Carriers

A carrier invoice audit is a process where shipping invoices are reviewed for errors, overcharges, and discrepancies before payment is made. It helps businesses avoid unnecessary shipping costs and ensures accurate billing.

Why Carrier Invoice Auditing Matters:

✔️ Saves businesses 2-5% on shipping costs annually

✔️ Identifies incorrect fees before payments are processed

✔️ Improves shipping data accuracy for future rate negotiations

How FirstMile’s Audit Queue Ensures Billing Accuracy:

🚀 Pre-audit invoices before billing to detect discrepancies

📦 Automatic validation of weight, ZIP codes, and carrier rates

💰 Reduces overcharges through proactive dispute management

Fuel surcharges are extra fees carriers charge to adjust for fluctuating fuel prices. These costs are added on top of the base shipping rate.

How Carriers Calculate Fuel Surcharges:

• Fuel Index-Based Pricing – Rates change weekly based on the U.S. Energy Information Administration (EIA) fuel index.
• Flat-Rate Fuel Charges – Some regional carriers use a fixed percentage surcharge.
• Variable Pricing by Zone – Long-distance shipping incurs higher fuel surcharges.

How FirstMile Helps Reduce Fuel Surcharges:

💰 Optimized Carrier Selection – Chooses lower surcharge carriers

📦 Zone-Skipping & Consolidation – Reduces long-haul fuel costs

🚀 Xparcel Dynamic Routing – Adjusts routes based on fuel cost fluctuations

Carrier discounts are negotiated price reductions on shipping rates, usually offered to high-volume shippers. These discounts lower the base shipping cost and may include additional savings on accessorial fees (e.g., residential delivery, fuel surcharges).

Types of Carrier Discounts:

• Volume Discounts – The more you ship, the lower your per-package cost.
• Negotiated Service Agreements (NSAs) – Custom pricing agreements between businesses and carriers.
• Contract Pricing – Locked-in rates over a specified period.
• Regional & Hybrid Discounts – Lower rates for zone-skipping or alternative last-mile carriers.
• Marketplace Discounts – Some platforms (e.g., Shopify, Amazon) offer pre-negotiated rates with USPS, UPS, or FedEx.

How FirstMile Helps:

FirstMile leverages its multi-carrier network to provide volume-based pricing even for smaller shippers. Unlike single-carrier solutions, we compare multiple shipping options to find the best rates and transit times.