< Back to Blogs
Share:

Navigating Hidden Freight Costs: Taking Control of Unexpected Charges

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 control and tracking.
  • Operational Optimization: Regular audits of handling, cargo, and last-mile delivery fees help eliminate unnecessary expenses.


Ohad Azgad is the CEO of Cinch, a platform that empowers logistics leaders by providing real-time spend visibility to prevent profit erosion, reducing manual data entry, and unlocking actionable insights into logistics spend to improve decision making. Cinch seamlessly integrates with existing systems with minimal IT involvement, making it easy for teams to get up and running without disrupting current workflows.

More Blogs

fulfillment automation
Blogs
February 20, 2026

Designing Resilience In: David Scheffrahn of Ocado Intelligent Automation on Flexibility, Volatility, and the Future of Fulfillment

From Grocery Innovator to Global Tech Enabler At Manifest 2026, Scott Luton spent time with David Scheffrahn, Vice President of Sales with Ocado Intelligent Automation, to explore how fulfillment technology is evolving in an era defined by volatility. While Ocado is widely known in the UK and Europe for its e-commerce grocery leadership, Scheffrahn explained that the company’s North American focus is different. Over 25 years of building its own advanced grocery e-commerce and fulfillment operations, Ocado developed a powerful technology stack to drive efficiency. “What we’ve done in the last five years,” he shared, “has taken the tech stack that we built for our own use, and now we’re offering it to other companies to buy and use for their operations.” Today, Ocado supports 3PLs and global brands with end-to-end automation solutions that enable companies to maintain greater control over their omnichannel fulfillment, especially those looking for alternatives to marketplace giants.   Volatility Hasn’t Gone Away When asked about dominant supply chain themes heading into 2026, Scheffrahn was direct: “Volatility has not gone away.” He described 2025 as “a massive shock in the system,” with tariffs and shifting trade policies forcing customers to pause projects and reassess strategy. “Almost…
supply chain planning
Blogs
January 7, 2026

ToolsGroup CEO Sean Elliott on Embracing Uncertainty, Probabilistic Planning, and Preparing for an Agentic Future

At the Gartner Supply Chain Planning Summit in Denver, Scott Luton sat down with Sean Elliott, CEO of ToolsGroup, to discuss why uncertainty is no longer something supply chain leaders should fear—and how the right technology can turn volatility into advantage. Elliott brings decades of experience across supply chain execution and planning, a background that shapes his pragmatic leadership philosophy. As he noted, bad plans can cripple even the best execution environments, just as poor execution can undermine well-crafted plans. ToolsGroup’s mission sits squarely at that intersection.   What Makes ToolsGroup Different Elliott described ToolsGroup as one of the few truly probabilistic planning providers in the market. While many vendors claim probabilistic capabilities, most stop at probabilistic forecasting. ToolsGroup goes further by embedding probabilistic thinking across the full breadth of its planning technology. The company’s belief is simple but powerful: uncertainty is not the enemy—it’s an asset. Rather than chasing forecast accuracy for its own sake, ToolsGroup focuses on business outcomes. What planning organizations really care about, Elliott argued, is having the right inventory in the right place at the right time to satisfy customers. Customer satisfaction—driven by availability, pricing, and service—is the ultimate goal. Probabilistic planning enables organizations to…