Contract and Rate Management

Using Arbitraries

Arbitraries represent a charge by a carrier for services that are not the primary services provided by that carrier. For example an ocean carrier provides water transport between primary ports. The ocean carrier can contract with other carriers to move the cargo on their behalf to and from secondary locations, usually by another mode of transportation. These charges are rendered as accessorial charges. You get one invoice with a charge for the main transport as well as each arbitrary as an accessorial charge.

OTM provides the capability to model arbitraries based on the geography of the lane where the service is provided. The rate offering lane special service is where the details are set up.

The rate offering lane special service is linked to a rate offering for the primary carrier as well as a special service on that rate offering. When the itinerary leg or network leg is configured to include via points, the logic reaches out to the rate offering lane special service based on the geography of the "arbitrary lane" that is made based on the shipment source and the source via point OR based on the destination via point and the shipment destination. The special service that is returned is used to narrow down the accessorial costs to be considered because only those with the same special service are considered.

Additionally, a level of service can also be provided on the rate offering lane special service to specify the method of transportation used. It is defined in abstract manner so that you can think of it as Express, Standard, or Economy. Likewise, you can configure it by the name of a mode such as truck, rail, intermodal, or barge. Additional settings are required to activate the level of service.

The naming convention of the rate offering lane special service should be sufficiently granular to include the attributes that are configured including the level of service. Since the special service is the result or the lookup, it is recommended that the special service share the same GID as the rate offering lane special service.

When using arbitraries, setting the parameter 'SPA EVALUATE VIA POINTS AND VOYAGES' to true allows the service provider assignment logic to change shipment via point locations based upon service provider, and thus allows the service provider assignment logic to select a service provider for a shipment even if different service providers require different via point locations.

The property glog.business.itinerary.queryToLimitArbLegOptions impacts arbitraries. When True, and arbitraries are defined on the leg, the logic that builds leg options queries ahead attempting to limit arbitrary locations that do not have valid port or arbitrary rates. Normally, this should be left True, unless all options would have rates and should be tested. In that case, the query to look ahead at rates would not provide any benefit.

Note: Orders to be planned on shipments with arbitraries should not have fixed rate records.

Related Topics