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What is a Freight Bill?
A Freight Bill sometimes referred to as a Carrier’s Invoice, Freight Invoice, or Bill of Lading Invoice, is an essential document in the trucking industry that summarizes the cost of transportation services. It is a detailed invoice provided by the carrier to the shipper. It includes the particulars of the freight’s movement, including the type of freight, weight, distance travelled, and the costs associated with its transportation. The document details all costs involved, such as fuel charges, accessorial charges, tariff points, and any additional services provided.
The Freight Bill also records important transactional information such as the names and addresses of the shipper and receiver, the date of shipment, a description of the items, and any unique shipment reference numbers. Essentially, it is a comprehensive statement of the shipper’s account details with the carrier for a particular shipment.
If you are looking for Bill Of Lading (BOL) click here.
Importance of a Freight Bill
The Freight Bill is more than just a carrier’s invoice. It serves multiple important purposes:
Record Keeping: The Freight Bill serves as an official record of the transaction between the shipper and the carrier. It documents the terms and conditions agreed upon, the type and volume of goods transported, and the costs incurred.
Billing and Payment: The Freight Bill is the primary document used by carriers to bill shippers for their services. It breaks down the total cost, which helps shippers understand what they’re paying for. It also aids shippers in confirming that they are being charged the agreed-upon rate.
Dispute Resolution: In case of a disagreement or discrepancy between the shipper and carrier, the Freight Bill serves as an important reference document. It provides an itemized breakdown of costs and the specifics of the freight, which can be essential in dispute resolution.
Auditing: Freight Bills are necessary for auditing purposes. They help both carriers and shippers ensure compliance with industry regulations and internal policies.
Understanding the Freight Bill is crucial for anyone involved in the logistics and transportation industry. It’s not just an invoice for services rendered; it’s a vital tool for record-keeping, dispute resolution, and auditing. Ensuring that the Freight Bill is accurate and complete is crucial to maintaining smooth and efficient operations in the trucking industry.
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