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Things You Should Know About Freight Paying

More and more companies are focused on freight paymentdue to rapidly increasing freight expenditure. The concept of freight payment looks simple but is complex in practice.

Do not let the logistics of international shipping scare you away. Let’s take a closer look at some facts about freight payments suggested by Unishippers:

Outsourcing Freight Payments

Large shippers cost far nominal than small or medium sized shippers, so outsourcing freight payments is a rational solution. The recent need to outsource freight payment to third party logistics has arise due to international complexities in logistics, need of cost saving and need to pay carriers on time

Working of Freight Payment

3PL acts as intermediary between the shipper and invoice payer. Every company is different so payment method could be slighter different but typically invoices are sent directly to freight payment provider by the carriers.

Invoice Validation

On receipt of invoices, ensure validation and audit of each invoice to avoid duplication. These invoices can be sent through mail or email or EDI.

Audit and Payment Automation

Freight audit and payment automation always helps in reducing cost to process a single invoice.

Unishippers provide this facility for its customers by reducing their compliance requirements.

Keep a Check on Duplicate Payments

Accidental duplicate payments can increase shippers transportation expense. Check on overbilling and duplicated payments can save 2 to 8 percent of the freight spend.

Beware of Other Costs

Accessorial costs are often applied after the shipment and hence therefore must not be included in calculation of freight. Keep in mind other common charges like documentation charges and custom examination charges.

Understand Different Shipping Options

It is very important to choose the best shipping option. There is wide range of options available according to your shipping needs.

Consider Different Freights

There is a wide range of international freight services including,

  • International air freight
  • Cross-border freight
  • Ocean freight

Insurance for Freight

Unishippers recommends insurance for freight from UPS Capital to protect important shipments.

Consolidation Of Freight Invoice

No matter what type of shipping one is involved in, consolidation of all the freight invoice into one will reduce the paper work and can prove beneficial and less burdensome for accounting.

Maintain Paperwork Properly

Before paying freight, it is important to check documentation properly. Obtain general understanding of key freight documents like Bill of Lading, shipper’s letter of instructions etc.

Unified Database

Freight payment services such as one provided by Unishippers comprehend data elements from freight invoices and support documentation to create a reporting database.


After completion of process of issue of freight invoice, provider will issue an invoice or request for transportation funds to the shipper. It is preferred to use electronic payment method.

Customer Service

Unishippers asks to employ customer service staff to answer shipper and carrier questions, train users of information systems and provide assistance in reporting needs.

Evaluate Freight Payment Needs

The company needs to recognize the need of evaluating the requirements and lay the groundwork for conducting a bid for services. Involving finance in such decision is important for many host reasons.

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