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Local charges. Independent client or Cargofive managed?

Differences between managing your own local charges or choosing to have us manage them for you.

Updated over 8 months ago

At Cargofive there are currently two ways to manage the local charges on your account. The first is to let us manage your local charges, with periodic price and expiry updates, based on both the contracts you upload to the platform and the notices received from the shipping companies about changes in these surcharges. The second option is to manage the local charges yourself, so these price and expiry updates will be controlled by you. Let's explore the benefits of each option so that you have all the information you need to choose the method that best suits your business.

Cargofive Management:

This is the most used option by our customers, it allows you to forget about the periodic update of local charges done by most of the big carriers like MSC, ZIM, ONE, OOCL etc.

✅You will have your local charges always up to date in all your loaded contract rates without having to enter this manually in the system.

✅We periodically review the local charges on the renewal dates, usually January, April, July and September, i.e. every quarter. But we also make intra-quarterly updates for one-off changes following notification from the shipping lines of these changes. Each of these updates will be notified by email so that you are up to date with all the info.

⚠️The only thing you should bear in mind is that to avoid overcharging or misquoting, this standard only includes those local charges that are ALWAYS charged, for example the documentation surcharge, the THC or the logistics management. Whereas surcharges that are optional, such as a BL correction are not covered.

Surcharges with a variable amount such as T3 or the bank charge are also not reflected as it is currently not possible for us to calculate the amount of these surcharges in Cargofive.

⚠️Additionally you must take into account that these surcharges will always reflect the price standardised by the shipping company in their general local tariffs. In other words, this list does not include the THC with special price of a specific contract but the price established by the carrier for the general tariffs.

Own locals management: 🙋🏻‍♀️

This option is used by some of our customers because it allows them to add surcharges that we do not normally add, but mainly because it allows you to add your own business extras that are charged to the customer as a surcharge for shipment handling or for correcting delivery instructions.

✅This option allows you to add as many locals as you wish to your company, but as mentioned above, it is not subject to any control by us. ⚠️

⚠️This means that if a carrier updates a price of for example a THC you will have to edit the amount manually from the locals module. For cases in which you need to make massive changes, of validity for example, you can request that we do it for you, but the update will NOT be automatic as it is when the management depends on us.

⚠️When it comes to uploading your local expenses you will not need to do it manually one by one as Cargofive can help you with this upload, but you will need to fill in the locals template correctly so we can upload them for you.

There is a third option but you have to be very careful with it.

Cargofive management of locals with your own locals added:

Nowadays it is possible to load your own locals even if the management is done from Cargofive but it is important to take into account that these requests for loading premises have a limit, and cannot include locals that Cargofive loads in its standard (such as the THC for example) as the data would be corrupted by inconsistencies and could cause duplicates.

These locals must also have a validity date that is completely different from the standard so that we can detect them in periodic updates and avoid deleting them, as these updates overwrite existing data which makes all data whose validity dates are flagged for update disappear. ⚠️

For example, if we are preparing the July update, as a general rule, premises whose expiry date is in June will be overwritten, as this is the date that is set in the second quarter update. Therefore, if you register your own premises you should give it a validity until 31/12/2099, so that the data will not be overwritten in that update or in the next one.

⚠️You must set the same validity for all the premises you add manually so we can better control them and avoid deleting this data from your account (31/12/2099).

⚠️ If you need to register a local for a short period of time you can give it the actual validity as it will eventually become invalid and there will be no problem with it being overwritten in updates (e.g. during the second half of a month there is an additional surcharge for work overload).

⚠️You must also note that as these charges are an exception there is a limit of 20 extra surcharges to register (this also includes the ones you register manually), if you exceed this number your account will start to be considered independent in the next locals update and you will be notified by email so you can decide whether to go back to standard or become independent from that point on.

Remember that if you still have any questions we are at your disposal in the chat or via email support@cargofive.com 😊✨

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