What Are Freight Billing Adjustments
So, what are freight billing adjustments and what can you do to avoid them on your next shipment? We go into the details you need to know here.
What Are Freight Billing Adjustments
Your freight shipment has been sent to your consignee. You’ve done all the hard work, and now all that’s left to do is to pay your final bill (which you already have since you gave your credit card during booking). The final invoice arrives, and you read it through.
Huh? You see some charges on your new invoice that weren’t on the original copy you received right after booking. You check your bank accountant, call the carrier, and consult your 3PL; the charges are legitimate. The carrier added these latest charges because the weight and dimensions you provided during the booking weren’t correct. Unfortunately, you’ve received every shipper’s biggest headache: a billing adjustment.
Receiving one of these adjustments can be an unpleasant surprise, but there are ways to lower their occurrence. So, what are billing adjustments, and what can you do to avoid them? We go into the details you need to know here.
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Why Choose FreightCenter for Freight Shipping?
Expertise in Freight Shipping: With over 25 years in the logistics industry, FreightCenter is dedicated to guiding you through the entire logistics process, from beginning to end. Our goal is to make freight shipping easy to understand and book. Don’t waste time researching and receiving quotes from individual carriers- FreightCenter’s got your back!
Competitive Rates with Tailored Solutions: We prioritize high-quality customer service without breaking your wallet. We utilize our relationships with regional and national carriers to offer you competitive, affordable rates while providing personalized solutions to your needs. Need a liftgate? We got you! Want to expedite your order? Leave it to us! We’re ready to provide tailored solutions that don’t compromise your freight shipment.
Personalized Customer Support: FreightCenter is committed to satisfying our customers. Our friendly customer support team is here to help you every step of the way, from initial inquiries to post-shipment concerns. We handle all aspects of logistics, including tracking, paperwork, and communication with carriers, so you can focus on your business while we manage your shipment. Choose us for our reliable service and affordable quotes!
What Are Billing Adjustments?
Billing Adjustments are unpaid freight shipping costs the carrier reported that weren’t part of the original estimated freight quote. The adjustments are almost always upcharges; there is hardly any reason for a sudden drop in your invoice amount (since any discounts and coupons are accounted for during booking).
Sometimes, billing adjustments are called a “rebill.” This happens when a second invoice is sent to the third-party logistics provider (3PL), such as FreightCenter, because of a discrepancy between the original freight quote the shipper filled out and what the carrier reports during their inspection and transportation process. The carrier sends the second invoice to the 3PL, and then the 3PL sends an invoice to the shipper for the additional charges from the carrier.
Anytime a truck driver performs services beyond what is stated in your bill of lading (BOL), they will list those additional services on the proof of delivery (POD). After inspecting your shipment, the driver will sign and provide you and your 3PL with a copy of the proof of delivery form. This POD document will include the weight, dimensions, and contents of your shipment, any additional services provided, and any damage to the freight (if there is any).
Reasons for Billing Adjustments
You may receive a billing adjustment after the shipment is completed if your original freight quote differs from the carrier’s reports. Here are some common reasons for billing adjustments:
- A difference in the dimensions or number of items being shipped: If the consignee and carrier discover the number of items within the shipment or the size and weight of the shipment is different compared to the original BOL, a billing adjustment may be added to the final bill. However, this could also be a case of cargo theft, where a thief pilfered through the shipment and only took a few things out of the shipment. If the shipper and consignee suspect a robbery took place, the shipper must file a claim with the
- Freight reclassification: If a driver or terminal worker inspects the freight and realizes the shipment is more fragile or denser than listed in the original BOL, the carrier will reclassify the shipment and add an upcharge for the trouble.
- Incorrect weight or dimensions: This applies more to LTL shipping than full truckload shipping, as every shipment during an LTL delivery will go to a terminal and enter a dimensioner. This machine can accurately measure a shipment’s precise weight and dimensions. If the measurements don’t align with the original BOL’s measurements, a billing adjustment will be added.
- Carrier added the required add-on services or accessorials that weren’t included beforehand: These accessorials include liftgates, white-glove services, limited access locations, hazardous material shipping, and more. A more comprehensive look into accessorials can be found in our Guide to Accessorials.
