Freight and Package Transportation Business Guide
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All 17 Documented Cases
Unrecovered Freight Overcharges
3–8% of total freight spend annually; typical range AUD $300,000–$800,000 for mid-market Australian logistics operators; recovery rates: 60–80% post-audit vs. ~100% pre-auditFreight carriers systematically overcharge invoices through: (1) rate mismatches against contracted terms, (2) invalid accessorial charges not covered by contracts, (3) weight/dimension billing errors, (4) duplicate charges, (5) currency or fuel surcharge uplifts applied incorrectly, (6) unauthorized contract extensions. Post-audit recovery attempts recover only 60–80% versus 100% for pre-audit prevention.
Unrecovered Detention and Dwell Time Costs
Estimated: AUD 5–15% of transport revenue per annum (unbilled detention); AUD 8,000–25,000 per driver annually in unrecovered detention hours; typical transport margin loss AUD 50,000–200,000+ annually for fleet of 20–50 drivers.Search results reference detention/dwell as a distinct pay component. Owner-driver guideline rates show both hourly and per-kilometre rates, implying mixed-mode billing. Manual timesheets frequently miss or underreport detention events, especially at customer sites. This creates dual losses: drivers owed unpaid detention wages (Fair Work exposure) and customers not invoiced for service delays.
Unreasonable Detention and Demurrage Charges Assessment
AUD $100–250+ per container per day. A typical importer with 10 containers delayed 5 days beyond free time faces AUD $5,000–12,500 in avoidable charges.The Australian Competition and Consumer Commission (ACCC) identified that cargo owners need greater protection against unreasonable detention fee practices. Demurrage is charged when full containers remain at port beyond free time (typically 5–20 days). Detention is charged when empty containers are not returned within free time. The starting date for charge calculation varies by carrier and location, and even small differences (e.g., counting from vessel arrival vs. discharge completion, which can span 2–7 days) significantly impact final bills. Shipping lines control the trigger date definition, creating asymmetric leverage and systematic overcharges.
COD Cash Shrinkage & Reconciliation Discrepancies
Average 0.5–2% monthly COD cash shrinkage (industry estimate). Mid-size operator: AUD $200,000/month COD × 1.5% = AUD $3,000/month = AUD $36,000/year. Labor cost of investigation/spot checks: 5 hours/week × AUD $50/hour × 50 weeks = AUD $12,500/year. Total: AUD $48,500/year.Manual COD reconciliation involves counting cash, comparing to receipts, and investigating discrepancies. Large daily transaction volumes (50–500+ collections/day) make real-time verification impossible. Discrepancies attributed to 'human error' are often unresolved, creating opportunity for fraud.