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Freight audit
A freight audit is checking each carrier invoice against what was agreed and what actually happened — the contracted rate, the freight class or weight, the accessorials, and the delivery — before or after paying it. It catches overcharges and duplicate bills, and it has to happen inside the legal time limits for disputing freight charges.
What gets checked
- The rate against the contract or tariff, for the lane and date.
- The class, weight and description against the bill of lading.
- Each accessorial against what was requested and delivered.
- The delivery against the proof of delivery — and that the shipment has not been billed twice.
US federal law describes the government's own version: agencies audit transportation bills — including rates, freight classifications and their combinations — before paying them, and may recover overpayments for 3 years after.
Time limits
| Limit | Where | Time |
|---|---|---|
| Contest a motor carrier's bill | US (49 U.S.C. § 13710) | 180 days from receipt of the bill |
| Sue to recover overcharges | US (49 U.S.C. § 14705) | 18 months from when the claim accrues |
| Government post-payment audit | US federal agencies | 3 years after payment |
| Any claim under the CMR convention | International road carriage | 1 year; 3 years for wilful misconduct |
Worked example: an audited invoice
Suppose a 2,000 lb shipment is billed at class 100, USD 40.00 per 100 lb, when the contract and bill of lading say class 70 at USD 28.00 — with a USD 243 residential charge for a commercial address.
Billed = 20 × 40.00 + 243 = USD 1,043 · Correct = 20 × 28.00 = USD 560 · Overcharge = USD 483Found in month two, it is a correction. Found in month eight, under US law it is past the 180 days to contest the bill.
The mistake people make
Auditing after payment, in a yearly batch. By then many disputes are out of time and the shipment records are hard to find; checking before payment, while the delivery is fresh, is cheaper than recovering money later.
FAQ
Freight audit: common questions
- What is a freight audit?
- Checking carrier invoices against the agreed rates, the bill of lading and the proof of delivery — rate, class, weight, accessorials and duplicates — to catch overcharges before or after payment.
- What is the difference between pre-payment and post-payment audit?
- A pre-payment audit checks each bill before it is paid, so errors are corrected rather than recovered. A post-payment audit reviews paid bills afterwards to claw back overcharges, inside whatever time limits apply.
- How long do I have to dispute a freight invoice?
- In US motor carriage, 180 days from receiving the bill to contest it, and 18 months to sue for overcharges. Under the CMR convention for international road carriage, claims must be brought within 1 year, or 3 for wilful misconduct.
Sources
- 31 U.S.C. § 3726 — Payment for transportation (Cornell LII)
- 49 U.S.C. § 13710 — Additional billing and collecting practices (Cornell LII)
- 49 U.S.C. § 14705 — Limitation on actions (Cornell LII)
- CMR convention — Carriage of Goods by Road Act 1965, Schedule (legislation.gov.uk)
Related terms
On Traqo: Freight Settlement matches each invoice to its LR and POD and raises mismatches as exceptions.