Remember that freight carriers weigh and measure shipments during the inspection process. They use sophisticated, multidimensional measurement tools to weigh and measure your shipment accurately. If any shipper-reported shipment details are incomplete or incorrect after the carrier inspects the shipment, you may receive a billing adjustment for the final shipment charge after the delivery. You can learn more about this on FreightCenter’s Terms & Conditions page.
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How Can You Avoid These Charges?
When it comes to avoiding billing adjustments, accuracy is key. Here are some simple steps you can take now:
- Be accurate – Estimating weight and dimensions will end with a billing adjustment headache later. Remember to weigh and measure your fully packaged cargo accurately. Also, use an industrial freight scale and always round up when measuring dimensions. Create specification sheets for all your products or ask the manufacturer for a spec sheet to ensure you are shipping with accurate details.
- Get your shipment’s freight class right — Carriers use freight class to help them price the shipping cost. To avoid a costly reclassification billing adjustment, know your shipment’s freight class by using our freight class lookup tool.
- Location, location, location – Freight shipments are heavy as they’re intended to be picked up from a loading dock and delivered to a loading dock. However, not every place has a loading dock. When no loading dock is present, freight is picked up and/or delivered curbside. That’s where the carriers’ responsibility ends. That means you might need to add a lift gate or forklift accessorial at pickup and delivery to avoid being charged extra for making the driver use one without advanced notice. Know when you’re shipping freight to destinations with special requirements. A FreightCenter agent can see both the pickup and delivery locations to help you, but be proactive if you know your area won’t fit a semi-trailer.
- Triple check – Work with a 3PL to triple-check that your shipment has all the required accessorials before booking your shipment. You want to be sure your shipment details, such as freight class, measurements, weight, and locations, are accurate on your quote.
3PLs Help Reduce Billing Adjustments
When you have to go through every step of the shipping process yourself, you’re more likely to make mistakes that could result in costly billing adjustments later. Working with a 3PL partner takes the guesswork out of the shipping process by giving you access to the best shipping resources, one-on-one support from an expert shipping agent, affordable freight rates, various accessorials to meet your shipping needs, and innovative features.
Don’t let billing adjustments surprise you or give you shipping nightmares. Let our experts help you ship smoothly and successfully by giving us a call at 800-716-7608 or use our free online freight quote tool here.
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Frequently Asked Questions to Explain What Are Freight Billing Adjustments
Q. What Are Freight Billing Adjustments?
Freight Billing Adjustments are changes made to your final freight invoice for any additional charges the carrier included during delivery. These changes can be found in your Proof of Delivery (POD) or on your final invoice post-delivery.
Q. Why did I receive a billing adjustment?
Billing adjustments can be made for many reasons. Some factors include your freight having different dimensions than what your BOL stated, the freight having fewer items than initially stated in the BOL, carriers having to use accessorials that weren’t ordered during booking, and having an incorrect freight class.
Q. How can I avoid billing adjustments?
The primary way to avoid billing adjustments is to verify the contents of your BOL several times throughout the shipping process. Be sure that your shipment’s dimensions are correct (you can use a freight scale to help you if you can find one) and your freight class. Also, be sure to be upfront when booking your shipment if you require accessorials and additional services. A FreightCenter agent will know if the pickup and delivery locations will be big enough for a semi-trailer to fit in; if both areas are too small, make sure you mark your location as a limited-access area.
Three Advantages of Using FreightCenter for Freight Shipping
25+ Years of Service
We have over 25 years of experience, as evidenced by our large network of professional carriers. Our knowledgeable team of shipping experts is ready to help you optimize your shipping experience.
Customizable Shipping Options
Need a liftgate? No problem! Need to ship your products quickly? We got you covered! Our FreightCenter agents can offer tailored solutions for your specific shipping needs while offering affordable rates you can’t find anywhere else.
Friendly Customer Support
Our customer support team has the answers to many of your shipping questions and concerns. We’re here to help you through every step of the shipping process, from initial inquiries to post-shipment issues.
