Search suggestions
  • ph meter
  • balance
  • conductivity
  • counting platform scale
  • ind570
All Categories
  • All Categories
  • Products
  • Buy Online
  • Support
  • Expertise
  • Events & Webinars
  • Other
Filter

Protect Against Costly Back Charges When Shipping Freight

Stay Informed of Dimensional Pricing Models to Minimize These Unexpected Charges

Home Expertise Library Stories Protect Against Costly Back Charges When Shipping Freight
mins
7 May, 2025

In today's fast-paced logistics environment, back charges due to incorrectly classified shipments can significantly impact your bottom line. Understanding and managing these costs is crucial for financial health and operational efficiency. This article explores the importance of maintaining thorough audit records and effective strategies for preventing these costly back charges. This is particularly important for warehouses and distribution centers as dimensional pricing models become the norm.

Protect Against Costly Back Charges When Shipping Freight

The Importance of Audit Records

Audit records are your first line of defense against back charges. By keeping detailed and accurate documentation of all transactions, shipments, and communications, you can:

  • Identify Discrepancies: Thorough records allow you to quickly identify and dispute unexpected charges. 
  • Support Claims: In the event of a dispute, having comprehensive records helps to substantiate your claims and minimizes financial losses. 
  • Enhance Compliance: Proper documentation ensures compliance with industry regulations and freight contracts, reducing the likelihood of penalties.

Utilize equipment that can automatically capture legal-for-trade dimensional and weight data for your records to eliminate these issues.

How Warehouses and Distribution Centers (DCs) Can Protect Against Back Charges

How Warehouses and Distribution Centers (DCs) Can Protect Against Back Charges

So how exactly can your DC prepare for dimensional pricing models? 

  • Efficient Handling: Streamlining operations with automated freight dimensioning, weighing, and scanning systems can improve data accuracy and reduce the likelihood of manual errors that lead to back charges.
  • Legal-For-Trade Certification: Using equipment that is certified legal-for-trade ensures that your measurements are correct and can provide an audit trail if there is ever a discrepancy with a freight carrier. 
  • Collaborative Relationships: Maintaining strong relationships with carriers and suppliers can help negotiate better terms and clarify responsibilities, minimizing misunderstandings. When all operations utilize automated measuring and weighing devices, the likelihood of disputes lowers drastically.

Freight and LTL Increased Revenue Recovery Opportunities

On the other side, freight and LTL carriers can use dimensioning systems to assist in revenue recovery efforts.

Revenue recovery comes into play when carriers receive shipments that are incorrectly billed or labeled. If they have a shipment that is larger than declared, this can impact load planning efforts and transport costs. To mitigate these costs, carriers can use legal-for-trade dimensioners to verify shipment measurements and then go back to the shipper with the data if there are any discrepancies. 


Dimensioning System TLD970, HR, No FP

TLD970 Dynamic Pallet Dimensioner

The TLD970 Pallet Dimensioner dynamically measures 100% of pallets in motion to keep efficiency at its peak. Boost pallet handling productivity by up to 70%. Integration into your operations is so seamless, you won’t even know the system is there.
TLD870 Static Pallet Dimensioner

TLD870 Static Pallet Dimensioner

The TLD870 combines best-in-class dimensioning performance with the fastest measuring times to offer an efficient, robust solution for pallet revenue recovery, costing, invoicing, and load planning.
Forklift Scale TLF820 ETO

TLF820 Forklift Scale

TLF820 forklift scales increase productivity with one-step weighing and seamless integration into the logistic process. Designed for tough industrial environments, they set the standard for reliability, safety, and accuracy in heavy-use applications.
Data Capture Software - Thumbnail

Data Capture Software

OCTO™ DataCapture Software collects dimensioner, scale and barcode reader data to store, merge and share with the host system.
Solutions for Freight Weighing and Dimensioning

Solutions for Freight Weighing and Dimensioning

Download the Freight Solutions Guide to learn how you can improve your end-to-end process visibility and optimize your operational efficiency.

What are back charges, and why do they occur?

Back charges are costs imposed by a carrier or supplier due to discrepancies in shipping terms, miscommunications, or errors in billing. They often arise from shipping errors, missed deadlines, or damages.

How can I effectively manage audit records?

Implement a robust documentation system that logs every shipment detail, communication, and transaction and utilizes legal-for-trade equipment with certified data.

If I’m located in the US, what should I do to prepare for the NMFC dimensional pricing changes?

Start by reviewing your current shipping practices, understanding the new classifications, and optimizing your shipments to reduce costs. Reach out to one of our experts to help you determine the best measurement solutions.

How can Distribution Centers help reduce back charges?

DCs can improve inventory management, ensure accurate shipping processes, and maintain strong partnerships with carriers, which can all help mitigate back charges.