“Invoicing inaccuracy in the ocean freight industry is a well-known but seldom discussed fact,” says Steve Ferreira, founder and owner of Ocean Freight Refunds Inc. (OFR), a New York and Prague-based company that secures cash refunds for U.S. importers and retailers who ship their goods via ocean carriers.
“American consumers should be aware that the increased freight cost translates into a higher price they ultimately pay at the cash register,” he says. “At the end of the day, that may add up to a hefty sum.”
According to Ferreira, who has over 25 years of ocean freight pricing and contracting experience, 15 million containers of goods, mostly clothing, toys and electronics, were imported into the U.S. last year. Ten percent had an erroneous freight charge, resulting in an increased bill to the importer. Unchecked, these costs – totaling a staggering $750 million per year – are passed on to the consumer.
“At the consumer level, the billing errors mean that, on average, a family of four would have to spend $100 more on holiday gifts this year just to compensate for the increased expense to the retailer,” he says. “That’s why we help importers identify and refund the invoicing errors, or avoid them altogether, before they trickle down to the consumer.”
Many factors contribute to invoicing errors, Ferreira says, including incorrect commodity rates, the shipment’s routing, fuel surcharges, and seasonal costs.
By using proprietary databases to merge three years – as allowed by the U.S. law – of its clients’ ocean freight invoice records, and determining the invoice accuracy of a specific shipment, OFR, which counts Fortune One Hundred companies and the United States Government among its clients, has recovered millions over the past 14 years.
“Some 95 percent of all ocean freight companies are foreign based, and, in case of an invoicing error, these corporations retain the money that rightfully belongs to the U.S. consumer,” Ferreira says. “We find and transfer these funds back to the American economic system.”
The process will become even more efficient in the first quarter of 2009, with the introduction of RightRate, a new application developed by OFR, which will provide an automatic audit for both historic and real time ocean freight invoice data.
“With this innovative technology, which has already saved one of our clients $500,000 in erroneous charges, we will be able to control invoices and eliminate inaccuracies before they are reflected on a price tag,” Ferreira says. “This way the consumers can be assured that whatever they pay for any given item is the right price.”
About the Company
Ocean Freight Refunds Inc. (OFR) provides the industry's only dedicated freight audit for clients who ship cargo via ocean freight. OFR's service focuses on a review of historic ocean freight invoices and related charges. Unlike accounts payable auditing, or auditing done by the actual ocean freight service providers themselves, OFR offers an ocean freight only refund review that provides cash payments of historic refunds back to the cargo owner.
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For more information contact:
Steve Ferreira (stevef@oceanfreightrefunds.com)
Ocean Freight Refunds Inc.
New York: 646-217-4215
Prague: 42-608-262-058
www.oceanfreightrefunds.com
