Freight Monitoring

TLKSource Sample Co · TLKS-2026-0040 · 16/05/2026

Executive summary. Q1 2025 freight spend ran at $23,371 across three months (~$93k annualised on this carrier subset), with two clear cost-drift signals: the Toll FAF blanket has escalated from 5.96% in January to 7.10% in March (+114 bps in 60 days) with no published formula, and accessorial leakage (re-delivery, demurrage, residential) is compounding. Linehaul unit rates are broadly in line with the FY25 Toll rate schedule. The dominant exposures are surcharge opacity and DIFOT-linked accessorials ($1,015 in demurrage + re-delivery across Feb–Mar alone), not base rate over-charging.

Headline findings

Finding	Severity	Cost exposure
FAF escalating without disclosed formula	high	$3,560
The FAF blanket rose from 5.96% (Jan, $890.25) to 6.57% (Feb, $1,024.50) to 7.10% (Mar, $1,187.00) — a 19% lift in two months and a 33% lift in dollar terms. The Toll FY25 rate schedule does not publish an FAF formula, index reference, or cap. AIP terminal gate diesel moved only ~3-4% over the same window, so the FAF lift outpaces the underlying fuel index by roughly 2x.
DIFOT-linked accessorials compounding	medium	$6,090
February invoice 2025-02-FRT-7350 carries $540 demurrage (3 events @ $180) and March invoice 2025-03-FRT-7418 carries $475 re-delivery (5 attempts @ $95). Both are contractually permitted at rate-card prices, but the volume of failed/delayed deliveries is the issue — $1,015 across two months annualises to ~$6,090. Root cause (booking accuracy, dock windows, or carrier performance) needs isolation; if carrier-caused, these should be charge-backs not invoiced costs.
Residential surcharge volume rising 44%	medium	$2,438
Residential delivery surcharges rose from 52 events (Jan) to 68 (Feb) to 75 (Mar) — a 44% lift over the quarter against carton volume growth of only ~25%. Surcharge is rate-card compliant at $12.50/consignment, but the rising share suggests address classification drift or expanded B2C mix that wasn't priced into the original deal. Annualised residential spend is tracking at ~$9,750.
Card payment fee passed through uncapped	low	$1,940
Card payment fees of $142 (Jan), $165 (Feb), $178 (Mar) are charged at 1.85% per the rate card. This is contractually permitted but is being applied to the full invoice including surcharges and the FAF — effectively a surcharge on a surcharge. EFT/direct debit would eliminate this $485/quarter line entirely (~$1,940 annualised).

Finding

Severity

Cost exposure

FAF escalating without disclosed formula

high

$3,560

The FAF blanket rose from 5.96% (Jan, $890.25) to 6.57% (Feb, $1,024.50) to 7.10% (Mar, $1,187.00) — a 19% lift in two months and a 33% lift in dollar terms. The Toll FY25 rate schedule does not publish an FAF formula, index reference, or cap. AIP terminal gate diesel moved only ~3-4% over the same window, so the FAF lift outpaces the underlying fuel index by roughly 2x.

DIFOT-linked accessorials compounding

medium

$6,090

February invoice 2025-02-FRT-7350 carries $540 demurrage (3 events @ $180) and March invoice 2025-03-FRT-7418 carries $475 re-delivery (5 attempts @ $95). Both are contractually permitted at rate-card prices, but the volume of failed/delayed deliveries is the issue — $1,015 across two months annualises to ~$6,090. Root cause (booking accuracy, dock windows, or carrier performance) needs isolation; if carrier-caused, these should be charge-backs not invoiced costs.

Residential surcharge volume rising 44%

medium

$2,438

Residential delivery surcharges rose from 52 events (Jan) to 68 (Feb) to 75 (Mar) — a 44% lift over the quarter against carton volume growth of only ~25%. Surcharge is rate-card compliant at $12.50/consignment, but the rising share suggests address classification drift or expanded B2C mix that wasn't priced into the original deal. Annualised residential spend is tracking at ~$9,750.

Card payment fee passed through uncapped

low

$1,940

Card payment fees of $142 (Jan), $165 (Feb), $178 (Mar) are charged at 1.85% per the rate card. This is contractually permitted but is being applied to the full invoice including surcharges and the FAF — effectively a surcharge on a surcharge. EFT/direct debit would eliminate this $485/quarter line entirely (~$1,940 annualised).

