What Is a Rebill and How Do I Avoid It?

Imagine you’re managing a critical LTL shipment for your brewery. You’ve got a $500 freight quote for a pickup delivery and everything seems to be going according to plan. Your freight carrier picks up your cargo and takes it to its destination, straight from the loading dock. But when the final invoice arrives, you’re billed significantly higher than the initially agreed-upon cost.

In your hands is a freight rebill, a common yet often unexpected reality of beverage logistics. Keep reading to learn more about what exactly rebills are, why they happen, and how you can make sure you’ll never experience them. Keep your logistics smooth and cost-effective with our help!

So, What Is a Rebill Exactly?

Rebills, or billing adjustments, happen when carriers add extra charges or provide additional services on top of your freight quotes. Shipping and delivery costs can differ from the original invoice for various reasons—maybe your cargo has the wrong freight class, or there were delays during your delivery appointment, or special requirements like a lift-gate was needed to load or offload your cargo.

This also includes a problem where breweries are increasingly classified as limited access locations. It refers to areas where pickup or delivery is restricted, such as off-route locations or farming areas that rarely see commercial traffic. An extra charge can be accrued for this type of delivery.

Freight carriers automatically check shipments to determine which cargo requires a rebill. However, billing practices vary depending on the freight carrier if a rebill is required. Whether you are informed about the new cost upfront or only when the invoice is delivered can depend on the terms and conditions set by the carrier and the agreements in place.

6 Tips to Avoid Freight Rebills

If you want to be a successful brew master, you need to make sure that the money you invest works for you. Avoid increased rebill shipment fees with just a few tips:

Precision in Cargo Reporting

The key to avoiding rebills is in the meticulous documentation of your shipment details. It’s all about getting the small things right – accurately noting the weight, nature, size, and any specific handling needs of your freight. Minor errors can lead to significant cost variances.

• Tip the Scales in Your Favor: Just as scales can vary, so can the weight of your shipment if not measured correctly. Avoid estimating and use a commercial scale for precise weight measurements. Keep in mind that packaging contributes to the overall weight, so weigh your freight after it’s fully packed and ready to go.

• A Tape Measure Goes a Long Way: Don’t underestimate the power of accurate measurement. An inexpensive tape measure can be the difference between an accurate quote and an unexpected rebill. Measure each dimension of your shipment carefully, as carriers will measure thoroughly on their end too. Maintaining detailed records of these measurements can be a lifesaver in resolving any disputes.

Demystifying Your Shipping Terms

Being savvy about your shipping terms and classification can empower you to make better decisions and potentially save money.

• Decode Your Freight Class: Shipping rates vary greatly based on freight classification, ranging from 50 to 500 as per the National Motor Freight Classification (NMFC) guidelines. The denser and easier to handle the shipment, the lower the freight class and cost. Conversely, bulkier shipments needing special care fall into higher classes. Utilizing resources like ClassIT for accurate classification can be crucial in getting your shipping rates right.

• Know the Delivery Destination: Special locations often come with added costs. Understanding the specifics of your delivery site, be it retail delivery location, commercial space, or private property (such as a festival site), can help you anticipate rebilling charges. 

Fostering Strong Partnerships in Logistics

Building a solid relationship with your logistics provider is more than just business; it’s about creating a partnership that understands and adapts to your unique shipping needs.

• Pre-plan for Special Shipping Needs: If your shipment requires extra services like liftgate assistance, communicate this upfront. Unexpected needs can lead to additional charges, including costs for rescheduling pickups or deliveries if the right equipment isn’t available on the first try.

• Pay Attention to the Details: The devil is in the details, especially when it comes to shipping documents. The accuracy of your Bill of Lading (BOL) and Proof of Delivery (POD) is paramount. Avoid making changes to these documents once the shipment is in transit, as alterations can lead to rebilling fees.

Take Control of Your Freight Costs with Brew Movers

Rebills can be a thorn in the side of any business in the beverage industry. By understanding what causes freight rebills and how to avoid them, you can expect smoother, more predictable logistics operations. 

At Brew Movers, we hold regular meetings, practice transparent communication, and share feedback with our partners to guarantee a seamless shipping process. We offer a network of support that can help your company effectively navigate the complexities of shipping logistics. Experience a more efficient, cost-effective shipping process without unexpected rebills with our help.

If you need expert assistance or want to learn more about navigating the complexities of beverage logistics, don’t hesitate to contact us today!