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What Is Billing and Payment Adjustment in Freight Shipping?

What is a billing adjustment?

The billing payment adjustment, or rebill, is an added cost of shipment in case of discrepancies between the actual and stated shipment information. The rebill is usually issued to a broker or shipping platform. This bill adjustment is often an unpleasant surprise for shippers. In many cases, this confusion occurs because of inaccurate measuring, or incorrect data interpretation.

Freight carriers always weigh and measure any shipment to see if it complies with the stated information. And when there’s a mistake, it can result in additional charges and even a disruption of the entire shipment. So, any incomplete or inaccurate measurements can add to your shipping costs.

Where can you find a billing adjustment?

The first shipping document is the bill of lading.  Upon return to the carrier’s terminal, the dock personnel will weigh and inspect each shipment.  Any inconsistencies in the weight or freight classification on the original bill of lading will generate a Weight and Inspection (W&I) Certificate which is available to the shipper and broker.  The carrier will make any cost adjustment to their invoice and pass it on to the party responsible to pay the freight charges.  It is important to accurately document the shipment weight and freight classification prior to shipping to ensure that the freight quote matches the final invoice.

How to avoid a billing adjustment?

Accurate measurements

The best way to prevent unwanted charges and expenses is to provide accurate shipping information. Make sure to use a correct and precise way to measure your box, pallet, or crate. Even a few inches can significantly add to the total cost.

Correct weight

Weight is extremely important while estimating your freight. State the exact number of packed load weight. In some cases like density-based shipping, you will also need to know the dimensional weight apart from the actual one.

Properly chosen freight class

In LTL freight shipping, freight class plays a crucial role in defining the final shipping price. If your estimate is wrong and you provide invalid freight classification code, the bill adjustment can be quite unpleasant. Make sure to define the class properly or work with a reliable shipping platform to avoid mistakes.

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