Billing Dispute / Rate Dispute

A billing dispute – also called a rate dispute – arises when a shipper challenges a carrier's invoice because the charges don't match what was agreed. The dispute might involve the base linehaul rate, an unexpected accessorial charge, a fuel surcharge calculated on the wrong index, or a weight or class discrepancy that changed the rate tier. It's the natural outcome of a freight audit that catches an error.

Disputes follow a predictable pattern. The shipper identifies the discrepancy, documents the correct rate or term – usually referencing the rate confirmation, contract, or tariff – and sends a formal dispute or short-pay notice to the carrier. The carrier reviews, and the two parties negotiate to a resolution. Some disputes are straightforward: a data-entry error on the carrier's side, resolved in a single email. Others – particularly around accessorials like detention or lumper fees – can drag on for weeks if documentation is thin on either side.

The operational cost of disputes often exceeds the dollar amount at stake. Each dispute requires someone to pull up the rate confirmation, compare it to the invoice, draft a communication, and follow up until resolved. For high-volume shippers, unresolved disputes pile up and strain carrier relationships. The best defense is a clean audit trail – rate confirmations stored alongside BOLs and invoices – so that when a discrepancy surfaces, the shipper has immediate, specific evidence to support their position.

Shippers who track dispute frequency by carrier gain leverage in contract negotiations. A carrier with a high dispute rate is either sloppy with billing or testing boundaries – either way, it's a data point that belongs in the next rate review.