Freight Settlement

Freight settlement is the full arc from invoice received to invoice paid. It encompasses audit, reconciliation, dispute resolution (if needed), approval, and remittance. A shipment isn't truly settled until the carrier has been paid the correct amount and both parties agree the transaction is closed. Settlement is the financial finish line of every load.

The settlement process starts when the carrier submits their invoice. The shipper – or their freight audit system – validates it against the tendered rate, BOL, and any contracted terms. If everything matches, the invoice is approved and queued for payment. If there's a discrepancy, a dispute is opened, the parties negotiate, and a revised amount is agreed upon. Only then does the invoice clear for payment. The settlement timestamp, amount, and any adjustments are logged for record-keeping and future reference.

Settlement velocity matters. The faster invoices move from receipt to payment, the healthier the shipper-carrier relationship. Carriers track days-to-pay closely, and shippers with slow settlement processes – whether due to manual auditing, approval bottlenecks, or disorganized dispute workflows – earn a reputation that affects rate negotiations and load acceptance. In contrast, shippers who settle invoices quickly and accurately become preferred partners.

The key to fast settlement is removing friction at every stage: automated audit to eliminate manual review of clean invoices, clear escalation paths for disputes, and consolidated payment to simplify remittance. Each step that requires a human to touch the invoice adds days to the cycle.