legality vis-a-vis the regulator will be the responsibility of the Seller. The promotions will be visible on the results tile. In the checkout page, there will be a section for Promotions applied which will be separate of the Sellers’ Quote and Customs charges.

Sellers will be able to set up their own freight promotions based on the following criteria:

  • Partner sites where the promotion is applied
    Sellers can choose which channels to which they are providing services to, their promotions will show: all channels, Freightos.com, Alibaba Freight or any other partner site available.
  • Start/End date
    Dates are calculated based on UTC, so all promotions expire at midnight UTC of the end date. The start and end dates are included in the validity, i.e. from the beginning of the start date to the end of the end date. From half an hour before the promotion expires, the promotion will no longer appear to buyers on the tile. Buyers have 30 minutes to checkout once a tile is selected, so users who select a tile at 11:30pm UTC will have to checkout within that half an hour in order to receive the promotion.
  • Currency and Price Break
    Promotions can be set up and applied for quotes that range different amounts: 100, 500, 1000, 1500, 2000 in different currencies, such as USD, EUR or GBP. The break range will be equal to or greater than the price break selected (ie. if the price of the Quote is 100-499, it will belong to the 100 break). The currency will depend on the resulting converted currency for the Buyer, ie. if the Buyer sees a converted value of 550 USD then the right break will apply, independently of the currency in which the rates were loaded.
  • Main Mode
    If the Seller does not add specific modes, the promotion will apply to all modes.
  • Origin and Destination countries
    Sellers can select a single origin country and multiple ports/airports of origin. The promotion will apply to shipments where the main leg includes this/these port(s). If the Seller does not add any specific origins or destinations then the promotion will apply to all origins or destinations.
  • Type of Shipment
    Door > Door; Door > Port; Port > Door; Port > Port. If no details are provided, the promotion will match for all types of shipments.

Buyers will see all the relevant promotions that fit the criteria as defined by the Sellers. If there are two matches for a promotion, Buyers will see the best price (highest promotion with lowest Quote).

When Sellers perform searches, they will see only their own promotions. The “Cheapest” and “Best Value” sorting of the tiles will be based on the updated value of the quote, with the promotion value included. The amount promoted will also appear in the shipment console, under the shipment charges tab. The promotion ID (unique to each promotion set up by the Seller) will be displayed under the subtotal.

Sellers will be able to add, edit and remove existing promotions and will also be able to turn it on and off at any moment. Sellers are solely responsible for the promotions being applied and Freightos will not take any liability.

 

8.5. Buyer Books a Shipment

Once a Buyer has selected and booked a Quote, this creates a Shipment. The Booking creates a binding contract between the Buyer and Seller, whereby the Buyer agrees to provide payment to the Seller via Freightos in exchange for the freight services that the Seller agrees to provide to the Buyer at the stated cost. Once a Quote is offered by the Seller and booked by the Buyer, the price in the Quote is absolutely binding and cannot be changed.

Freightos will notify the Seller by email of the Booking at which time the Shipment will be visible to the Seller. Freightos and Buyer shall not be responsible for any costs incurred prior to notification of the Booking by Freightos.

 

9. Shipment Execution

 

9.1. Initial Review

For every new Booking, Freightos will perform a non-binding preliminary check that the basic details have been provided by the Buyer. However, Seller must check that all of the documentation necessary for execution of the Shipment is in place. Failure to do so will nullify the Freightos Payment Guarantee. This guarantee will also be nullified if the Seller is moving the cargo before the actual verification takes place.

Freightos is not party to any Booking or Shipment and is not responsible for performing know-your-customer (KYC) or due diligence 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.

Before a shipment is verified and submitted to the Seller for shipment execution, Freightos checks all Buyers against the OFAC (Office of Foreign Assets Control) list. Buyers’ information is checked as part of the post booking checklist feature of Freightos.com where Buyer details (name, company name) as well as the consignor and consignee details (name, address) are checked against the OFAC list to ensure that no sanctioned individual places a shipment with our Sellers. Every Seller must undergo its own necessary legal review including OFAC checks.

After Freightos has done this preliminary review the system will update the shipment to “Booking sent to logistics provider”. This will trigger an API and email alert to the Seller informing of the shipment details and asking to contact the consignor to schedule pick-up. This communication and the shipment page shall serve as the main reference for the Booking details.

 

9.2. 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 Booking 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 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. Exceptions should be backed up by written proof from Consignor or Buyer.

