Freight Charges from the Ground Up
Freight charges come in all shapes and sizes. A freight bill is different from a bill of lading. A bill of lading is the contract between the person that wants to move the shipment and the carrier. In our system, we are not the individual that handles the movement of the shipment.
We only help the transaction by producing a document. It’s a document that gives the carrier the instructions on what it is they’re supposed to be moving.
The carrier bill, in comparison, is the document that we receive on behalf of the broker. Or it can be from whoever incurred those charges. So that way, we’re able to report back on what’s billed to them. Again, the bill of lading is the instructions or the contract for the carrier. The freight bill is what the carrier is charging for that service.
A big freight charge that comes to mind that you can recover is definitely related to guarantees. A guarantee is where our broker or the customer has a very strict rule for the delivery of the freight. When that delivery time isn’t met, then it means that there’s a breach of contract. At that point, they failed to deliver on the service. Our customer then has an opportunity to recover those charges. Part of this is going to be on the broker’s end. They make sure to have the documentation that helps recover those charges.
It would be helpful if there are any emails or other types of correspondence from the carrier. They definitely need to keep that information. In fact, our system allows our broker or our customer to store that documentation. It will have a direct link into the shipment. That way, that record is there to help with the recovery of those charges.
Freight Charges from Different Shipping Companies
Different shipping companies do have different types of freight charges. What comes to mind is what the shipping company specializes in. An example of a charge would be a trade show fee that incurs when you deliver to a trade show. There are some carriers that will not provide that service. It’s not something that they’ll do. They don’t want to wait around for the delivery. Other carriers will, so they know that they can charge a premium rate. This is all because other carriers in that area are not charging that or providing that service. That’s one example of a difference in freight charge.
There are other differences that also relates to the specialization of freight delivery. An example is delivering to a mine. That requires a driver that’s confident or competent to deliver to that area. Again, one carrier may offer that service, and another may not. So that carrier can charge a premium rate. That is because the service isn’t available everywhere.