July 31, 2017

Simple for cargo transportation, its causes and consequences

The fact that the truck in Ukraine, on average, is idle for about half a day, has been known for a long time. Experts vied with one another that an inefficient system of distribution of working hours is one of the reasons for the high cost of logistics services and the inability of carriers to update the fleet in a timely manner, since they have to contain more than the necessary number of machines.

In order to minimize risks, shippers and logistics companies try to write off compensation for idle time in a service contract, but this does not always work. The role plays both the specificity of the market and the human factor, so let’s analyze what are the reasons for how to secure yourself and what to do if the goods “hang” at the place of unloading.

Problems of the consignor

If the schedule of unloading machines is very tight, and any delay entails the need to redraw all plans and work overtime, it is necessary to check the passage of the machine along the route. Establish a connection with the driver in person or through the manager, periodically check where the machine is located, so as not to lose the appointed time of arrival.

If force majeure happened to you, warn that time is busy. Let the truck stand somewhere in the parking lot on the way, rather than replenish the queue of cars near the gate of your enterprise. When simple is obtained through the fault of the carrier – this is a completely different story. Take the trouble to make a point about the penalty in the service or insurance agreement, and you are safe.

Carrier risks

Naturally, the simple beats, first of all, on the pocket of the Logistics company and the driver’s nerves. Often there are situations when the consignor wants to work only under his contract, which indicates the time for unloading to 24 or even 48 hours. This moment must immediately be stipulated, otherwise you will have a long and tedious attempt to achieve unloading in the telephone mode.

It happens that the customer of services agrees with everyone, calls a good reason for the delay and declares his willingness to pay a simple after discharge, but does not transfer money. Here, the carrier has two ways: to put up and forget, or “beat out” money in court without guarantee of result. What to do – the personal choice of the company’s management.

It should also be noted that there is no clear price for a simple one. They are established in accordance with the procedure of the contract. The only rule that has developed historically is that it is two times more expensive for international transportation than for domestic ones. Everything is stipulated “on the shore”, if the customer of services is relevant.

Interesting, but sometimes simple is beneficial to both parties. A living example is trading in the market with cars. As a rule, transportation is ordered immediately with idle time, until the goods are sold. Cooperation is mutually beneficial when setting a good tariff.

True, such transactions are usually agreed by private traders. Companies prefer to keep cars on the move in order to execute as many deliveries as possible over an interval of time. Otherwise, there is a shortage of transport, which is exacerbated by the reluctance of some customers to pay for overtime simple and jeopardizes not that development but survival in the market.

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