 

9.3. 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 (Estimated Time of Departure) and ETA (Estimated Time of Arrival), MBOL/HAWB number (House and Master) and, where relevant, container number and carrier name. For Express shipments a Tracking number should be provided as well. For LTL a HBOL document should be provided.

Once this information is provided (information needed is based on the mode as mentioned in the beginning of this paragraph) the shipment status will change automatically to “Transport Booked”.

 

9.4. 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 “Goods Received”.

If a Seller has made touch with the Consignor and the Consignor has not been able to make the goods available for the Seller to arrange pickup, the Seller must indicate that the Shipment is “On Hold” and change the status accordingly on the shipment console. The Seller will also indicate until which date this Shipment is “On Hold”.

If a Buyer has agreed to ship on an FOB basis from his supplier, then Buyer is responsible for ensuring that Buyer’s supplier executes his duties regarding the Shipment. Should the Seller agree directly with Buyer and Buyer’s supplier to execute any other part of a Shipment, the Freightos Payment Guarantee shall not cover this and the Seller shall be responsible for all invoicing and collection between the Seller and the Buyer’s supplier. The Seller may not hold up the Shipment or delay execution due to any non-payment by Buyer’s supplier or otherwise and the Seller 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.

For ocean and air shipments (not Express or LTL). The shipment status will be changed to “Departed from port” and “Arrived at port” once the actual date is filled in the transit information fields on the shipment console.

 

9.5. Final Dimensions, Weights and Pallet Counts

Once the goods are in possession of the Seller or their agent, Seller should verify the load details and communicate any updates to the Buyer and reflect any financial changes on Freightos accordingly. 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 Dispute Policy (Section 13). You are entitled to hold the continuation of the Shipment pending a reply from the Buyer. Seller must document and be able to provide proof of the adjustment in order to charge any additional costs.

Adjustments must be added to the system immediately as they are known and these will also be subject to Seller Fees (as detailed above in Section 5). Any adjustments made after delivery of the shipment and after the timeframes detailed in Section 9.8 will not be charged or paid.

 

9.6. 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 without Freightos prior written approval, which shall not be unreasonably withheld. Also, Seller may not hold a shipment for on-platform charges that are in dispute. Should Seller hold a shipment without receiving prior written approval from Freightos, Seller shall be solely liable for all costs incurred and the Freightos Payment Guarantee shall not be valid. Seller may also not hold up or refrain from releasing any documentation which may delay delivery of the shipment without the prior written approval of Freightos.

 

9.7. Delivery at Destination

Seller is fully liable for delivery of the Shipment, whole and undamaged, to the correct address and make best efforts to deliver in the time frame indicated during submission of the tariff. This liability continues 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.

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.

Seller must provide:

  • Proof of delivery to Buyer and Freightos in accordance with best industry standards and including all relevant information. Freightos will withhold payment until receiving a copy of the proof of delivery.
  • All necessary documents (Bill of Lading, Arrival Notice and any other) to Buyer’s designated Customs Broker to perform customs clearance. In the case the Seller is directly handling Customs Brokerage services he should provide these documents to his designated broker using best practices to ensure that the goods are cleared on time and meet all requirements.

If Buyer contests full receipt of goods or claims that goods received were damaged, Seller shall provide the Buyer with all the required details and documentation so that the Buyer may follow up directly with his Insurance Agent to file a claim. Damage claims are separate from the Dispute Policy.

 

9.8. Finalizing all Shipment Adjustments

Buyers may be charged for any additional costs detailed in the Transparent Pricing Policy. At the same time, they must be notified and reimbursed for any quote reductions. For example, a Seller may reflect a financial adjustment produced by a discrepancy between the dimensions and weight reported by Buyer and the actual documented dimension/weight of the shipment.

The Seller commits to update Freightos with all additional services that were provided within 14 calendar days after delivery (with the exception of Express shipments for which additional services may be added for 20 calendar days after delivery). After 14/20 calendar days after delivery, the shipment will be considered “closed”. 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 the Seller. To guarantee a top class customer service, these charges must be ready as soon as possible.

 

9.9. Shipment Cancellation

9.9.1. Seller May Cancel a Shipment

Sellers may only cancel a Shipment under the following circumstances:

  • Sellers cannot physically execute the Shipment because of Force Majeure. Please note that any change in market conditions or carrier availability is not a valid reason for Shipment cancellation.
  • Should there be a material discrepancy between the details entered by Buyer and the actual description of the goods or pickup times or other substantial discrepancies, you shall be entitled to cancel the Shipment and may charge Buyer for any documented and commercially reasonable costs incurred.
  • Buyer fails to meet Seller’s internal legal compliance requirements, as documented for their internal reference by Seller. The Seller may also refuse to service a repeat Buyer who have escalated issues with previous shipments.
  • Buyer is unresponsive for 14 calendar days after the shipment is verified and does not help facilitate shipment release to the Seller.

