3 Strategies to Help You Reduce & Refute Reclass Fees

Facebook
Twitter
LinkedIn
Print
Email

Like parcel and air freight carriers, LTLs are looking less at what you’re shipping and more at how big it is. Space is the name of the game, and carriers are doing everything they can to make sure they’re getting paid for the amount that’s being used on their trailers. This includes employing automated dimensioning technologies, which according to some carriers, are enabling them to verify DIM-weight on between 40% and 60% of the shipments they carry – much more than was possible in years past.

As you can imagine, all this measuring has allowed carriers to identify and recover revenue on more misclassed freight – unfortunately at the expense of shippers. Thankfully, there are a few simple steps shippers can take to avoid these re-class fees and/or refute these charges when they do occur.

First Up, Think Like a Carrier

Although dimensioners are helping carriers identify a lot more misclassed freight, due to time constraints and tight shipping windows, they’re still not able to check all the shipments that hit their docks. This means they’re still using traditional inspection techniques to spot-check shipments that display certain red flags – red flags like oversized and irregular-shaped freight, shipments with protruding edges, and shipments that seem grossly under-weighed or mismeasured.

We suggest taking a close look at the kinds of freight you ship. If any of your shipments fit the above descriptions, pay special attention to the measurements and weight you collect on those goods.

Measure and Weigh Everything

While thinking like a carrier is a good place to start, measuring and weighing everything is where you ultimately want to end up. If you’re only shipping a handful of pallets each day, this should be easy. Just hang a tape measure near your floor scale so your staff can quickly measure pallets while they’re being weighed – and don’t forget to take a photo or two of your shipments to document their condition.

Alternatively, high-volume shippers may want to invest in automated dimensioning equipment of their own to keep up with demand. A pallet dimensioner like our FS 5000 measures freight in just a few seconds, enabling busy warehouses and distribution centers to fully process (measure, weigh and photograph) between 6 and 10 pallets per minute. When you no longer have to worry over reclassification fees, freight audits and the administrative costs needed to service them, these units can pay for themselves within just a few months.

Contest Quickly and Provide Documentation

Even if you implement the suggestions above, you’re still likely receive the occasional freight reclassification fee. The best thing to do when this happens is to contest the claim quickly and provide proper documentation. Contesting quickly reduces the odds of things getting lost in the shuffle on your end and usually results in quicker resolution of the bill.

As for proper documentation, be sure to provide the carrier with your original purchase order or invoice, photos of your shipment, a record of the dimensions and weight, and a certificate showing that your scale has been calibrated within the last six months. Again, an automated dimensioner like our FS 5000 makes this process easier by allowing you to quickly generate and share freight reports containing all the above information related to any shipment.

 

For more articles like this, subscribe to our newsletter!

Was this article helpful?

Michael Eichenberg is the co-founder and CEO of FreightSnap, allowing the supply chain, logistics, manufacturing, distribution and transportation industries to measure, weigh, photograph and ID pallets and parcels in just seconds. Learn more and share your ideas on Facebook and LinkedIn.

Subscribe to our Blog

Stay up to date with our latest news, receive exclusive deals, and more.

2023 Newsletter Subscription Contact Form

Subscribe to Our Blog

Stay up to date with our latest news, receive exclusive deals, and more.

Liquidity Services is a global company that provides surplus management services to its clients. They refer to themselves as “Reverse Logistics” because they help companies by providing a cash market for surplus inventories. One of the most substantial challenges for the company was handling a massive inflow of inventories. There...

We all know things were different before COVID-19. Our lives, our businesses, and even the economy were disrupted by the pandemic, and it made us adapt to what many call a “new reality”. This new reality means that globally, businesses need to navigate disruptions in the supply chain and labor...

LTL shipping can be an efficient way to move freight when it doesn’t make sense to ship a full truckload. But, it’s easy to lose money on costly mistakes if you’re not careful. If you want to see what you might be doing wrong, and avoid potential pitfalls, take a...

The Importance of Calculating Dimensional Weight With major package and less-than-truckload carriers like FedEx, UPS, YRC Freight, Old Dominion Freight Line, Estes Express Lines and others making use of dimensional weight pricing, it’s become more important for shippers to learn how to calculate the dimensional weight of their large freight...

In the rapid world of logistics and freight management, identifying leaders in innovation is crucial. Enter FreightSnap, your solution to warehouse automation and optimization. The FreightSnap Image Station, a groundbreaking development in automated freight documentation, is redefining the game for shippers and carriers. Join us on an exciting journey as...

In the fast-paced, fiercely competitive logistics industry, the demand for warehouse automation is more pronounced than ever....

Wasted space means wasted money. As a warehouse manager, improper pallet sizes can rob you of valuable storage capacity, limiting inventory volumes and operational efficiency. But with some strategic planning, you can optimize your pallet dimensions to maximize usable cubic space. Here at FreightSnap, we help companies right-size their pallets...

Subscribe to our Blog

Stay up to date with our latest news, receive exclusive deals, and more.

Shippers are always looking for new ways to save money and cut unnecessary expenditures. And one way to do so is by making the most cost effective and practical choice when it comes to shipping their goods. But, with the lines between parcel and traditional less-than-truckload carriers blurring, the decision...

Let’s Talk About Drop Shipping In traditional ecommerce businesses, the order fulfillment process involves companies receiving customer orders and shipping the products from inventory they have in stock. This includes picking, packaging, and sending out the order to the customer. Obviously, this method of supply chain management requires significant overhead...

The Importance of Dimensioning Systems In the world of shipping, unexpected costs can quickly spiral out of control, putting a significant dent in your profits. One common source of these unforeseen charges is freight reclassification. But what if there was a way to drastically reduce these costs and improve your...

What is Reverse Logistics? Reverse logistics is the process of planning and controlling the flow of goods from the end consumer back to the point of origin – typically the retailer, or even the original manufacturer. Having a well-thought-out, well-implemented process for handling the reverse flow of goods (returned items)...

In the rapid world of logistics and freight management, identifying leaders in innovation is crucial. Enter FreightSnap, your solution to warehouse automation and optimization. The FreightSnap Image Station, a groundbreaking development in automated freight documentation, is redefining the game for shippers and carriers. Join us on an exciting journey as...

In the fast-paced, fiercely competitive logistics industry, the demand for warehouse automation is more pronounced than ever....

Wasted space means wasted money. As a warehouse manager, improper pallet sizes can rob you of valuable storage capacity, limiting inventory volumes and operational efficiency. But with some strategic planning, you can optimize your pallet dimensions to maximize usable cubic space. Here at FreightSnap, we help companies right-size their pallets...

Product Sheet - FS Parcel Dimensioner

2023 DimReimag LP - FSParcel PS Dwnld

Product Sheet - FS 5000 Dimensioner

2023 DimReimag LP - FS500 PS Dwnld

Request a Quote!

2023 DimReimag LP Pricing Request Form