Freight Invoice Audit: Ensuring Accuracy and Cost Savings

Verify that the invoice contains accurate and complete information, including the shipment date, origin zip code, destination zip code, weight, NMFC Freight Class and other charges.

Ensure that all accessorial charges, such as fuel surcharges, detention charges, and others, are in compliance with the agreed-upon terms and conditions.

Verify that the carrier has applied the correct tariff rates to the shipment.  If a shipment is rated off the wrong pricing structure the charges will be incorrect.

Having an automated rating engine integrated directly into the TMS system can ensure the contract rate is saved down at the time of booking so the freight invoice can be automatically compared against the rate saved in the system.

A reweigh invoice dispute in the shipping industry occurs when a shipper disagrees with the weight of the freight that has been recorded on the carrier's invoice. In this case, the shipper believes that the weight of the freight is incorrect and disputes the weight with the carrier. The shipper may believe that the carrier has overcharged them for the freight, based on the weight recorded on the invoice.

To resolve a reweigh dispute, the shipper may request that the carrier reweigh the freight and provide a new invoice based on the actual weight. The shipper may also dispute the classification of the freight, which is another common invoice dispute in the shipping industry. In this case, the shipper disagrees with the classification code assigned to the freight by the carrier, which can impact the rate charged for the shipment.

Invoice disputes can be time-consuming and can impact the relationship between the shipper and the carrier. However, by working with a 3PL logistics management company that offers freight invoice audit services, such as TLI, shippers can have a team of audit experts on their side to help dispute reweigh and reclassification disputes with carriers, and ensure that their invoices are accurate and fair.

Invoicing reclassification in the shipping industry refers to a dispute over the classification of a shipment. Carriers use a standardized classification system to determine the appropriate rate to charge for a shipment, based on factors such as the weight, size, and type of the freight being shipped. However, sometimes shippers may dispute the classification code assigned to their shipment by the carrier.

For example, a shipper may argue that their shipment was misclassified by the carrier, resulting in an overcharge on their invoice. In this case, the shipper may request a reclassification of the shipment and dispute the carrier's invoice. The shipper may believe that the freight was incorrectly classified, and that a lower rate should have been charged for the shipment based on the true classification code.

Invoicing reclassification disputes can be complex and time-consuming, and can impact the relationship between the shipper and the carrier. That's why it's important for shippers to work with a trusted 3PL logistics management company, such as TLI, that offers freight invoice audit services. By partnering with a team of audit experts, shippers can have their invoices reviewed and audited to ensure that they are accurate and fair, and any reclassification disputes can be resolved quickly and efficiently.

A cubic capacity dispute in the shipping industry occurs when a shipper disputes the volume or cubic capacity of the freight being shipped. This type of dispute can arise when the carrier's invoice is based on the volume of the freight rather than its weight.

For example, if a shipper believes that the carrier has overcharged them for the shipment based on the volume or cubic capacity of the freight, they may dispute the cubic capacity with the carrier. The shipper may argue that the carrier has overestimated the volume of the shipment, resulting in an overcharge on the invoice.

To resolve a cubic capacity dispute, the shipper may request that the carrier re-measure the dimensions of the freight and provide a new invoice based on the accurate volume. This can be a time-consuming process and may require additional documentation to support the shipper's claim.

By partnering with a 3PL logistics management company, such as TLI, shippers can have access to freight invoice audit services that can help prevent cubic capacity disputes from occurring. Through rigorous auditing and verification of invoices, TLI can ensure that shippers are only paying for the accurate volume or weight of their shipments, and any disputes can be resolved quickly and efficiently.