Paul D’Arrigo

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…

We are proud to announce that Scott Luton, Founder and CEO of Supply Chain Now, has once again been recognized as the #1 Global Thought Leader and Influencer on Supply Chain for 2025 by Thinkers360—marking his second consecutive year at the very top of this prestigious list. This exceptional distinction reaffirms Scott’s ongoing leadership and influence in the global supply chain arena. Under his dynamic stewardship, Supply Chain Now has grown into an award-winning digital content platform—delivering podcasts, livestreams, webinars, and virtual events that resonate across more than 60 countries. Scott’s voice continues to shape and empower the industry, inspiring professionals worldwide with insights that drive innovation and progress. Learn more here.