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Are you prepared to dispute unusual freight bill charges?

Scott McDevitt • Jul 13, 2023

Freight Bill Auditing

At first, you may think auditing freight bills is as easy as comparing a quote or comparing the contracted rate to the actual freight bill. If the information is correct, no further work is needed. If the bill is incorrect, notify the carrier and get it fixed. 



While this very generalized scenario may work in most cases, there are instances where it takes an experienced professional to resolve those “out of the ordinary” situations. 

Audit my Freight

If you are seeking assistance with reconciling your freight bills, delegate the task to TLI's shipping software.

freight bill

Freight Bill Dispute Examples:

Problem: 

Shipper sets up a density based shipment as 1,133 lbs., class 85. The freight charges are $233.32 

Solution: 

  • The carrier reweighs the shipment to1,465 lbs.  The freight charges are $ 300.98.   
  • Because it is a density item, the density went up when the weight did. This now reduces the class to 70. 
  • The carrier is notified that the charges should now be $240.78 and is corrected.


Problem: 

Client is charged a lift gate fee at the destination. 

Solution:

  • Google Street View shows the consignee has a dock. 
  • Carrier is questioned and given the facts.
  • Lift gate fee is waived. 


Problem: 

Carrier reweighs a shipment and provides a weight certificate at time of invoicing. 

Solution:

  • Checks the certificate for accuracy and look at previous shipment history for consistencies.
  • If Reweigh is not consistent with Client’s shipment/product weights, dispute weight change with Scale Calibration certificate, catalog page of product, and shipment history data. If the dispute is denied by the Carrier, contact Client for more documentation such as the packing slip or spec sheet of the product that was shipped. 
  • Carrier changes the invoice to the original weight and freight charges.


Problem: 

An invoice is received from the carrier with a commodity and/or class that has never been used before. 

Solution:

  • Verify the invoice matches the BOL. If it does, question the Client to make sure this was indeed the product shipped.
  • Most times, it’s a new product and the invoice is accurate. However, there are times when it isn’t classified properly and corrected with the carrier.


Freight Bill Reclassification

Unfortunately, amidst the mounting pile of daily tasks, back office teams frequently neglect freight rate auditing. Numerous shipping companies opt to delegate the audit process to trusted business process outsourcing (BPO) and technology firms.

  • What is included in the freight bill?

    The freight bill includes details such as the shipper's and receiver's names and contact information, zip code pair, a description of the goods being shipped, as well as the time and place the shipment will be delivered. Freight invoices may list additional charges, such as those for accessories.

  • What is the meaning of freight payment?

    At its core, "freight payment" means paying for transportation services. Essentially, a shipper pays a carrier to haul its freight.

  • How does freight billing work?

    When the carrier delivers the freight, they issue an invoice to the freight broker. The invoice undergoes validation to ensure accuracy and to verify that it hasn't been previously paid. Data from the invoice is retained for analysis. The payment amount is audited against the accessorial services used for verification.

  • Who pays freight bills?

    Translogistics pays freight bills to the carriers for services rendered, and TLI runs the freight bill through our freight invoice audit software. TLI then sends out a consolidated invoice for all modes of transportation for all carriers. Some shippers partnered with TLI will pay the carriers directly, and TLI provides their account teams a weekly remittance.

Are you able to give the attention to detail needed to provide this higher level of auditing? Partnering with a Logistics Solutions Provider with a combination of their own highly trained Audit Department and technology may be a good solution for you.

TLI Insights


For the latest insights, tips and commentary surrounding the logistics industry, look no further. Shippers will find thoughts from the award-winning team at Translogistics covering everything related to your transportation processes and plans. If you have a question we are readily available at insidesales@tli.email 

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