Dr. Lisa Williams

Blog Post written by Ohad Azgad, CEO of Cinch Logistics leaders must control costs while maintaining service quality, but hidden freight charges often erode profits due to poor visibility. Cinch analyzed over 7,000 line-item charges from 30+ freight forwarders, brokers, and carriers in FMCG and manufacturing, uncovering three major cost drivers: The Frequency-Impact Paradox Frequent charges like fuel surcharges appear in 14.4% of invoices but contribute just 4.2% of hidden costs. In contrast, customs duties—though present in only 5.8% of invoices—account for 52% of hidden costs. Identifying these patterns helps logistics teams focus on impactful cost reductions. Inconsistent Invoice Terminology Charge names like “Fuel Surcharge” vs. “Bunker Adjustment Factor” vary between carriers, reducing cost visibility and negotiation leverage. Standardizing terminology improves tracking, clarity, and vendor negotiations. Hidden Budget Risks: Customs, Duties & On-Carriage Fees Customs duties account for 46% of hidden costs, while on-carriage fees add 26%, despite appearing in only 4.3% of invoices. These charges are often underestimated during quoting, leading to budget overruns. Proactive management prevents unexpected expenses.   Strategies to Optimize Freight Costs Real-Time Data Analytics: Platforms like Cinch provide charge visibility during quoting, improving cost forecasting and negotiation leverage. Standardized Terminology: Consistent charge names enhance cost…

Change is certainly going to come, and a number of developments are expected to impact the supply chain in 2025. That includes the increased adoption of artificial intelligence (AI) and robotics, investment growth in renewable energy, and momentum gains for nearshoring. No matter what happens in 2025, Supply Chain Now will be there every day to serve as the voice of the industry and keep supply chain podcast listeners informed about the big ideas as well as the little changes that could make a big impact. Ongoing Disruptions Are Set to Impact Industry The question isn’t whether there will be supply chain disruptions in 2025. It’s a matter of when, where, and the cause of the disruption. The International Longshoremen’s Association could go on strike again in January if a contract agreement is not reached. The Houthi could stage more attacks on containerships in the Red Sea at any time. And weather-related disasters could range from deadly ice storms to floods to hurricanes anywhere in the country. “Looking ahead to 2025, we can predict some major shifts and challenges for supply chains. Right now, businesses around the world are facing increasing pressure to adapt to new technologies, environmental impacts, and…