Freight Indexation Clause
1. Purpose and Scope
These terms define when and how Northbull Imports / North Global Oy (“Operator”) is entitled to apply a Freight Indexation Adjustment (“Indexation Adjustment”) in connection with the Customer’s order.
These terms apply to deliveries involving one or more modes of transport, including road, rail, sea or air freight, as well as directly related handling, terminal and logistics services.
2. Product-Specific Shipping Cost
The shipping cost shown on the product page is calculated based on the delivery address provided by the Customer and the shipping details of the specific product. The shipping cost may therefore vary depending on the product, delivery location and transportation costs applicable at the time of calculation.
The shipping cost calculated on the product page is included in the total order price shown in the shopping cart and at checkout.
The shipping cost displayed in Google Shopping or other Google product services may be a product-specific estimate.
The shipping cost calculated on the online store’s product page and confirmed at checkout is the shipping cost applicable at the time of order. Due to the potentially long production and international transportation lead time, the freight portion may subsequently be adjusted only in accordance with the Freight Indexation Clause set out below.
3. Definitions
3.1 Freight Index Portion
“Freight Index Portion” means the part of the total delivery price relating directly to freight and freight-related charges, including, where applicable, bunker surcharges, currency surcharges relating to freight, emission surcharges, port and terminal charges, handling charges and equipment-related transport surcharges.
The Freight Index Portion does not include the sales price of the product or machine, accessories, installation or training costs, the Operator’s service fee, or other services unrelated to freight.
3.2 Indexation Adjustment
“Indexation Adjustment” means a price correction applied exclusively to the Freight Index Portion when necessary due to actual or objectively verifiable freight-related cost changes effective at or before the commencement of delivery.
3.3 Commencement of Delivery
“Commencement of Delivery” means the point at which the goods are handed over to the first carrier or are ready for loading at the factory or terminal under transportation arrangements made by the Operator, manufacturer or appointed freight forwarder.
4. Rationale for Indexation Adjustment
Products and machines are generally manufactured to order, and freight market prices may fluctuate significantly during the production lead time.
The delivery route may involve several stages, such as factory pickup, inland transportation, sea freight, port and terminal handling, unloading and onward delivery. Changes affecting individual parts of this logistics chain may therefore affect the total freight cost.
The purpose of the Indexation Adjustment is to account for material freight-related cost changes occurring between the order and the commencement of transportation. The adjustment applies only to the Freight Index Portion and not to the product price itself.
5. Principles and Maximum Amount
5.1 The Indexation Adjustment is applied only when necessary and is not charged automatically.
5.2 Where an upward adjustment is necessary, the adjustment may range between 10–15% of the Freight Index Portion. It is never calculated on the entire order or contract price.
5.3 The adjustment is based on the Freight Index Portion applicable at the commencement of delivery. The Freight Index Portion has been separately itemized at the order stage.
5.4 The exact adjustment percentage is determined reasonably in relation to the identified freight-related cost changes and applicable delivery conditions.
5.5 The Indexation Adjustment is not intended to increase the Operator’s margin. Its purpose is to reflect actual or objectively verifiable changes in freight and directly related logistics costs.
5.6 If actual freight costs have decreased significantly compared with the freight costs estimated at the time of order, the corresponding savings may be credited to the Customer up to a maximum of 10% of the Freight Index Portion, in accordance with the applicable Terms and Conditions.
6. Grounds for Indexation Adjustment
The Operator may apply an Indexation Adjustment where freight costs are materially affected by changes occurring before or at the commencement of delivery that are outside the Operator’s reasonable control.
Such grounds may include:
6.1 Market rates and freight surcharges
Changes in freight market rates or tariff-based surcharges, including GRI, PSS, BAF, CAF, WRS, congestion charges and emergency surcharges.
6.2 Sea freight rates and capacity
Changes in spot freight rates, seasonal demand, blank sailings, roll-overs, container availability or transport capacity.
6.3 Infrastructure and transportation routes
Canal closures, port congestion, route changes, rerouting or other material disruptions affecting the planned transportation route.
6.4 Labor and industrial action
Strikes, overtime bans, labor shortages or other industrial action affecting transportation or logistics services.
6.5 Weather and natural events
Storms, floods, ice conditions, earthquakes, volcanic eruptions or other natural events materially affecting transportation.
