Zethu Dlamini

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…

The resiliency of the supply chain has been tested time and time again — strained by weather-related events like hurricanes, global crises such as COVID-19, disasters like the Francis Scott Key Bridge collapse, and security breaches from cyberattacks. Supply chain resilience will continue to be tested. In fact, a major supply chain crisis could be just days away as the International Longshoremen’s Association (ILA) could stage a strike at ports all along the East and Gulf coasts of the United States as soon as Oct. 1. Beyond the Buzz: What is Supply Chain Resilience? “Supply chain resilience refers to the ability of a supply chain to prepare for unexpected events, adapt to disruptions, and recover quickly to restore its normal service levels,” Inbound Logistics said. “It’s not merely about preventing disruptions but being able to turn challenges into opportunities for growth and improvement.” Supply Chain Dive said because of events like COVID-19, the Panama drought, and Houthi attacks in the Red Sea, supply chain disruptions have become “part of the public’s consciousness and everyday nomenclature.” “The risk in our global economy is that supply chain disruptions are guaranteed to continue, but no forecast exists to tell us when or how…