Global Freight Audit And Payment Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Organisation Size (Large Organisation Size, Small And Medium Organisation Size), By Mode Of Transportation (Rail Freight, Road Freight, Ocean Freight, Air Freight, Others), By Industry Verticals (Manufacturing, Healthcare, Retail, Food And Beverages, Others), And By Geography - Forecasts From 2023 To 2028

The global freight audit and payment market is expected to grow at a compound annual growth rate of 10.15% over the forecast period to reach a market size of US$7,028.539 million in 2028, from US$3,572.235 million in 2021. 

While freight pay is simply an account payable service for your transportation invoices, a freight audit is a business process where a company's freight bills are reviewed, corrected, and validated for correctness. If errors are discovered on the shipper's invoice, the freight audit and payment business they have selected will get in touch with the carrier to see that they are fixed and a new invoice is issued. Due to growing e-commerce, technological advancements, security concerns, and volatility in the transportation sector, the landscape of freight audit and payment is changing.

Getting the carrier's bills in order, Auditing freight bills, Payment in kind to the carrier, and Total freight charges billed to the shipper are some of the services that are provided by freight audit and payment companies. Transportation expenses are assigned to specific cost centres. Cost and service reporting in great detail for logistics. The market for freight audit and payment services is growing as a result of the transportation and logistics sector's quick adoption of efficient management solutions. Additionally, it helps with data collection, giving audit analysis, TMS, carrier communication, reporting data related to freight and other duties that are expected to support the growth of the freight audit and payment business. Factors such as a decrease in manual labour, rising adoption of analytics and benchmarking, cost efficiency, globalization and technological advancements will also contribute to the growth of the market during the forecast period.

The inability to deploy freight audits to third-party companies, coupled with inaccurate records and cost collection, will limit the market's growth. The retail and e-commerce sectors' remarkable growth will provide the business with a good opportunity for expansion in the near future.

Increasing globalisation will spur growth during the projection period

Rising globalization is also anticipated to increase the adoption of freight audit and payment services around the world. Freight payment services are becoming increasingly global. Freight auditing and payment services are well-established in the United States and are growing more widespread in numerous markets across the world. Shippers are increasingly expanding their supply chains into new areas throughout the world, bringing their freight audit and payment standards with them. This transition has pushed freight payment service providers to broaden their domestic knowledge to global markets where the freight payment business model may be unfamiliar. There has been continued expansion of US companies into international markets, as well as some European vendors such as ControlPay and Interlog Group.

Benefits such as cost efficiency provided by freight audit and payment services will also spur market growth during the forecast period. Freight audits and pay save shippers money in two ways. It first enables them to detect the data mistakes we previously described. Second, it aids in the elimination of pointless labour expenses. According to Redwood logistics data (an American logistics company), An audit's typical error recovery rate is between 6 and 8%. An audit could significantly alter the situation if you're shipping 100 shipments every week but only 8 of them are performing cash deficit problems. Freight auditing can boost the bottom line by reducing labour expenditures in addition to the cost savings from error repair. Verifying, processing, and paying an internal freight invoice typically cost $11 in labour. However, the cost of outsourcing this task is just about 5 to 10% of the internal cost. This will lead to growth in the adoption of freight audit and payment services during the forecast period. These services also reduce the cost of operations as they automate many of the time-consuming manual processes. They quickly look up rates and approved invoices while general ledger codes are automatically assigned. Save accounting staff time and verify that payments are correct before invoices are approved.

North America is anticipated to hold a significant amount of the market share during the forecast period

North American region is anticipated to hold a significant amount of market share in the global freight audit and payment services. The presence of leading freight audits and payment firms like US Bank Corporate Payment Systems,  nVision Global, and National Traffic Services are based in the area. Outsourcing the freight audit and payment function is a well-established practice in the United States, with numerous trustworthy contractors. Many shippers and 3PLs have outsourced the auditing and payment of invoices to a vendor, resulting in significant savings and increased accuracy. When the transportation trade was severely regulated, a group of banks (the National Association of Freight Payment Banks) founded the freight payment sector in the United States. Transportation bills were to be paid within a week for rail bills and seven days for motor carrier costs. The above factors will accelerate growth in this region. The prominent e-commerce sectors in countries like USA and Canada will also spur demand for these services. Rising freight traffic in countries like the USA will spur growth in the market in this region.

Market Key Developments

• In July 2022, enVista, a global provider of consulting, technology, managed services and automation solutions that optimize and transform physical and digital commerce, is selling its global freight audit and payment (FAP) services and its Enspire Commerce platform of omnichannel software solutions, to Körber. EnVista will be able to strategically concentrate on accelerating growth ambitions for its global supply chain consultancy, IT managed services, as well as its Microsoft, robotics, and automation solutions, thanks to the agreement. Additionally, this will provide Körber with a larger software platform and environment for enVista's commerce and mobility operations, accelerating growth.
• In March 2022, To support further growth in Canada, AFS Logistics purchased DTA Services, Ltd., a Toronto-based freight bill audit, cost allocation, and analytics company. According to Scott Matthews, president, of operating companies, AFS, "this transaction broadens and strengthens our value proposition to clients in the U.S. and Canada through the strong relationships DTA has created over decades.
• In December 2022, Trimble announced that it has reached an agreement to buy Transporeon, a well-known cloud-based transportation management software platform, in an all-cash deal worth €1.88 billion. With an integrated suite of best-in-class sourcing, planning, execution, monitoring, and settlement tools, Transporeon's software platform powers a global network of 145,000 carriers, 1,400 shippers, and load recipients. Hg, a renowned software and services investor and the company's current majority stakeholder, will sell Transporeon to Trimble.
  

Global Freight Audit And Payment Market Scope:

Market Segmentation:

• BY ORGANIZATION SIZE
  • Large Organization Size
  • Small and Medium Organization Size

• BY MODE OF TRANSPORTATION
  • Rail Freight
  • Road Freight
  • Ocean Freight
  • Air Freight
  • Others

• BY INDUSTRY VERTICALS
  • Manufacturing
  • Healthcare
  • Retail
  • Food and BeverageS
  •  Others

• BY GEOGRAPHY
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Others
  • Middle East and Africa (MEA)
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Indonesia
    • Thailand
    • Taiwan
    • Others