Pricing Terms Intermediate

Freight Bill

Also known as: Freight Invoice, Carrier Invoice, Transportation Invoice

Definition

A freight bill is the invoice a carrier sends to the shipper or consignee for transportation services. It details all charges associated with moving a shipment, including base transportation costs, fuel surcharges, and any additional accessorial services.

Freight Bill vs. Bill of Lading

Document Purpose When Issued
Bill of Lading Contract, receipt, title At shipment pickup
Freight Bill Invoice for payment After delivery

The bill of lading describes the shipment; the freight bill charges for moving it.

Freight Bill Components

Basic Information

  • Carrier name and contact
  • Shipper and consignee details
  • Bill of lading number
  • Shipment date and delivery date
  • Payment terms

Charges Breakdown

Charge Type Description
Line haul Base transportation rate
Fuel surcharge Fluctuating fuel cost adjustment
Accessorials Extra services (lift gate, etc.)
Detention Waiting time charges
Reweigh/reclass Adjustments for actual weight/class
Customs/duties International shipment fees

Sample Freight Bill

════════════════════════════════════════════
FREIGHT BILL
Carrier: ABC Trucking Co.
Invoice #: FB-2026-12345
Invoice Date: February 4, 2026
Payment Due: March 6, 2026 (30 days)
────────────────────────────────────────────
Reference:
  BOL #: 987654
  PO #: 456789
  PRO #: 123456789

Shipper: Widget Manufacturing
Origin: Chicago, IL

Consignee: Retail Distribution Inc.
Destination: Dallas, TX
────────────────────────────────────────────
SHIPMENT DETAILS
Weight: 4,500 lbs
Class: 85
Pieces: 4 pallets

CHARGES
  Line Haul (Class 85, 4,500 lbs)    $425.00
  Fuel Surcharge (28.5%)             $121.13
  Lift Gate Delivery                  $75.00
  Inside Delivery                     $95.00
  Delivery Appointment                $25.00
  ─────────────────────────────────────
  TOTAL DUE                         $741.13
════════════════════════════════════════════

Common Freight Bill Charges

Base Transportation

  • Distance-based
  • Weight-based
  • Freight class-based
  • Combination of factors

Fuel Surcharge

  • Percentage of line haul
  • Fluctuates with diesel prices
  • Updated weekly/monthly
  • Currently often 25-35%

Accessorial Charges

Service Typical Cost
Lift gate $50-$100
Inside delivery $75-$150
Residential delivery $50-$100
Limited access $50-$100
Delivery appointment $20-$50
Detention $50-$75/hour
Redelivery $75-$150
Sort and segregate $25-$50

Freight Bill Audit

Why Audit?

  • Billing errors are common (5-15% of invoices)
  • Overcharges happen frequently
  • Duplicate charges occur
  • Wrong rates applied

What to Check

  1. Correct weight and class
  2. Right rates applied (contract vs. tariff)
  3. Accessorials actually provided
  4. No duplicate charges
  5. Fuel surcharge calculated correctly
  6. Addresses match

Common Errors

  • Reweighs without notification
  • Reclassification to higher class
  • Accessorials not requested
  • Wrong contract rates
  • Duplicate invoices

Freight Bill Payment Terms

Standard Terms

  • Net 30 days (most common)
  • Net 15 days
  • Net 45 days

Payment Options

  • Check
  • ACH transfer
  • Credit card (may have fee)
  • Factoring

Late Payment

  • Interest charges
  • Collection actions
  • Credit holds on future shipments
  • Carrier relationship impact

Managing Freight Bills

Organization

  • Match to BOL and PO
  • Log receipt date
  • Track payment deadlines
  • Archive for records

Disputes

  1. Document discrepancy
  2. Contact carrier billing
  3. Provide supporting documents
  4. Request correction or credit
  5. Follow up on resolution

Automation

  • TMS integration
  • EDI invoice receipt (210)
  • Automated audit software
  • Payment automation

Freight Bill Retention

Requirements

  • IRS: 3-7 years
  • DOT: 3 years minimum
  • Best practice: 7 years

What to Keep

  • Original invoice
  • Supporting BOL
  • Delivery receipt
  • Dispute documentation
  • Payment records
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