It is not acceptable to implement an automatic standard cancellation charge. All cancellation costs must be in line with actual fees incurred by the Seller, and only following pickup. Proof of charges must be given.

Any cancellation by Seller or failure to execute the Shipment other than for these reasons shall be a breach of contract between Seller and Buyer. In such a case, the Seller may be liable to the Buyer for any losses incurred, such as alternate transportation costs, excluding consequential damages to any party. In such cases and in any case of lack of execution of a Shipment, Buyer shall be entitled to transfer the Shipment to a different Seller in addition to seeking remedies for the breach.

In order to maintain a fair and honest platform, Freightos retains the right to remove Sellers or take any other necessary measures against Sellers that, in Freightos sole discretion, abuse this Cancellation Policy.

To cancel a shipment please:

  • Send an email to ship@freightos.com
  • Include the shipment number and the word “Cancellation” in the subject line.
  • Please specify which of the three acceptable reasons is the cause of cancellation, or whether the cancellation request is coming from the Buyer, and include a written explanation and details, including whether there are any charges that have to be paid and supporting documentation.

When a cancellation takes place in accordance with this SOP, Freightos will cancel the Shipment in all necessary systems and notify the Seller and Buyer of the cancellation.

 

9.9.2. Buyer May Cancel a Shipment

Buyer’s cancellation may occur if Seller has not fulfilled all of Seller’s obligations under the SOP and MSA and other Freightos Policies. In this case, Buyer shall have the right to transfer the Shipment to another Seller and Seller shall have no claims arising from this cancelled Shipment.

Should the Buyer cancel a Shipment after the Seller has already incurred costs, the Seller shall be entitled to payment for commercially reasonable and documented costs. These costs shall be subject to Freightos Seller’s Fees (Section 5).

 

9.9.3. Freightos May Cancel a Shipment

Freightos may cancel any Shipment following its initial review (Section 9.1) if it believes it not to be viable.

Freightos may notify the parties that the Booking has been cancelled at any time due to non-compliance with these SOP rules.

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.

 

9.9.4. Abandoned Cargo

Seller shall be entitled to treat a Shipment as Abandoned Cargo under the following circumstances, provided there are no open disputes on the Shipment:

  • In a to-port shipment, the consignee does not make the necessary arrangements to pick-up the goods from the CFS/Warehouse/CY within 10 calendar days (or extended free time where relevant).
  • In a to-door shipment, the consignee does not cooperate in customs clearance or prevents delivery efforts within 10 calendar days (or extended free time where relevant) after release notice.

Seller must notify Buyer in writing that the Shipment delivery cannot continue due to Buyer’s failure to make necessary arrangements or cooperate in customs clearance, and must make all reasonable attempts to mitigate damages and reduce associated costs, prior to treating a Shipment as Abandoned Cargo. If Buyer does not rectify the failure within 6 calendar days from receiving such notices, Seller shall be entitled to treat the Shipment as Abandoned Cargo. Seller must have proof that such notification was given.

Abandoning the Shipment entails ceasing the handling of the shipment if a pending payment such as for duties, taxes, or warehousing is not received. Seller shall abide with local laws and regulations once a Shipment is abandoned in accordance with this section.

 

10. Freightos Acts as a Collection Agent for Seller

 

10.1. Freightos Payment Guarantee for Sellers

Freightos Sellers should be able to confidently accept Bookings from Buyers on Freightos. Freightos guarantees payment in full for the amount in Seller’s Quote plus/minus any additional services as detailed in the Transparent Pricing Policy, all to the extent permitted by law. These charges should be added to the Freightos platform and it is the Sellers’ responsibility to update the system with any Buyer’s charge.

The Payment Guarantee will not apply if there is any dispute submitted by the Buyer against the Seller regarding the Booking, the delivery or services performed until such dispute is resolved, or if Seller has acted not in accordance with the MSA, this SOP or with any of Freightos policies.

Seller may only initiate collection directly from the Buyer for those costs set out in the Transparent Pricing Policy. Any other attempt to initiate collection directly from a Buyer will void the Payment Guarantee and be deemed cause to remove the Seller from Freightos.

