Shipping Cost Allocation
Shipping cost allocation is a financial approach for allocating freight expenses equally across various shipments, clients, or business divisions. In logistics and freight forwarding, a single cargo or transport activity may involve several orders or clients. Cost allocation guarantees that each partner pays an appropriate amount of the total transportation cost based on relevant parameters such as weight, volume, distance, or value of commodities.
Shipping cost allocation in CargoWise can be automated using user-defined criteria and allocation templates. The solution allows users to apply cost-sharing logic at the task or consolidation level, resulting in more accurate billing and expense control. This feature is particularly crucial for freight forwarders who handle groupage (LCL), multi-customer air freight, or intermodal shipments. Proper allocation promotes financial transparency, improves profitability analysis, and increases consumer trust by guaranteeing that charges are justified and traceable.
