Using Freight Auditing Companies to Unravel Parcel Shipping Contract Complexities Author: akecskes
May 04, 2011

Parcel shipping contracts are becoming increasingly complex. Many of these contacts are written to confuse shippers and protect the carrier. The wording, created by lawyers, is designed to obfuscate the reader to the point where they simply give up, trust the oral explanation and the promised impact of any proposed freight discounts. It's no wonder so many shippers have engaged freight auditing companies.

Regrettably, most business-to-business contracts--which typically involve many thousands of dollars--are filled with confusing language. Understandably, many shippers--from small-to-medium sized businesses to large enterprises--increasingly rely on freight auditing companies to help them avoid contractual "landmines" and secure as many freight discounts as possible.

When negotiating rates and freight discounts with carriers, things have gotten very complicated. For example, parcel carriers will sometimes use "cell-by-cell" pricing. This pricing model applies to certain zone and weight combinations, and is used to boost per-package carrier profits. Zones are classified as both domestic and international destination regions. As your shipments go further from the origin point the cost will increase. Freight auditing companies can help you fully understand these complex carrier strategies.

Freight auditing companies can also help shippers determine which services most aptly apply to their specific needs. They provide guidance in obtaining freight discounts, and in evaluating the cost-to-value ratio of specific carrier services. They may even help to introduce new carrier services and help reduce shipping costs.

Companies like Lojistic provide comprehensive shipping contract negotiation and analysis services. If you engage in high volume shipping, they can reduce your shipping costs, help you secure freight discounts and improve your distribution practices. Some freight auditing companies employ former carrier employees who bring their experience and expertise to bear on your shipping contract negotiations. These consulting firms provide shipping rate analytics and logistics audit technology to dramatically reduce your small parcel shipping and freight costs.

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