Management of carriage


Management of carriage

What does a management of carriage mean? This English term in the Polish language is translated into "gestia". It is a set of rights and duties of a particular freight organization and its costs included in the purchase contract. The main assumptions of the management of carriage concern, first of all, the cooperation between the seller and the buyer, therefore their decisions are precisely written down, thanks to which all conditions of the relationship are normalized by both parties. In addition, partners should agree on the organization of the order and fairly divide responsibilities, so as not to leave any insinuations. It is worthwhile for each party to the agreement to analyze on its own all the risks and possible benefits of organizing such a type of transport. Among the jointly made decisions is, first of all, who will organize the reloading of goods, who will be the carrier, and whether any changes will be made on the main section of the route. 

Types of management of carriage

The most common types of management of carriage include own and mixed. The own management of carriage occurs when it is the importer or exporter who is responsible for arranging the transportation and paying for the entire transaction. However, in the case of the mixed management of carriage, the seller is responsible for transporting the goods to the shipper's port whereas it is the buyer who is responsible for the rest. In the next stage, it is the seller who should arrange further carriage and possible transshipment. This division of costs is usually advantageous for both parties to the contract.

Advantages of management of carriage - what does this arrangement offer?

Have you been wondering what the management of carriage offers? Well, this solution is associated with many benefits. First of all, connections, cooperation, and mutual agreements with other transport or forwarding companies allow for a significant reduction of transport costs. Additionally, the management of carriage allows maintaining control over every aspect of the realized activities, which is connected to the simultaneous increase of responsibility for the delivery of goods.

Dangers of the management of carriage

In addition to the advantages, it is also worth mentioning the dangers associated with the management of carriage. The first of them is the risk of an increase in prices of carriers in international transport in comparison to the accepted calculation. This way both the handling of goods and the price of the container will be higher than planned. Such a situation will be associated with the advantage of costs over profits, which will not be a favorable solution. Another inconvenience in the case of management of carriage may be the problem of finding a carrier who will undertake the cooperation on specific conditions (e.g. lack of specialized equipment or lack of places on ships), which may affect the reliability and timeliness of work, and may also be the cause of acting under stress and time pressure.