Due to the current situation with the COVID-19 pandemic, the Payment Guarantee will not cover additional Warehousing costs, Storage and Demurrage additional charges. However, other than that Freightos will act in accordance with the SOP including collection efforts on the Seller’s behalf. Should the collection efforts not be successful, Freightos and Seller will work together to find a solution.

Please use best efforts to avoid Warehousing, Storage and Demurrage charges while operating shipments. Make all efforts to mitigate any chances of no payment, including considering not releasing the cargo taking into account that the Payment Guarantee is not in effect for those items.

A chargeback automatically qualifies as a dispute and as such we will consider the shipment “In Dispute”. According to our Dispute Policy, we will withhold the amount from the Seller Statement of Account until the dispute is decided.

For Germany and other countries in the European Union where providing a guarantee is regulated and due to applicable law Freightos cannot provide this payment guarantee, the following process shall apply instead of the above:

  • Freightos will collect with Credit Card. Payment is immediate and the funds will be located at a financial institution and then released to the Seller as per the process laid out in this SOP.

    With regards to additional charges, these are usually collected automatically from the Buyer’s credit card.

    In the cases in which Buyers did not approve direct collection from our system, Freightos will prompt Buyers to pay these charges when they occur. If they have not done so, Freightos will send reminders after the shipment has been delivered with no disputes arising out of it. If they are not answered, Freightos will send a legal letter which most Buyers heed for small amounts.

    Should this not bring results, for disputed amounts over 500 USD, Freightos will send the debt to a collection agent. Any money collected by the agent, less the agent’s fees, shall be sent to the Seller.

  • Should Freightos’ efforts detailed above not be successful in achieving payment, Seller shall be entitled to sue Buyer directly.
  • The option to provide Buyers with a Credit option is not yet available outside of the US, Canada and the UK.

 

10.2. Freightos Purchase Order

Once a shipment is “In Transit”, Freightos will send the Seller a Purchase Order (PO) representing the total owed to the Seller as recorded on Freightos. A final PO reflecting any cost adjustments that occurred during the shipment execution will be sent to the Seller 14 calendar days after the shipment reaches “Delivered” status.

 

10.3. Invoice Required for Payment

Invoices should be sent to Freightos after a shipment has been delivered, and proof of delivery has been uploaded to the Freightos platform. A single invoice including all charge adjustments applied during the shipment must be issued.

The recipient of the invoices should be “Freightos for the account of shipment buyer”. This can be an exact fixed text and does not need to be changed for every Buyer being referred through the platform.

Invoices must be sent to mp-invoices@freightos.com prior to the “invoice cut-off” date for each payment cycle as detailed below in Section 10.7. 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. Unless, the shipment is still in dispute with the Buyer and/or 7 calendar days have not passed since the last charge that was added.

Seller is responsible for ensuring that Freightos is informed of the delivery, for providing proof of delivery and that the Shipment page status is marked as “Delivered”. Failure to provide valid proof of delivery may delay payment and may void the Payment Guarantee.

 

10.4. Identifiers on Every Seller Invoice

Invoices submitted to Freightos must include the Freightos Shipment # and one of any of the following identifiers: for ocean and LTL shipments the House/Master Bill of Lading, for air shipments the House/Master AirWay Bill, and for Express the Tracking number.

 

10.5. Payment Currency

See Section 7.1.8 to review the Freightos exchange rate conversion policy. The USD 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 USD as will purchase orders and payments from Freightos. Other currencies may be offered in the future.

 

10.6. Net Payment to Sellers

Freightos Seller’s Fees are set above in Section 5.

Payment will be made to the Seller by Freightos, net of the Seller’s Fee, Partnership Fees and any applicable withholding tax. Invoices to Freightos must not have the Seller’s Fee and/or the Partnership Fees deducted from them. Freightos will issue an invoice to the Seller for the Seller’s fee.

If a Seller wishes to change their payment details, a new bank confirmation evidencing ownership of that bank account will be required.

 

10.7. Payment Schedule

A detailed payment schedule can be found here. Payment will be issued to the bank account specified by the Seller.

 

10.8. Payment Report

Sellers will receive a payment report for each shipment on that payment cycle. This report 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).

 

11. Seller’s Freightos Presence

 

11.1. Show Seller logo on Quotes

Freightos will use the Seller’s logo when showing its Quotes, on the Seller Profile Page, and in other places for marketing purposes to attract Buyers in order to generate business for Sellers. Sellers agree to such use of their logo and agree that the company name, logo(s) and rates shared on Freightos can be used by Freightos. Marketing efforts may include email marketing, digital advertising, press mentions and more.

