Handling Charges
Handling charges are fees applied for the physical management of cargo during key logistics stages such as loading, unloading, container stuffing, or warehouse transfers. These charges vary by service type, cargo nature, and location, and are critical to overall shipment costing. In logistics ERP systems, handling charges are configured by activity and location, then auto-applied during job processing to ensure accurate, consistent billing.
How Handling Charges Work in Logistics?
Within the ERP, handling charges are pre-set under charge codes linked to specific services like palletization, container loading, or cross-docking. When a shipment is created or a milestone is completed, the ERP auto-calculates the applicable handling charge based on volume, weight, or service type. These charges are recorded in the job file and reflected in the final customer invoice or vendor cost summary.
Functional Advantages in Logistics Operations
Accurate Cost Allocation
The ERP ensures handling charges are applied based on service rules and shipment data, providing a true reflection of operational costs for each job.
Automated Invoicing and Charge Capture
Handling fees are automatically pulled into billing modules when milestones are reached, eliminating manual entry and ensuring no service goes unbilled.
Standardization Across Branches
Central charge setup in the ERP ensures consistent application of handling rates across warehouses, depots, and regional offices, improving financial control.
Improved Profitability Tracking
Since handling charges are tracked per job, the ERP helps managers analyze cost-to-revenue ratios and identify high-margin or loss-making shipments.
Customer Transparency
Handling charges are itemized on quotes and invoices, giving clients clear visibility into service breakdowns and reducing billing disputes.
Conclusion
Handling charges represent a critical part of logistics costing and revenue. When automated through the ERP, they ensure that every physical service, whether in a port, warehouse, or terminal, is accurately captured and billed. This improves operational transparency, strengthens financial accuracy, and protects profit margins in day-to-day freight operations.