What is a three-way match in freight?

Comparing three records before paying: the rate agreed (contract or rate confirmation), proof the goods were delivered (POD), and the carrier's invoice. A difference becomes an exception to resolve rather than a payment.

How long do shippers have to pay carriers?

In the US, 15 days from the day after a freight bill is presented by default, up to 30 calendar days if the carrier's tariff allows. In the EU, 30 days from receipt by default, and no more than 60 unless expressly agreed.

Term

Freight settlement

Freight settlement is the process of approving and paying carriers: matching each freight invoice to the agreed rate, the bill of lading and the proof of delivery, resolving any difference, and paying within the agreed credit period. It turns a delivered shipment into a closed cost — and delays in it are delays in carriers' cash.

Also called freight payment, freight bill settlement, carrier payment, three-way matchUpdated 12 October 2026

The match

Accounts payable calls it a three-way match. The US Government Accountability Office describes it as comparing the ordering document, the receiving report and the invoice. In freight, those are the rate confirmation or contract, the proof of delivery, and the carrier's invoice — with the bill of lading tying them to one shipment.

Payment terms

US motor carriers present freight bills within 7 days — from pickup for prepaid shipments, from delivery for collect ones.
The US default credit period is 15 days, starting the day after the bill is presented; a carrier's tariff can extend it to no more than 30 calendar days.
In the EU, business-to-business invoices are due 30 days after receipt by default, and contracts may not exceed 60 days unless expressly agreed and not grossly unfair.
In practice carriers often wait longer: a 2017 credit-managers' survey reported in the US trade press found an average of 36.9 days.

Worked example: one bill through the match

Suppose a rate confirmation of USD 1,500 for a load, plus detention approved at USD 75 an hour. The POD shows delivery with 1 hour of detention and 2 cartons damaged. The invoice arrives for USD 1,650.

Expected = 1,500 + 1 × 75 = USD 1,575 · Invoiced = USD 1,650 · Difference = USD 75 (2 hours of detention billed, 1 recorded)

Pay USD 1,575 and raise the USD 75 as an exception; the damaged cartons go to a separate claim, not a deduction.

The mistake people make

Holding invoices while waiting for paperwork. Settlement can only move as fast as its slowest document — usually the POD — so capturing it on the day of delivery decides whether a bill clears inside the credit period or lands in a dispute queue.

FAQ