6.6 Regulatory and governmental changes directly affecting transportation costs
Inspection fees, sanctions, export controls, security requirements, health authority restrictions or other transport-related regulatory charges.
6.7 Epidemics, pandemics and health emergencies
Local outbreaks, quarantines, crew restrictions, terminal restrictions or other comparable measures affecting transportation.
6.8 Environmental and emission-related charges
Emissions trading costs, carbon surcharges, sulfur-related charges, environmental requirements or other freight-related environmental charges.
6.9 Security and risk-related measures
ISPS charges, scanning and inspection fees, heightened security requirements or comparable transportation-related security costs.
6.10 Equipment-related transportation surcharges
Special container availability, oversize or overweight charges, special transportation equipment or comparable equipment-related freight costs.
6.11 Origin and manufacturer charges directly related to transportation
Transport packaging, reinforcement, fumigation, loading or freight documentation required for transportation.
6.12 Handling, storage and delay-related freight charges
Demurrage, detention, free-time exceedance or other directly freight-related handling and storage charges arising from circumstances outside the Operator’s reasonable control.
6.13 Inland transportation surcharges
Road tolls, congestion charges, winter surcharges, fuel surcharges, remote-area charges or other directly related inland transportation costs.
6.14 Currency fluctuations affecting freight
Currency fluctuations affecting freight and freight-related charges payable in foreign currencies.
6.15 IT and cyber disruptions
IT failures, cyber incidents or system disruptions that cause rerouting or additional third-party logistics costs.
6.16 Changes in shipment information
Material changes in dimensions, weights, classifications, hazardous-material status or other shipment information affecting transportation costs.
6.17 Customer-requested changes
Changes to the delivery address, expedited transportation, additional stops, special transportation equipment or other delivery changes requested by the Customer.
6.18 Other comparable circumstances
Other objectively verifiable circumstances outside the Operator’s reasonable control that have a material and direct impact on actual freight costs.
The grounds listed above are illustrative rather than exhaustive. Any other ground must nevertheless have a material, direct and objectively verifiable connection to freight or freight-related logistics costs.
7. Procedure and Invoicing
7.1 Notice and Itemization
If an Indexation Adjustment becomes necessary, the Operator will notify the Customer as soon as reasonably possible and no later than at the commencement of delivery.
The notification will specify:
- the Freight Index Portion to which the adjustment applies;
- the applicable adjustment percentage; and
- the principal reason for the adjustment.
7.2 Timing
Any applicable Indexation Adjustment will be communicated and invoiced at the commencement of delivery, either as a separately identified item or on a separate invoice.
7.3 VAT and Statutory Treatment
Any applicable VAT or other statutory treatment of the Indexation Adjustment will be determined in accordance with applicable law and the tax treatment of the underlying freight service.
7.4 Documentation
Upon reasonable request, the Operator will provide reasonable supporting information concerning the basis of the adjustment, such as a carrier tariff notification, freight quotation, port charge or other relevant documentation where available.
8. Calculation Basis
The Indexation Adjustment is calculated by applying the applicable percentage of 10–15% to the Freight Index Portion only.
The exact percentage is determined reasonably in relation to the identified and objectively verifiable freight-related cost changes and the applicable delivery conditions.
The Indexation Adjustment is not calculated on the price of the product, accessories, the Operator’s service fee or unrelated services.
9. Relation to the Contract and Other Terms
These Freight Indexation Terms supplement the Operator’s general Terms and Conditions of Service and Delivery and the applicable Incoterms 2020 delivery term.
In the event of a conflict specifically concerning the calculation or application of a freight cost adjustment, these Freight Indexation Terms apply to the extent necessary to resolve that specific conflict.
All other matters remain governed by the applicable Terms and Conditions of Service and Delivery.
10. Limitation of Liability
An Indexation Adjustment is not a penalty or damages. It is a mechanism for allocating material and objectively verifiable changes in freight-related costs to the Freight Index Portion.
The Operator is not liable for consequential losses resulting from the acts, omissions or delays of carriers, ports, freight forwarders or other third parties, except to the extent otherwise required by mandatory applicable law.
11. Entry into Force
These Freight Indexation Terms enter into force upon publication in the online store and apply to orders placed on or after their effective date.
For orders placed before the effective date, the terms accepted or otherwise applicable at the time the order was placed shall continue to apply.