What is the process of Freight Billing?
A freight bill, or a bill of lading (BOL), is a legal contract between the shipper and the carrier and includes all of the necessary details of the transportation transaction and is typically signed by the shipper and the carrier.
This document is used by the accounting personnel as a means to justify billing the shipper or the receiver, depending on the terms of the contract, for the successful delivery of the freight.
The BOL contains detailed information including the name and contact information for the shipper (consignor) and the receiver (consignee) as well as a description of the freight which includes the quantity and type of commodity. The BOL also contains estimated times for the pick-up reservation and delivery deadline along with payment method information and associated shipping fees and taxes.
Once the delivery is complete, an invoice is issued to the shipper or billing party, to be paid. These invoices contain information to be validated which includes:
- Consignor and consignee names
- Shipment date
- Pickup and Dropoff locations
- Shipment description (quantity, weight, dimensions, etc.).
- Summary of charges and rates.
What are Accessorial Charges on LTL shipments?
After the shipment has been delivered, the carrier who handled your shipment will submit an invoice for services rendered with a total that may exceed the originally agreed upon rate.
There are many factors that can lead to an increased invoice. Fortunately, there are also ways to avoid these accessorial charges by asking yourself the following questions ahead of time and communicating these answers to your Gold Coast Logistics sales representative.
Types of Insurable Items:
- Has the shipment been accurately classed and weighed?
- Has the shipment been properly packaged and labeled?
- Are there any special requirements needed before shipping?
- Is there a loading dock at the destination or will a liftgate be required?
- Will this shipment require an inside delivery?
- Is this a residential delivery?
- Is this a direct delivery to the consumer?
- Is the contact and address for delivery, correct?
- Is an appointment needed for delivery?
This validation creates a vital step in the freight billing process: the freight billing audit.
– A crucial part of the freight billing process is auditing and validating. Invoices received at the end of a shipment need to be validated to ensure it’s not a duplicate or something that has already been paid. Invoices also need to be verified that they are the right invoice for the right shipper and all the proper documentation is correct, including information from the original Bill of Lading (BOL).
– Typically, an invoice should reflect the original quoted freight rate on the BOL. However, a freight bill audit is useful and necessary to ensure there are no discrepancies in your invoice. These variances may arise for several reasons, namely:
- Fluctuations in freight rates due to market factors
- Clerical errors
- Discrepancies in how rates were quoted/billed
- Incorrect commodity classifications
- Mistaken accessorial charges
- Duplicate payments
- Damaged shipments (Claims)
Gold Coast Logistics has the means and expertise to successfully audit a freight bill. There’s also great cost-benefits to partnering with CGL, as we specialize in freight billing, validating information and maintaining awareness and transparency when something shipping-related could impact your invoice. Partnering with Gold Coast Logistics will give you more time to focus on running your business and developing your product!
What may be considered Loss and/or Damage?
In order for a loss and/ or damage claim to be considered for recovery under the applicable Policy of Insurance, the following must be present:
1. The nature of the damage/ loss must be physical:
- Theft, non-delivery, rough handling and exposure to moisture are examples of physical damage/ loss.
- Loss of Market of Delay during transport are not physical losses.
2. Damage / loss must be external:
- Damage / loss caused by an inherent vice of the cargo would not come under the scope of a typical cargo policy.
- Internally caused loss usually involves food stuffs which over-ripen or go bad due to their nature rather than an external cause.
3. Non-Delivery/ Shortage of Goods:
- Promptly notify all concerned parties that the goods have not been received and request that the goods be traced.
- If approved, our policy states that the material must be lost/missing for 180 days before the insurance will issue a refund.
4. Concealed Damage:
- When loss or damage is not discovered until the shipment has been completely unpacked or opened, a written claim must be filed against the carrier for loss or damage within strict time limits. This notification must be within 5 days from the date of delivery of the shipment. By failing to do so, the carrier is effectively relieved of liability for the damage or loss.
**For concealed carrier claims, carriers are not required to pay for concealed damage. If denied, we will request for them to at least pay out 1/3rd of the claimed amount.
**For concealed Cargo Cover claims, it is highly suggested that explicit details are provided as to why it was concealed, why the POD was signed clear, etc.
Assess whether a true total damage / loss of product, or is the product repairable?
What to do notified of Loss or Damage?
1. Prompt Notification of the Loss or Damage
- Upon discovery of the loss or damage, you must immediately notify Gold Coast Logistics.
2. Submit Required Claim Documents and Information
Please include ALL of the following documents, including, but not limited to:
- Detailed claim statement
- Pre-loading Photos (if none are available, please note “no pre-loading photos available”)
- Photographs of any damaged items (including packaging materials and packaging techniques used). We must have pictures of the whole item, plus close-up pictures of any damaged regions on the item.
- Commercial Invoice
- Packing List
- Evidence of Insurance
- Repair Statement
- If not available for repair, a statement of non-repairability on company letterhead or by a 3rd party (3rd party must also be on their letterhead)
Salvage/Scrapping value
Replacement part / material information. Replacement invoice and replacement PRO/BOL
Other
- If not available for repair, a statement of non-repairability on company letterhead or by a 3rd party (3rd party must also be on their letterhead)
*The claim request will be rejected if any required documentation or information is excluded.