Common freight and parcel billing errors

4 min read

Carrier invoices list thousands of lines, each with a base rate and a set of add-ons. A small error on one shipment costs little. The same error on every shipment adds up. This article covers common freight and parcel billing errors and a routine for catching them before the dispute window closes.

Billable weight

Carriers may charge by dimensional weight, which depends on package size, when it exceeds actual weight. A comparison of common invoice overcharges from the Dash blog says to check the dimensions on the invoice against your own measurements, then recalculate using the carrier's divisor. Rounding rules also matter, so confirm that your calculation follows the carrier's current method. [VERIFY: the carrier's current dimensional weight rules and rounding]

If your shipping system records package dimensions, export them and compare them with the carrier's data.

Residential and address charges

Two charges appear often:

  • A residential surcharge on a delivery to a business address
  • An address correction fee when the address you gave was already right

Sort invoice lines with these charges, then compare each address with your order records. A business that ships to the same commercial customers every week can often spot a wrong surcharge fast.

Late deliveries

Some services carry a delivery guarantee, and a late shipment may qualify for a refund of the shipping charge. A refund does not apply automatically. The shipping-technology blog ShipScience explains that you need the tracking number and that claims have time limits that vary by service and carrier terms. UPS's own Irish guarantee page, for instance, requires a claim within 15 days of the scheduled delivery date, and it excludes delays outside its control. Terms differ by country and service, so read the ones that apply to your account. [VERIFY: current service guarantee terms and claim deadlines for your carrier and account]

Duplicate lines and wrong service levels

During peak periods, the same shipment may appear twice. Search for repeated tracking numbers, dates and amounts. Also compare the service on each invoice line with the service you booked. Billing for a faster class than you ordered is a frequent mismatch.

Accessorial fees

Accessorial charges cover extras such as Saturday delivery, signature confirmation, liftgate use or waiting time. Each should match something your team requested or something that happened. Unrequested extras are a recurring error, and so is a fuel surcharge calculated at the wrong rate or for the wrong period. Compare it with the carrier's published rate and your contract.

Freight versus parcel

Parcel invoices are high in volume and low in value per line. Freight invoices, such as less-than-truckload or full truckload, have fewer lines and larger amounts, and they depend on class, weight, route and contract. The checks differ. For freight, compare each bill with the rate agreement, the bill of lading and the delivery receipt.

A weekly routine

  1. Download the carrier invoice data in a spreadsheet-friendly format.
  2. Sort by tracking number and flag repeats.
  3. Filter every accessorial charge and match it to a request or event.
  4. Sample twenty shipments and recheck weight and dimensions.
  5. List late deliveries on guaranteed services and file claims inside the window.
  6. Confirm the fuel surcharge against the published rate.
  7. Log each dispute with its date, reference and outcome.
  8. Review contract rates at least once a year.

A weekly rhythm matters because carriers set short dispute windows. Dash notes that disputes are generally expected within about 15 days of the invoice date, though your terms may differ.

When to ask a partner firm

If volumes are high, manual checks lag behind. Freight and parcel reviews examine invoices against rates and service terms. The firm that fits depends on your size, and Fairview matches by hand. See what to gather before a freight and parcel audit and the request page.

Sources

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