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Important information explaining storage charge billing formats...

Monthly vs Daily Storage Billing Formats
Cloverdale Cold Storage Ltd. is one of the very few PRW’s to offer daily storage billing and it is extremely important to understand the differences between the Daily and the Monthly Storage billing formats.  The most significant difference is that with the daily storage format, the storage charge does not begin until the date that the product arrives at the warehouse for storage and ends on the date of withdrawal. This is different from the more traditional Monthly Storage Billing format which charges in full month increments. The Monthly Billing Format charges storage for as many as 15 days prior to the product even arriving at the storage facility and as much as 30 days after the product has been withdrawn.

Here is a summary of handling and storage definitions. Following this, you'll find a comparison of the daily vs monthly billing formats.

Handling Charge:
The handling charge is generally charged upon the receipt of goods into the warehouse. The handling rate covers the labor cost related to receiving, checking for damage or discrepancy, put-away, order assembly, staging and palletized truck loading. Most companies bill the entire (in and out) handling rate on the initial receipt. There may also be a separate order picking charge billed on a “per case” basis, although often companies will build order assembly into the basic handling rate.

Initial Storage Charges: The initial storage charge is also billed on receipt and covers a predetermined length of time for which the product is in storage. Storage charges offset the use of the space required for storage.

Recurring Storage Charges: The recurring storage charges kick in when the initial storage period expires. Initial storage generally covers a minimum length of time and if the product remains in storage beyond that minimum, the recurring storage commences.

Special or Ancillary Services: The list of these services may vary from one operator to another but generally include such things as meat inspection, the loading or unloading of floor loaded trailers or containers, cross-docking, re-palletizing, labeling, tallying weights, and other labor related tasks.

Daily Storage Billing Format - CLOVERDALE COLD STORAGE LTD.
Handling is billed on the receipt of goods into the warehouse.
An “initial storage charge” is billed upon receipt of the goods and covers the first 10 days that the product remains in storage, regardless of how long the product remains in storage. The storage period begins on the date of receipt.
Then, at the conclusion of the minimum 10 day initial storage period, the Warehouse Management System begins to track the number of days in storage, beyond the 10 day minimum, and then bills at month end for that precise number of storage days.

Important note: This recurring daily storage charge ends on the date of the withdrawal of the product.
Note: The handling and initial storage is billed in advance but the daily recurring storage is billed at the end of the billing period.

Monthly Storage Billing Format (split month) - OTHER STORAGE COMPANIES
Handling is billed on the receipt of goods into the warehouse.
For product received between the 1st and the 15th of the month, a full month storage charge is applied and billed on the initial receipt invoice.
For product received between the 16th and 29th of the month one half of a full month storage charge is applied and billed on the initial receipt invoice.
Then, on the first day of each subsequent month that the product remains in storage, another full month charge is applied (in advance).
NOTE: If the product arrives at the warehouse on the 12th day of a month (for example) the storage charge is for the FULL calendar month,
And, if the customer withdraws their product on the 5th day of a subsequent month, the warehouse will already have billed for that FULL month of storage in advance.
There is a risk of penalty on both the front end and the back end of the storage period.


Please Read the Terms and Conditions of Storage carefully. Click the terms and conditions button below.

Terms and Conditions

 

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