 

11.2. Seller Profile Page

Freightos creates a page for Sellers to share basic information with Buyers about their organization, services offered and reviews. Freightos is not obligated to publish all of the provided information nor is Freightos responsible for validating the content of the Seller profile page. Sellers assume all responsibility for the content published.

 

11.3. Buyer Reviews

Freightos will publish Buyers’ reviews of the Seller’s services. This gives Buyers additional information when choosing a Quote in order to help select a Seller that provides 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. Buyers may not leave multiple reviews for the same shipment.

Freightos will only remove reviews if they are deemed malicious, obscene or libelous. Sellers may reach out to Freightos if they receive such a review which has not been deleted. Freightos will only change reviews upon receiving an email request from the Buyer.

In certain conditions, if the Buyer perception of the service is not aligned with the realities of freight, Sellers may send us a comment to display on the review. Those cases will be approved case by case.

Freightos also reserves the right to publish and share metrics about Seller’s performance collected through the use of Freightos, such as response times or on-time deliveries. These may be published in the Reviews sections and/on Seller’s profile page or elsewhere.

 

12. Non-circumvention

Freightos invests significant efforts and resources into finding Buyers and Sellers. When Freightos introduces a Buyer and a Seller, they must transact exclusively through Freightos for 24 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 Freightos, 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 this non-circumvention period shall be deemed to have taken place through Freightos with respect to Seller Fees. Any Buyer that approaches a Seller during the non-circumvention period should be redirected back to Freightos to place the booking.

This section overrides the MSA.

 

13. Disputes

All disputes between Buyer and Seller will be covered by the Dispute Policy. You must act in accordance with the Dispute Policy. Non compliance with this policy is cause for termination.

 

14. Enforcement

These rules are important to all Sellers and Buyers in order to provide an optimal international freight experience on Freightos. To ensure this, Freightos reserves the right, at its discretion which may differ from case to case depending on the circumstances, to enforce these rules. Users who do not adhere to these rules may be subject to a range of actions, including limiting their use of Freightos, suspension of their account, application of fees, and recovery of any expenses incurred in policy monitoring and enforcement.

If a Seller fails to comply with the Freightos terms as detailed in the Freightos Master Services Agreement, this SOP, or any of the policies mentioned here, or if Freightos has received legitimate complaints about the Seller’s services from Buyers, Freightos reserves the right at its sole discretion to suspend the Sellers account or their participation on Freightos. Sellers may choose to leave Freightos at any time by deactivating their Tariffs and contacting ship@freightos.com. It may take up to 5 Business Days to perform a complete deactivation. In the event of removal by Freightos or by the Seller’s choice, they will remain bound to provide any services for any Quotes booked prior to their tariff’s removal and service any outstanding Shipments in accordance with this SOP.

Freightos values the privacy of all Buyers and Sellers, as well as the confidentiality of their data. Should any Seller share any of a Buyer’s data or any unauthorized information, this is cause for immediate termination of the Seller’s account.

 

15. Definitions

The Capitalized Terms used in this SOP shall be defined as follows:

Abandoned Cargo: Cargo which the consignee has not made the necessary arrangements to pick-up from the CFS/Warehouse/CY, or has not cooperated in customs clearance, or has prevented delivery efforts within 10 calendar days (or extended free time if available) after release notice and barring any dispute with Seller.

Booking: The act of accepting a Quote which establishes a contract with your Seller for the freight services covered by that Quote.

Buyer: An entity that books freight services through Freightos.

Custom Quote: A tailored price offering of a Seller to match your chosen shipping criteria and stored in your Freightos account.

Freight Services: Any service ordered from a Seller on Freightos including but not limited to freight, Insurance, Customs Brokerage, etc.

Gate In Date: The last date by which cargo must be received by the Carrier in order for the quoted rate to remain valid.

Goods Ready Date: The day the cargo is available at the factory or warehouse of supplier or other named location (such as Container Yard or airport terminal).

KYC: “Know your customer”. Internal Seller criteria necessary for accepting a booking.

Offline Quote: See Custom Quote.

Payment Guarantee: The guarantee given by Freightos to cover the cost of any booking and additional charges detailed in the SOP in the event that Buyer fails to make payment, all in accordance with the provisions of the SOP.

Quotes: An automated price offering of a Seller generated by Freightos software to match your chosen shipping criteria.

