What Is Billing and Payment Adjustment in Freight Shipping? GoShip

What Is Billing and Payment Adjustment in Freight Shipping?

Posted on:
Nov 05, 2019

What is a Billing Adjustment?

The billing payment adjustment, otherwise known as rebill, is an added shipment cost that emerges due to discrepancies between the actual and stated shipment information provided by a broker, shipper, or shipping platform.

It is often an unpleasant situation for shippers even though it occurs because they provided inaccurate measurement or unreliable data interpretation.

However, it is worth noting that freight carriers (transportation companies) usually accurately weigh and measure shipments to check if it corresponds with the information provided by shippers. They use advanced, multidimensional measurement tools to get your shipment’s accurate weight and measurement. Hence, errors can be easily detected.

If this happens, there will be extra charges for the shipper. Any inaccurate or incorrect measurement can increase your shipping cost. Furthermore, it can disrupt the transit of the whole shipment.

Where Can You Find a Billing Adjustment?

The first shipping document is the bill of lading (BoL or BL) which is a legal document issued by carriers to shippers that contains information such as the quantity, type, and final destination of the shipment being transported. It also doubles as the shipment receipt after the carrier delivers the shipment to the final destination.

Upon return to the carrier’s terminal, the dock personnel will inspect and weigh each shipment. If there are any inconsistencies in the weight or freight classification on the original bill of lading, the carrier will issue a Weight and Inspection (W&I) certificate to the broker or shipper.

This includes the new bill or cost adjustment (freight charges) added to your invoice, which the broker or shipper has to pay. Besides paying additional charges, this also causes delays or likely damages in transit.

This is why it is key that you accurately document your shipment weight and freight classification before shipping, as it helps you ensure that your freight quote is no different from your final invoice.

Reasons for Billing and Payment Adjustment

You will likely receive a billing adjustment when any of these reasons occur:

  • Freight reclassification
  • Difference in the stated number of goods for shipping
  • Inaccurate dimensions and weight

How to Avoid a Billing Adjustment?

As a shipper, it’s advisable that you avoid the extra cost that comes with the billing adjustment. Below are a few steps you can take to achieve this.

Exact Measurements

The best way to prevent unwanted charges and expenses is by providing accurate shipping information. Ensure that you use ideal, precise tools when measuring your box, crate, or pallet to prevent any mistake.

Not only will getting the exact measurements help you avoid billing adjustments, but it will also help carriers confirm the amount of space required to accommodate your cargo.

After which, they will assign a truck that suits your cargo measurements. On the other hand, an error in measurement by a few inches can significantly increase your overall cost or cause delays in transit.

Accurate Weight

The weight influences the estimation of your freight. For this reason, you need to make sure you mention the exact number of packed load weights. In some cases, like density-based shipping, you also need to point out the dimensional weight, which is different from the traditional weight.

Correct Dimensions

Before shipping via a carrier, ensure that you get the correct measurement of your load. This implies that you must ensure that you accurately measure its dimensions, including the height, width, and length.

Properly Selected Freight Class

In Less Than Truckloads (LTL) freight shipping, the freight class plays a significant role in determining the final shipping cost. If your freight class estimate is incorrect or you provide an invalid freight classification code, the bill adjustment will likely be unfavorable. Nonetheless, you can prevent this by properly defining the class or working with a trusted shipping platform.

Important Freight Shipping Tips

These tips below will help you avoid complications before, during, and after the transportation of your shipment.

Get Fixed Costs From Carriers

After getting your measurements rights, it’s important that you get the fixed cost quote required to transport your cargo from the take-off location to the final location. If you fail to get this information, you might end up overpaying for the service on delivery day.

Temperature Control for Perishables

If you’ll be transporting perishables, ensure you inform the carrier ahead of time because of the temperature control needed to keep them fresh and safe. This will help them put the necessary arrangements in place.

Wrap Your Load Correctly

There’s a high chance that your shipment will get damaged if they are not wrapped correctly. And this can be costly, especially since it is avoidable.

Therefore, you should wrap your load correctly before handing them over to a carrier. For instance, if you use plastic wrap to protect your shipment, you must ensure it covers the product completely, preventing any item from slipping off or slipping out.

However, if you don’t know how to wrap your shipment correctly, you can search the internet or ask your carrier for the best security measures to ensure the safety of your goods.

Take Note of The Delivery Time

You also need to know the truck’s departure and expected arrival time. This will help you monitor the shipment while in transit.

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