Freight and routing compliance

Freight and Routing Deductions Explained

A routing guide is a retailer's own rulebook for getting freight to it: which carrier and facility to use, how to request routing, and what freight terms apply (see the routing guide glossary entry). A routing-guide violation is a miss against that rulebook, not against quantity.

What counts as a freight or routing-guide violation?

A routing guide is a retailer's own rulebook for getting freight to it: which carrier and facility to use, how to request routing, and what freight terms apply (see the routing guide glossary entry). A routing-guide violation is a miss against that rulebook, not against quantity. No routing request placed, an unassigned carrier or facility, or freight terms the retailer never authorized, all count as violations (Bealls Import Vendor Chargeback Violation Key, as published on /codes).

What the routing guide governs, an example miss, and its source.
GovernsExample missSource
Carrier and facility assignmentShipping through an unassigned carrier or to the wrong facility/codes (Bealls 201, 206)
Routing request and schedulingPO shipped with no routing request placed, or pickup not scheduled/confirmed in time/codes (Bealls 214, 217)
Freight termsShipping prepaid when the retailer requires collect or third-party billingMacy's Backstage Routing Guide §3.0
WHAT THE ROUTING GUIDE GOVERNSGOVERNSEXAMPLE MISSCarrier and facilityassignmentShipping through an unassigned carrier orto the wrong facilitySource: /codes (Bealls 201, 206)Routing request andschedulingPO shipped with no routing request placed, orpickup not scheduled/confirmed in timeSource: /codes (Bealls 214, 217)Freight termsShipping prepaid when the retailer requirescollect or third-party billingSource: Macy's Backstage Routing Guide §3.0
What the routing guide governs, an example miss, and its source. Carrier and facility assignment: shipping through an unassigned carrier or to the wrong facility (/codes, Bealls 201, 206). Routing request and scheduling: PO shipped with no routing request placed, or pickup not scheduled/confirmed in time (/codes, Bealls 214, 217). Freight terms: shipping prepaid when the retailer requires collect or third-party billing (Macy's Backstage Routing Guide section 3.0).

How a routing violation becomes a chargeback

Each retailer turns the same miss into a deduction its own way. See the Burlington and Macy's guides for the full dispute process.

What converts a routing miss into a charge, by retailer, and its source.
RetailerWhat converts the miss to a chargeSource
CVSExcess freight expense plus an administrative fee/glossary#routing-guide
BurlingtonPays freight on a collect shipment when it is routed through Burlington's TMS with a carrier Burlington assigns/glossary#routing-guide
Macy's BackstageUnauthorized carrier or destination shifts freight, loss, and detention onto the vendorMacy's Backstage Routing Guide §4.1
WHAT CONVERTS THE MISS TO A CHARGERETAILERWHAT CONVERTS THE MISSCVSExcess freight expense plus anadministrative feeSource: /glossary#routing-guideBurlingtonPays freight on a collect shipment when itis routed through Burlington's TMS with acarrier Burlington assignsSource: /glossary#routing-guideMacy'sBackstageUnauthorized carrier or destination shiftsfreight, loss, and detention onto the vendorSource: Macy's Backstage Routing Guide §4.1
What converts the miss to a charge, by retailer. CVS: excess freight expense plus an administrative fee (/glossary#routing-guide). Burlington: pays freight on a collect shipment when it is routed through Burlington's TMS with a carrier Burlington assigns (/glossary#routing-guide). Macy's Backstage: unauthorized carrier or destination shifts freight, loss, and detention onto the vendor (Macy's Backstage Routing Guide section 4.1).

Detention, demurrage, and missed-appointment charges

Detention and demurrage are charges for time a carrier or container gets held past its scheduled window. Who carries them depends on who caused the hold, and the claim can run toward the retailer: Macy's Backstage has vendors shipping on their own carrier submit detention or demurrage charges to its Accounts Payable within 30 days of delivery (Macy's Backstage Routing Guide, Section 12.0). A missed or unscheduled appointment is a related but separate failure, charged on its own by Bealls (failure to schedule and confirm pickup) and Kroger (appointment charges on /codes).