Rates Validity Period: The range of dates during which the rates remain valid.

Seller: An entity that sells and provides freight services through Freightos.

Sellers Quotes: A Quote from a Freightos Seller.

 

APPENDIX A

 

Milestones and SLA

 

Information Updated in Business Days… FCL LCL AIR Express LTL
Estimated Dates Estimated dates must be kept up-to-date as a shipment progresses
Planned Pickup 1 day after booking verified. Not required if the goods ready date on platform is 3 days or more in the future
Port Estimated Time of Departure (ETD) 1 day before planned pickup N/A
Port Estimated Time of Arrival (ETA) 1 day before planned pickup N/A
Estimated Date of Delivery Same day as Port Actual Time of Departure (ATD) Same day as Actual Pickup
Actual Dates All actual dates must be entered within 1 business day of planned/estimated dates
Actual Pickup Date 1 day after planned pickup
Port Actual Time of Departure (ATD) 1 day after ETD 1 day after ETD N/A N/A
Port Actual Time of Arrival (ATA) 1 day after ETA 1 day after ETA N/A N/A
Actual Date of Delivery 1 day after estimated date of delivery
Tracking Information
MBOL / MAWB / Container numbers 1 day before ETD 1 day before planned pickup N/A N/A
Tracking Number / HBOL N/A 1 day before planned pickup

 

APPENDIX B

Customs Brokerage

Sellers which offer customs brokerage for import and export activities must also include all fees related to 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 and the 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 shall be responsible to ensure and monitor performance by Seller’s customs brokerage agent.

Seller must provide its Power of Attorney (POA) form to the Buyer and 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 is responsible for collection of duties from the Buyer, including notifying the relevant parties. The Freightos Payment Guarantee does not cover payment of duties.

U.S. Shipments

Seller must provide a copy of the customs bond purchased as part of the shipment to the Buyer.

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.

For 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.

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. In the case Seller is providing customs, the following standardized services must be provided as well:

Optional service for U.S. importing Current Price
Single Entry Bond (U.S. Customs & Border Protection) The greater of 50 USD or 0.5% of the total entered value of the goods*
Continuous Bond (annual, U.S. CBP) 500 USD
Importer Security Filing Bond (= ISF Bond, U.S. CBP) 75 USD
Importer Security Filing (“10+2” service) 50 USD

* Note: If any of the goods are hazardous, or are subject to a Partner Government Agency approval (FDA, EPA, FCC, USDA, TBB…), or fall into other specific subcategories, these charges may change.

APPENDIX C

Cargo Protection and Insurance

Sellers can provide general cargo insurance services that can be included at Buyer’s request. Pricing tariffs and minimums must be provided as part of the onboarding process and will then be added, as required, as part of Seller Quotes.

A Seller-provided Insurance or cargo protection tariff includes:

  • Premium calculation, e.g., Insurance premium (price) as % of value of goods.
  • Minimum insurance premium (price).
  • Maximum deductible of USD 500.

Should Buyer choose to purchase insurance or a cargo protection alternative from Seller, Seller shall be fully responsible in helping Buyer settle all insurance claims. Seller is required to upload individual insurance documents to Freightos and make them available to Buyer and to fulfill all of the insurers’ or protection program 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 Buyer and the insuring party, whether the Seller or a Third Party.

 

APPENDIX D – Freightos.com Sellers Terms and Conditions

1. General

These are the Terms and Conditions that form the contract between Buyers that have booked Freight Forwarding Services from Sellers on Freightos or through Freightos partners, and shall govern all Shipments booked through Freightos.

Given the dynamic nature of the freight business and industry, this Agreement may be modified in the future. The version of this document published on www.freightos.com on the date of booking the Freight Forwarding Services shall be the version covering that Shipment, and so if you Buy or Sell on Freightos please make a note to check this document each month.

Freightos provides a platform where Buyers can search for Freight Services, Sellers can Quote for Freight Services (manually or by automatic calculation) Buyer and Seller can communicate and contract with each other via a Booking, and can collaborate to manage a Shipment. In all cases Freightos is providing a platform only and is in no way a party to the contract for the Freight Services, and Freightos does not buy or sell or provide Freight Services and is not a party to these Freightos.com Sellers Terms and Conditions. In terms of their respective relationships with Freightos, Sellers are bound by the Freightos Standard Operating Procedure and the Buyers are bound by the Terms and Conditions for Freightos Buyers. Given that Buyer and Seller have chosen to transact on Freightos, they may have specific obligations to use Freightos as the platform on which they communicate and collaborate.

