How a contingency freight audit works (and what to ask before you sign)
A contingency freight audit means the auditor is paid only if money is recovered. There is no upfront bill for the review itself. This guide explains how that works, where the details matter, and what to ask any auditor before you agree.
How it works
- You send carrier invoices and the documents that show what you agreed to pay, such as a rate agreement or quote.
- The auditor checks each invoice against those terms and lists the charges that look wrong.
- You review the findings. Claims go to the carrier only with your approval.
- If the carrier refunds or credits money, the auditor takes an agreed share of the amount recovered.
- If nothing is recovered, you owe nothing.
Why companies choose it
- No upfront cost and no payment unless money comes back.
- You do not need to hire or train someone to read carrier invoices.
- The auditor is paid for results, so it has a reason to find real errors and not pad the report.
Where the details matter
Contingency deals are not all alike. Two offers with the same percentage can cost very different amounts, depending on the terms below.
| Term | Why it matters |
|---|---|
| What the percentage is applied to | Recovered amount before tax, after tax, or total savings. Before-tax is the cleanest, because tax adjusts on its own. |
| What counts as a recovery | Cash refunds, credits on your next invoice, or both. Make sure a credit you never use does not count. |
| Ongoing fees | Some agreements take a share of future savings for months or years. Ask whether the fee applies only to money actually recovered. |
| Contract length and exit | Can you stop at any time? Is there a minimum term? |
| Who talks to your carrier | You should approve claims first and know who is contacting your carrier on your behalf. |
| Your data | Is there a confidentiality agreement before you send anything? What happens to your files afterwards? |
| Other charges | Setup fees, reporting fees, or minimums turn "no cost" into a cost. |
Questions to ask any auditor
- What percentage do you charge, and on what exactly?
- Do you charge anything if nothing is recovered?
- Can I review every claim before it goes to the carrier?
- What do you need from me, and how long does a review take?
- Will you sign a confidentiality agreement first?
- Can I cancel at any time?
- Can I see the terms in writing before I send anything?
Is a contingency audit right for you?
It suits companies that ship regularly, pay carrier invoices without checking each line, and have an agreed rate or quote to check against. It is less useful if you have very few shipments or no agreed rates, because there is little to compare against. An honest auditor will tell you that after looking at a sample.
How Maritime Freight Review does it
- The first review of up to 10 invoices is free.
- If money is recovered, the fee is 35% of the recovered amount before tax.
- If nothing is recovered, you pay nothing.
- A confidentiality agreement is signed before you send any documents.
- You see every claim before anything goes to your carrier.
I do not promise a result in advance, because it depends on your carriers, your volume and what your invoices show.
Common questions
What does contingency mean in a freight audit?
It means the auditor is paid only from money recovered for you. If nothing is recovered, you pay nothing for the review.
What percentage do contingency freight auditors charge?
It varies by firm and by contract. Always ask what the percentage applies to and get the terms in writing.
Do I pay if no overcharges are found?
Not under a true contingency arrangement, but check for setup fees, reporting fees or minimums.
Do I need to give up my carrier relationship?
No. You approve claims first, and you decide how and whether your carrier is contacted.
Send about 10 recent freight invoices and your rate sheet. The first review is free, and you pay only a share of money actually recovered.
Request a free review