Freight Orders: Understanding Freight Orders

A freight order serves as a formal agreement between a freight provider and a customer, facilitating the transportation of commodities from a designated pick-up site to a specified delivery site. It is essential to recognise that there are two distinct types of freight orders that cater to different scenarios

1. Customer Only Freight Order

Scenario:
You, as the customer, have grain located at one site and require its relocation to another site. This type of freight order involves the movement of grain without a change in ownership. Essentially, the customer is the sole party engaged in this transaction.

Key Points:

• Grain is transported from one location to another.
• No change in ownership occurs during the transportation process.
• Customer is the exclusive party involved.

2. Seller to Buyer Freight Order

Scenario:

This type of freight order involves two primary parties—the seller and the buyer. The grain is picked up from the seller's location and delivered to the buyer's location. Importantly, ownership of the grain is transferred from the seller to the buyer during this process.

Key Points:

• Involves two parties: seller and buyer.
• Grain is picked up from the seller's location and delivered to the buyer's location.
• Ownership of the grain is transferred from the seller to the buyer.
• Requires the selection of a contract number for proper documentation.

When creating a freight order, it's crucial to determine the specific type based on the nature of the transaction—whether it's a customer-only movement without ownership change or a transaction involving the transfer of ownership from seller to buyer. Additionally, for Seller to Buyer Freight Orders, selecting an appropriate contract number is a necessary step to ensure accurate and comprehensive documentation of the transaction.