Companies in Texas and near the Gulf of Mexico may need to ship products inland as part of normal business operations. Negotiating a good deal is important, but so is making sure all of the details are worked out to protect the businesses involved in the transaction. Understanding what the business is expected to ship, the product’s fragility and if it’s prone to damage or theft can also play a large part in the negotiation.
During a freight negotiation, a business must be sure to have both the administrative and shipping side of things well understood and agreed upon. The administrative aspects include addressing the costs to the current carrier that the business is using and how quickly the accounts payable receive their payments. It’s also important to know the normal shipping schedule and where the products normally go. Knowing all these aspects will help prepare both parties for making an agreement. If the shipments happen too often or go too far for the company, then the companies working together would not be a good fit.
Both companies must also know the expectations of the shipping aspects as this is the service that’s being agreed upon. They should understand what the freight is and how much tonnage is typically shipped per destination. When negotiating, both parties should come to the data with supporting documents and knowledge for what is expected and what can be reasonably accomplished.
If a major contract problem arises, it may be wise to hire a business litigation attorney. Legal counsel could provide the support required for resolution and potential retribution from damages and lost product and sales.