< 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

digital supply chain
Blogs
February 27, 2026

Five Key Supply Chain Trends for 2026: Navigating the Road to Transformation

This post is written by our friends at e2open. E2open is the connected supply chain software platform that enables the world’s largest companies to transform the way they make, move, and sell goods and services. Moving as one.™ Learn More: www.e2open.com.   Supply chains are entering a pivotal stretch of highway into the future. It’s a route marked by regulatory detours, geopolitical potholes, and rising expectations for speed, intelligence, and resilience. The journey ahead demands connected data, embedded AI, and agile decision-making. Below are the five major “mile markers” defining the road to supply chain transformation, and how e2open helps organizations navigate the way forward with confidence.   1. Tariff and non‑tariff compliance risks: avoiding costly road hazards Tariff volatility and non‑tariff barriers create regulatory road conditions that can change quickly. For cost-focused leaders, this unpredictability can feel like driving through dense fog. One wrong move can result in delays, penalties, or unplanned expenses. Forward‑thinking organizations are installing automated guardrails: integrated trade compliance systems, dynamic landed‑cost modeling, and synchronized import/export workflows. These tools help reduce blind spots and ensure companies don’t veer into costly territory. The e2open Global Trade suite puts the world’s most comprehensive, continuously updated regulatory content directly…
supply chain
Blogs
August 28, 2025

Why a “Perfect Fit” TMS Beats Feature-Packed Systems

The right match unlocks efficiency, visibility, and cost control—without drowning in unused features Special Guest Blog Post written by e2open   When picking a Transportation Management System (TMS), shiny features, slick dashboards, and buzzwords can be distracting. But here’s the truth: real ROI doesn’t come from having the most bells and whistles. It comes from finding a TMS that fits your transportation complexity like a glove.   Too simple, and you’ll outgrow it before the ink is dry. Too complex, and you’ll be paying for tools you don’t use. Nail the fit, though, and other KPIs like cost savings, faster execution, and happier customers will slide into place.   How to pick a TMS that fits your freight   Carriers and LSPs running on legacy systems miss out on the real-time visibility and cost control a modern TMS delivers, leaving them slower, less efficient, and easier to undercut. Let’s unpack how to look beyond flashy features and choose a TMS that works for your business:   Match complexity first. The biggest ROI driver is aligning your TMS with your transportation complexity. Get that right, and everything else follows.   Consider adaptability and scalability. Your TMS should grow with you. Look…