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Old 04-29-2013, 04:46 PM
pizzatony
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Default Who Chooses Freight Buyer or Supplier

I work for a large medical device manufacturer and we negotiate our freight rates with common carriers for national rates. I have asked one of our vendors to use our freight account, and he refuses saying that he is shipping the material FOB destination, and he wants to chose the way the material ships, but still bill me for the cost. I explained that we have negotiated rates, and want to use our own account, and still he can ship FOB destination.

He says that he has the legal right to chose how the material will ship. I have never heard of such a process. Can you please shed light on this topic for me? Thanks
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Old 06-25-2013, 06:35 PM
KatinaC
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Quote:
Originally Posted by pizzatony View Post
I work for a large medical device manufacturer and we negotiate our freight rates with common carriers for national rates. I have asked one of our vendors to use our freight account, and he refuses saying that he is shipping the material FOB destination, and he wants to chose the way the material ships, but still bill me for the cost. I explained that we have negotiated rates, and want to use our own account, and still he can ship FOB destination.

He says that he has the legal right to chose how the material will ship. I have never heard of such a process. Can you please shed light on this topic for me? Thanks
As the customer, you have the right to choose who pays for freight. In your case, the freight would be collect to your common carrier. You need to have a frank conversation with your vendor before you place the next contract. This kind of thing needs to get worked out before an order or contract is placed. It appears that there might be a misunderstanding between title transfer and cost of freight, as this is a common misunderstanding in logistics between buyer and seller. I would recommend you purchase a copy of the Dictionary of International Trade by Edward G. Hinkelman. It is a useful desk reference.
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Old 06-26-2013, 10:02 PM
ourflat
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I agree with KatinaC's comments. I would suspect other reasons why the vendor is shipping with his/her carrier.
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