FRUSTRATED freight forwarders have been left without answers after meeting with WiseTech Global (WTG) executives over the firm’s controversial new billing model, which has been labelled “vague” and “ambiguous”.
A shipping forwarder, who spoke toDaily Cargo News anonymously, said the chairman Richard White and chief executive Zubin Appoo did not directly address specific questions.
He believed the situation was “up in arms”, and left customers confused about how fees will be processed at the end of December and beyond.
“(The meeting) didn’t give everyone too much faith in the new pricing structure,” the source said.
“No one’s really understands how it’s going to work.
“It did come across that way they were quite blasé about the impact and how vague ambiguous the release is and this new charge and their pricing structures.”
The source said it appeared different services will be charged individually.
“A shipment would be different to a brokerage job, which will be different to a warehouse job, which will be different to a transport job,” the source said.
“Even they (the executives) themselves couldn’t really explain the pricing structure to everyone.
“They gave a whole bunch of scenarios but couldn’t really pinpoint anything or give an exact answer.
“It was a bit concerning.”
Mr White and Mr Appoo admitted there were “bugs in the system” and some refunds were due to some of their customers.
“They’re now saying they’re a compliance platform,” the source said.
DCN understands WTG had sent out a letter to forwarders and brokers to pass on to their clients for invoicing purposes.
Freight and Trade Alliance director Paul Zalai said there was some reassurance from WTG that most members will not be paying more.
“The real test will come when members receive their end-of-month (December) reconciliation,” he said.
“If this holds true, it will be business as usual for most, while others may opt to use the new pass-through design feature intended to transfer software operational costs to client importers and exporters at a net rate.”
New features include access to a broad range of WiseTech Academy courses, including the Diploma in Freight Forwarding and the Diploma in Customs Broking, which Mr Zalai considered “a significant benefit for members.”
“Another promising development is the inclusion of extensive functionality enhancements, all bundled at a single price,” Mr Zalai said.
International Forwarders and Customers Brokers Association of Australia (IFCBAA) chief executive Scott Carson, who responded toDCN’s request during an annual planning meeting in Sydney, said they had maintained continuous communication with Mr Appoo.
“Both myself representing IFCBAA and Sherelle Kennelly representing CBAFF will await Zubin’s response to our detailed list of questions and concerns, to then be able to assess that response and then decide on updated organisation positions after that,” he said.