Process, in order:

  1. Carrier arrives at dock
  2. Appointment record timestamp
  3. Time held past the scheduled window
  4. Detention or demurrage invoice, matched to the appointment record
CARRIER HELD PAST THE WINDOWCarrier arrivesat dockAppointment recordtimestampTime held past thescheduled windowDetention or demurrageinvoice, matched to theappointment recordWho carries the charge depends on who caused the hold.
In order: carrier arrives at dock, appointment record timestamp, time held past the scheduled window, detention or demurrage invoice matched to the appointment record. Who carries the charge depends on who caused the hold.

How to check a freight or routing charge against your own records

Before you dispute anything, line up the freight terms and carrier or facility on your purchase order against your routing request, carrier confirmation, and appointment record. If the retailer's own system assigned the carrier, moved the appointment, or approved an exception, that record is your evidence.

Process to work through, in order:

  1. Purchase order (freight terms)
  2. Routing request
  3. Carrier / facility assignment
  4. Appointment record
  5. Bill of lading
FIVE DOCUMENTS, IN ORDERPurchase order(freight terms)RoutingrequestCarrier / facilityassignmentAppointmentrecordBill ofladingIf the retailer's own system assigned the carrier, moved theappointment, or approved an exception, that record is your evidence.
In order: purchase order (freight terms), routing request, carrier / facility assignment, appointment record, bill of lading. If the retailer's own system assigned the carrier, moved the appointment, or approved an exception, that record is your evidence.

When a freight or routing charge is disputable, and what to attach

A freight or routing charge is disputable when your routing confirmation, carrier-signed bill of lading, or appointment record shows the shipment was routed and delivered as required. It's likely valid when those same records confirm the miss instead: a routing request never placed, or a carrier chosen without authorization (Macy's Backstage Routing Guide §4.0-4.1; /codes).

When you dispute, attach the freight terms, the routing request and confirmation, the carrier or facility assignment, the appointment record, and the bill of lading. See also our guide to OTIF fines, our retail compliance overview, and this related post.

Roy matches each deduction to the documents that answer it and prepares the dispute for review. Curious where your own freight and routing deductions stand? Get a free deduction assessment.

LIKELY DISPUTABLE OR LIKELY VALIDLIKELY DISPUTABLELIKELY VALIDRouting confirmation numbermatching the carrier andfacility usedNo routing request on filefor the shipmentMTO/retailer authorizationnoted on the bill of ladingUnauthorized carrier chosenwithout approvalAppointment record showingthe retailer's dock set ormoved the timeCarrier-signed BOL and gate-inrecord confirm the vendor'sown delay
Likely disputable: routing confirmation number matching the carrier and facility used; MTO/retailer authorization noted on the bill of lading; appointment record showing the retailer's dock set or moved the time. Likely valid: no routing request on file for the shipment; unauthorized carrier chosen without approval; carrier-signed BOL and gate-in record confirm the vendor's own delay.
Questions

Frequently asked questions

What is a routing-guide violation?

A miss against a retailer's own rulebook for getting freight to it, such as shipping without a placed routing request, using an unassigned carrier or facility, or shipping on the wrong freight terms, rather than a miss on quantity.

Is a freight or routing chargeback disputable?

Yes, when your own routing confirmation, carrier-signed bill of lading, or appointment record shows the shipment was routed and carried the way the retailer required; it is likely valid when those same records confirm the miss.

Is a detention or demurrage charge always valid?

Not necessarily. It depends on whether the appointment and gate-in records show the carrier was held past a window the retailer itself controlled.

What documents prove a freight or routing charge is wrong?

The purchase order's freight terms, the routing request and confirmation, the carrier or facility assignment, the appointment record, and the bill of lading.

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