These Freightos.com Sellers Terms and Conditions will govern those shipments that were chosen after the Buyer provided accurate input in the Freightos search and chose a Quote that was provided by a Freightos Seller. The Buyer and Seller are respectively responsible for the data and criteria that was used to search for and provide a Quote which is the basis for the transaction between them, and Freightos responsibility is limited to transmitting Buyers and Sellers data and the Quote.

 

2. Definitions

Abandoned Cargo: Cargo which the Buyer or Consignee has not made the necessary arrangements to pick-up the Goods from the Warehouse or destination point or has not cooperated in customs clearance, or has prevented delivery efforts within 10 calendar days (or extended free time if available) after release notice and barring any dispute with Seller.

Booking: The act of a Buyer accepting a Quote which establishes a contract with a Seller for the Freight Services offered in that Quote.

Buyers: Freightos users that book Shipments on Freightos.

Force Majeure Event: As defined in Section 6 below.

Freight Forwarding Services: Services of any kind relating to the carriage, consolidation, storage, handling, packing, or distribution of Buyer’s goods (“the Shipment”) as well as ancillary and advisory services in connection with the Buyer’s Shipment which may include customs brokerage and related matters, declaring the Buyer’s Shipment for official purposes, procuring, insurance of and procuring documents related to the Buyer’s Shipment.

Freightos: Freightos Limited of Hong Kong and/or the Freightos platform which can be accessed at ship.freightos.com and partner sites including via API.

Goods: The cargo booked for shipment via Freightos which is limited to allowed goods listed here.

Mandatory Law: Any applicable laws, statutes, orders, rules and regulations of any government or authority of any tier having jurisdiction over the Services or these Terms and Conditions the provisions of which cannot be departed from by to the discretion of the Buyer, the Seller or Freightos

Seller(s): The logistics provider(s) offering Freight Forwarding Services on Freightos whom Buyers have selected to execute their Booked Shipment.

Shipment: The particular Freight Service for moving a specific consignment of Goods from an origin(s) to a destination(s) that the Buyer has Booked on Freightos.

 

3. Duty of Care and Liability

The Seller will execute the Shipment and provide the Freight Forwarding Services with all due care, skill, prudence, and diligence and implementing the best practices accepted in the freight forwarding industry. The Seller shall apply industry best practices while executing a Shipment and performing the Freight Forwarding Services and shall always act in a commercially reasonable manner. Seller’s staff and subcontractors will have suitable qualifications, experience and training. Seller shall comply with all applicable laws and regulations at all points along the route.
The Seller is liable if it fails to exercise due diligence and take reasonable measures in the performance of the Freight Forwarding Services, in which case Seller, subject to Section 6, shall compensate the Customer for loss of or damage to the Goods as well as for direct loss resulting from breach of Seller’s duty of care.
It is Buyer’s responsibility to provide Seller in an accurate and timely manner with all information and documentation necessary for the execution of the Shipment and to respond in a timely manner to any further requests for information or documentation from the Seller, including declaring any device or material that may be considered dangerous goods on the relevant mode of carriage.
Upon Booking a Shipment for a Quote based on the data and criteria entered by Buyer into the Freightos platform, the Buyer shall be deemed to have warranted to the Seller the accuracy, at the time the Goods were consigned to the Seller, of all particulars relating to the general nature of the Goods, their marks, number, weight, volume and quantity and, if applicable, to the dangerous character of the Goods.
The Seller will not be held accountable for any costs, delays, or legal proceedings, that may result from nondisclosure of possible dangerous goods, and Buyer will hold the Seller harmless for any costs or expenses arising from the failure to declare.

 

4. Sellers Legal Obligations

Seller warrants that it is duly incorporated and holds all necessary licenses and has fulfilled all regulations necessary for performance of the Freight Forwarding Services.

Seller agrees to comply with all applicable anti-bribery, anti-money laundering, anti-corruption, anti-terrorism and human rights laws (including but not limited to the no-child-labor, compliance with minimum wages and no discrimination) and related international treaties and will institute and maintain policies and procedures designed to promote and achieve compliance with such laws and treaties. The Seller further will not, and will ensure that its affiliates, subsidiaries and sub-contractors will not, engage in activities prohibited under any anti-bribery, anti-money laundering, anti-corruption, anti-terrorism and human rights laws and related international treaties and treaties applicable to persons in relevant jurisdictions in which it does business.

