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20
Jan
2021

Chargebacks in Logistics

by Michael Kotendzhi | Logistics
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Penalties and chargebacks are the significant parts of ongoing costs for most carriers as they are unavoidable when accidents happen. Many major retailers are strict with the transportation processes and the providers as the persistent demands are not allowing much of a wiggle room to be flexible on shipment departures and arrivals. When contracting two parties, charges and penalties are ordinarily stated prior to the partnership.

In Vancouver, British Columbia, several retail giants are extremely rigorous applying these charges and penalties such as Home Depot, PepsiCo, or Walmart. Their on-time monitoring program charges at a fixed rate of the total value of the shipment when they do not arrive on time or damaged, not on the amount of damaged or missed goods. Imagine the substantial amount of shipment transporting on a daily, weekly, and monthly basis, the chance of missing or late shipments are inevitable to happen hence the extra charges.

Wow! Imagine the overall chargebacks can substantially reach between 2% to 5% of deductions, from total revenues from the customer.

Being a totally adequate and responsible carrier especially for the large companies certainly comes with a certain level of support and ratification. 18 Wheels Logistics Team provides the best quality of services for our customers to ensure all shipments on time with specifications. Our talented team members can assist in labelingwarehousingtrucking, and copacking. We are here for you! 


Michael Kotendzhi is President of Operations & Transportation and a partner at 18 Wheels. Michael has over 15 years of experience and is equipped with a degree in Logistics from the University of British Columbia Sauder School of Business. As well as a background in logistics from XPO Logistics (formally Kelron Logistics), North America's largest contract warehousing provider.

Michael's experience includes supply chain management, reverse logistics, & domestic transportation. He has developed 18 Wheels' trucking solutions, effectively utilizing the sister company's vehicle fleet and building a transportation supply-chain network across North America.