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How does Third Party Billing work?

The following Shipping Lines use third party exception billing:

  • CMA-CGM
  • COSCO
  • Hamburg Süd
  • Hanjin
  • Hapag-Lloyd
  • Hyundai
  • "K" Line
  • NYK
  • OOCL
  • Yang Ming

There are two components in third party billing: Haulage Type and Service Contracts. 

Haulage Type

There are three types of haulage, which is visible on the Manage Trips screen:

    1. Merchant Haulage (MH) means the motor carrier pays for the chassis, unless a valid Service Contract is present
    2. Carrier Haulage (CH) means the ocean carrier pays for the chassis
    3. Empty Reposition (MT) also means the ocean carrier pays for the chassis

If no Haulage Type is indicated, the trip is by default treated as Merchant Haulage.

Service Contract

If the motor carrier has a Service Contract with the ocean carrier, or if the cargo being moved is on behalf of a company which has a Service Contract, any relevant trip will be treated as Carrier Haulage. With a valid Service Contract, even MH moves will bill to the ocean carrier. The service contract is not visible to the motor carrier.

If you are ever uncertain whether you are being billed for a trip, just check the Bill-to Party SCAC column. If the trip is MH with no Service Contract, this column will display the motor carrier's SCAC. If the trip is CH or has a valid Service Contract, this column will display the shipping party SCAC.

If a trip is labeled incorrectly, for instance as MH rather than CH, just use the normal dispute process. Also, please note that you can only flag trips as reviewed where you are the Bill-to Party.

 

Related questions:

How do I dispute a rental?

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