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Glossary · Logistics

What is Carrier Agreement?

A carrier agreement is the desi (Turkey's volumetric shipping weight unit) and pricing contract signed with a carrier in exchange for shipment volume. Instead of list prices it sets a volume-based discounted tariff, along with payment terms, damage and loss liability and return shipment conditions. In e-commerce this is often the single line that improves contribution margin fastest.

Detail

Looking only at the desi price in the agreement is an incomplete assessment. How return shipments are charged, the return fee for undeliverable parcels, the damage compensation ceiling, and invoicing and payment terms affect total cost as much as the price does. In Turkey the tariff can be renegotiated as the monthly shipment count grows; instead of updating the agreement once a year, you should go back to the table when a volume threshold is crossed. Working with two carriers in parallel provides both negotiating leverage and insurance against delays at a single company.

Example

An improvement of 3 TL per desi means 18,000 TL of direct contribution margin on 6,000 shipments a month.
FAQ

Common questions on this topic.

How is Carrier Agreement calculated?

Looking only at the desi price in the agreement is an incomplete assessment. How return shipments are charged, the return fee for undeliverable parcels, the damage compensation ceiling, and invoicing and payment terms affect total cost as much as the price does. In Turkey the tariff can be renegotiated as the monthly shipment count grows; instead of updating the agreement once a year, you should go back to the table when a volume threshold is crossed. Working with two carriers in parallel provides both negotiating leverage and insurance against delays at a single company.

Why does Carrier Agreement matter?

Looking only at the desi price in the agreement is an incomplete assessment. How return shipments are charged, the return fee for undeliverable parcels, the damage compensation ceiling, and invoicing and payment terms affect total cost as much as the price does. In Turkey the tariff can be renegotiated as the monthly s…

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