What is a surcharge audit?
A surcharge audit is the systematic checking of all surcharges that carriers and forwarders charge on top of the base rate. For shippers in sea freight, air freight and international road transport, surcharges and accessorials often constitute thirty to fifty percent of the total invoice. At that scale, structural control is not luxury but business hygiene.
The difficulty with surcharges lies in the variety. Fuel surcharge changes monthly according to a formula that differs per carrier. Currency adjustment surcharge is revised at fixed intervals. ECA surcharge applies only to specific shipping areas. Peak season surcharge appears on certain routes during summer peaks. Congestion surcharges arise ad hoc during operational disruptions. Without structured overview it is virtually impossible for your internal team to validate every surcharge on every invoice.
A good surcharge audit does two things at the same time. First, the incidental identification of surcharges incorrectly applied to specific shipments, or whose amount deviates from the agreed formula. Second, building structural monitoring that tests future surcharges immediately and prevents the same errors from repeating.
When is a surcharge audit relevant?
A specific surcharge audit is sensible for shippers where surcharges form a substantial part of total freight cost. This is typically the case for sea and air freight, and for international road transport with many border crossings or fuel-intensive routes. At volumes from half a million euros freight spend per year, the business case for an audit is typically strong.
Furthermore an audit is valuable after periods of increased market disruption or congestion in which new surcharges were introduced. Many clients discover that congestion surcharges added during a peak do not automatically disappear when congestion lifts. An audit brings this type of unintended permanent surcharge to light.
Our approach
For each carrier we map which surcharges they use, which formulas underpin them and what contractual basis they have. This yields a comparable overview per carrier.
We audit every surcharge on every invoice against the contractual basis. Deviations are categorized: overcharged, incorrectly applied, no contractual basis, or correct.
For each disputable case we build a substantiated dispute package. Disputes are formally filed with the relevant carrier in consultation with your team. We follow up until credit note or final resolution.
Based on the baseline we build an ongoing audit cycle that automatically tests all new surcharges each month against the contractual basis. Exceptions get human review.
Each month a report with surcharge trends per carrier and recommendations for contract adjustments that make surcharge formulas more transparent. Part of quarterly review with carriers.
What you get
- Surcharge taxonomy per carrier, comparable and complete
- Historical audit report with categorization per deviation
- Dispute administration with follow-up to credit
- Monthly monitoring with automated testing
- Trend reporting and contract recommendations
- Quarterly review with your team and possibly your carriers
Frequently asked questions
What are the most common surcharges on freight invoices?
The most common surcharges are fuel surcharge (BAF), currency adjustment (CAF), Emission Control Area surcharge (ECA) for specific shipping zones, peak season surcharge during peak periods, congestion surcharges during port congestion, and accessorials such as waiting time, diesel levy and peak surcharge. The sum of these surcharges can amount to thirty to fifty percent of the total invoice.
How do I know which surcharges are contractually justified?
Every surcharge should be substantiated by a contractual formula or a pre-announced general change. An audit therefore always begins with mapping every surcharge against the contract basis. Surcharges without clear substantiation or that deviate from the agreed formula are dispute candidates.
What is the difference with a freight invoice audit?
Freight invoice audit is broader and includes all items on the invoice (base rate, surcharges, accessorials, calculation errors). A surcharge audit focuses specifically on all surcharges above the base rate. For shippers where surcharges form a large part of total cost, a specific surcharge audit is valuable alongside or within a broader invoice audit.
How much can I typically recover on surcharges?
For shippers who have not previously looked at this in a structured way, we typically find between four and eight percent of total surcharge costs as disputable. These are mainly surcharges added without substantiation, incorrectly applied to specific shipments, or whose amount does not match the agreed formula. At volumes from a million euros freight spend this quickly adds up.
How often do surcharges change?
Fuel surcharges are typically adjusted monthly according to a formula. General rate increases (GRI) are often announced quarterly or per season. Special surcharges for congestion or seasonal effects are introduced ad hoc. Ongoing monitoring is therefore more valuable than a one-off audit.
An audit of your surcharges?
Schedule a call where we walk through which period fits in scope and what an audit could deliver for your situation.