Freight Audit
Freight audit is the process of systematically reviewing carrier freight invoices against contracted rates, accessorial charges, and shipment details to identify billing errors before or after payment.
What Is Freight Audit?
Freight audit is the process of systematically reviewing carrier freight invoices against contracted rates, accessorial charges, and shipment details to identify billing errors before or after payment.
How Does Freight Audit Work?
A freight audit compares each line item on a carrier invoice, base rate, fuel surcharge, accessorials, and applicable discounts, against the shipper's rate agreements and the actual shipment data (weight, dimensions, service level, delivery confirmation). Discrepancies are flagged for dispute or correction, and audits can be performed manually, through freight audit and payment (FAP) software, or by a third-party audit provider.
Common Errors Found in Freight Audits
- Incorrect base rate applied
- Duplicate billing
- Unjustified or incorrect accessorial charges
- Wrong weight or freight class used
- Fuel surcharge miscalculations
Why Freight Audit Matters
Freight billing errors are common, and without a systematic audit process, those errors go uncaught and directly erode margin. Regular freight audits recover overcharges and also surface patterns that inform better carrier negotiations.
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