Construction Today Vol 23 Issue 5 | Page 18

________________________________________________________________________________________________________________________

For most construction companies, freight costs don’ t appear on any report. They hide inside delivered material pricing, are scattered across subcontractor invoices, and slip through as detention fees nobody disputes. Ask a contractor what trucking cost them last quarter, and the honest answer is a shrug.

Yet, the lack of shipment visibility compounds fast. Every load carries a supplier markup nobody benchmarks. Every congested site racks up hourly detention charges nobody tracks. Every late truck idles a crane crew, pushes the erection sequence, and burns overtime that dwarfs the freight bill itself.
When contractors can see shipments in transit and aggregate freight spend, they catch late loads while there’ s still time to react, spot suppliers and lanes bleeding money, and turn freight from an accepted cost into a managed one.
Why freight costs get buried inside project budget Most construction companies overpay for freight because they never manage it as an expense. Freight expenses are hidden inside the prices of materials. Most contractors let suppliers handle deliveries and quote“ freight included,” which translates to a markup on every load, while you never see the actual rate. Contractors that treat transportation as a managed line rather than a buried one rely on proven models for optimizing logistics to benchmark rates, test routing choices, and expose the markups that delivered pricing hides.
Additionally, freight costs are spread across material POs, subcontractor invoices, and equipment moves, which makes the total transport expenses virtually invisible. Job sites also contribute to the problem. Delivering to a site without a loading dock triggers accessorial charges that commonly run from $ 100 to $ 300 per shipment.
18