Posted in Operations and Supply Chain Terms, Total Reads: 255
Definition: Intercorporate Hauling
Intercorporate Hauling refers to the process of transportation or transfer of goods, people or property by a mode of transport or a carrier that belongs to the corporate as a subsidiary or some other form of holding. The carrier in case of intercorporate hauling belong to the same corporate family. The compensation in case of intercorporate hauling s provided for by other members of the corporate family.
Basically, in case of intercorporate hauling, one company appoints another company for transporting goods or materials or passengers to be moved from a source point to the destination point and another company pays the compensation to the company transporting such goods or materials or people to the company. The company appointing the carrier company, the carrier company and the company paying the compensation in case of intercorporate hauling all belong to the same corporate family.
For example, if a company owes a manufacturing unit, a transport facility company and several other units and if the manufacturing unit books the transport facility for transporting goods and the third company pays the compensation to the transport unit, then such a case is a case of intercorporate hauling.