Rate and quotation management overview
Rates play a crucial role in the transportation industry. They determine the cost of shipping goods from one location to another. There are two main options when it comes to rates: Quotations for spot rates and Contracts for rates that are agreed upon and valid for a longer period of time.
Quotations for spot rates are used for one-time shipments or short-term arrangements. These rates are typically provided by freight forwarders based on the current market conditions. Spot rates are flexible and can vary depending on factors such as demand, capacity, and fuel prices. They are often used when there is no long-term commitment or when the shipping needs are unpredictable.
On the other hand, Contracts are used for rates that are agreed upon and valid for a longer time. These rates are negotiated between freight forwarders and carriers or customers.
To get a full understanding on how the cost and revenues are calculated on a forwarding document:
| To | See |
|---|---|
| understand and configure for which parties revenues or costs will be calculated on a shipment, depending on the type of shipment and the Incoterms. | Document contract strategy |
| understand how the system will find the valid contract(s) | Contract strategy |
| learn about contracts. | Contracts |
| learn about quotations, calculations and converting a quote into shipments. | Quotations |