 

5. Insurance

No insurance will be effected by the Seller, unless chosen by Buyer through Freightos. All insurances effected are subject to the usual exceptions and conditions of the policies of the insurance company or underwriters taking the risk.

 

6. Force Majeure

If at any time Seller’s performance is or is likely to be affected by any hindrance or risk of any kind not arising from any fault or neglect of the Seller and beyond the control of the Seller (a “Force Majeure Event”) and which cannot be avoided by the exercise of reasonable endeavour, the Seller may be excused from performance only to the extent made necessary by the Force Majeure event and only for the duration of the Force Majeure Event, at no liability to Seller or Buyer.
A party affected by a Force Majeure Event shall notify the other party as soon as possible, and the parties shall work together in good faith to find alternative solutions for continuation of the Shipment

Should the Force Majeure Event persist for or exceed 30 consecutive days the Buyer shall have the right to cancel the Shipment with no liability to Seller, other than payment incurred for services rendered prior to the Force Majeure Event. Seller shall use reasonable commercial steps to cooperate with Buyer in securing the shipment and shall assist in its handover to Buyer or its designated representative required for the same.

 

7. Liability and Exclusions

The Seller shall in no event be liable for:

  • Goods that are not included in the list of allowed commodities and Goods that were not declared to the Seller at the time of Booking the Shipment.
  • Loss following delays which are out of the Seller’s controls and occur despite the Seller making all reasonable efforts to avoid and remedy delays.
  • Indirect or consequential loss such as, but not limited to, loss of profit and loss of market.
  • Loss of or damage to the Goods due to inherent defect of the Goods.
  • Acts or omissions or misrepresentations of Buyer, its agents or any third party that the Buyer employs and improper packing or marking of Goods.

 

8. Customs Clearance and Import and Export Documents

If Buyer has not explicitly requested customs clearance from the Seller, it is presumed that Buyer has a customs broker or other third party handling customs clearance.

Buyer must have all required commercial documents, import licenses, export licenses, necessary for full execution of the Shipment, and the Seller has no responsibility for any delays or other costs or damages arising from lack of documentation.

 

9. General Lien

The Seller shall, to the extent permitted by the applicable law, have a general lien on the Goods and any documents relating thereto for any amount due at any time to the Seller from the Buyer or to Freightos for the account of Seller, including storage fees and the cost of recovering same, and may enforce such lien in any reasonable manner which Seller may think fit, provided that Buyer has been notified that payments are overdue and given time to rectify.

 

10. Abandoned Cargo

Seller shall be entitled to treat a Shipment as Abandoned Cargo under the following circumstances, provided there are no open disputes on the Shipment:

  • In a port-to-port shipment the Buyer does not make the necessary arrangements to pick-up the goods from the warehouse or destination point within 10 calendar days (or extended free time where relevant).
  • In a to-door shipment, the Buyer does not cooperate in customs clearance (including but not limited to involving any consigned in customs clearance) or prevents delivery efforts within 10 calendar days (or extended free time where relevant) after release notice.

Seller must notify Buyer in writing that the Shipment delivery cannot continue due to Buyer’s failure to make necessary arrangements or cooperate in customs clearance, and must make all reasonable attempts to mitigate damages and reduce associated costs, prior to treating a Shipment as Abandoned Cargo. If Buyer does not rectify the failure within 6 calendar days from receiving such notices, Seller shall be entitled to treat the Shipment as Abandoned Cargo. Seller must have proof that such notification was given.

Abandoning the Shipment entails ceasing the handling of the shipment if a pending payment such as for duties, taxes, or warehousing is not received. Seller shall abide with local laws and regulations once a Shipment is abandoned in accordance with this section.

 

11. Disputes

Any disputes between Buyer and Seller regarding the Quoted price for the Freight Services or Additional Charges shall be settled in accordance with the Freightos Dispute Policy.

 

12. Law and Jurisdiction

Any disputes other than those covered under the Freightos Dispute Policy shall be exclusively interpreted, construed and governed in accordance with the laws of England including all matters of construction, validity and performance. Any dispute arising out of or in connection with these Terms and Conditions shall be exclusively resolved by the appropriate courts of justice located in London (however if Buyer and Seller are both incorporated in the same country, which is not England, then the courts of their country’s capital shall have jurisdiction instead).

 

13. Mandatory Law

These Freightos Sellers Terms and Conditions shall only take effect to the extent that they are not contrary to the mandatory provisions of international conventions or national law applicable to the Freight Forwarding Services.