Market benchmark

Line item	Current	Market range	Verdict	Source
Sydney–Melbourne carton effective rate (Jan-Mar avg $40.24/carton)	$40	$36–$48	in_range	Toll/StarTrack/Linfox published Road Express tariffs Q1 2025 for 0–25kg consignments on the NSW–VIC lane
Sydney–Brisbane pallet rate (Jan-Mar range $152–$213)	$190	$165–$220	in_range	Toll Pallet Express FY25 base $185 + AFGC 2024 freight survey east-coast pallet range
Sydney–Perth carton effective rate (~$106/carton avg)	$106	$95–$145	in_range	Toll FY25 schedule: minimum $145/consignment, $0.58/kg — invoiced rate implies sub-minimum pricing achieved
FAF blanket percentage (Mar 7.10%)	$7	$5–$7	above_market	Linfox/StarTrack published FAF schedules Q1 2025 referencing AIP terminal gate diesel; most published carrier FAFs sit 4.5–6.5% at current diesel band
Tail-lift surcharge per consignment	$28	$22–$35	in_range	Toll FY25 rate card vs StarTrack/Linfox accessorial schedules 2024
Re-delivery fee per attempt	$95	$45–$85	above_market	ABS-cited carrier accessorial benchmarks; StarTrack & Aramex published re-delivery fees 2024

Line item

Current

Market range

Verdict

Source

Sydney–Melbourne carton effective rate (Jan-Mar avg $40.24/carton)

$40

$36–$48

in_range

Toll/StarTrack/Linfox published Road Express tariffs Q1 2025 for 0–25kg consignments on the NSW–VIC lane

Sydney–Brisbane pallet rate (Jan-Mar range $152–$213)

$190

$165–$220

in_range

Toll Pallet Express FY25 base $185 + AFGC 2024 freight survey east-coast pallet range

Sydney–Perth carton effective rate (~$106/carton avg)

$106

$95–$145

in_range

Toll FY25 schedule: minimum $145/consignment, $0.58/kg — invoiced rate implies sub-minimum pricing achieved

FAF blanket percentage (Mar 7.10%)

$7

$5–$7

above_market

Linfox/StarTrack published FAF schedules Q1 2025 referencing AIP terminal gate diesel; most published carrier FAFs sit 4.5–6.5% at current diesel band

Tail-lift surcharge per consignment

$28

$22–$35

in_range

Toll FY25 rate card vs StarTrack/Linfox accessorial schedules 2024

Re-delivery fee per attempt

$95

$45–$85

above_market

ABS-cited carrier accessorial benchmarks; StarTrack & Aramex published re-delivery fees 2024

Red flags

Fuel Adjustment Factor (FAF) — not published in rate schedule: The FY25 rate schedule does not disclose the FAF methodology, index reference, review cadence, or cap. Charges have moved from 5.96% to 7.10% in 60 days without explanation, exposing the customer to unilateral surcharge inflation. → Re-negotiate the FAF as a published formula tied to AIP terminal gate diesel (Sydney) with a defined baseline, monthly reset, and a cap of CPI + diesel index movement. Backdate to 1 Jan 2025.

Card payment fee (1.85% pass-through): Fee is applied to the gross invoice including FAF and accessorials, compounding surcharges. No alternative settlement terms are referenced. → Request EFT/direct debit settlement at zero fee, or cap the card fee at 1% and apply only to linehaul base.

Demurrage / Re-delivery (rate card $180 / $95): No DIFOT or carrier-performance carve-out — customer pays regardless of root cause. February demurrage of $540 and March re-delivery of $475 should be investigated for carrier-caused events. → Insert a clause: where root cause analysis attributes the failed delivery to carrier (mis-sort, missed window, vehicle fault), the charge is waived. We recommend reviewing this clause with legal counsel before drafting.

Residential delivery surcharge: Surcharge applied per consignment at $12.50 with no volume tiering; residential mix is rising as a share of consignments, exposing the customer to unmanaged accessorial creep. → Negotiate a volume-banded residential rate (e.g. $9.50 above 200 events/month) or a blended all-in rate for the B2C lane.

Negotiation playbook

1. Issue a formal FAF disclosure request to Toll for Jan-Mar 2025 calculations, the index reference used, and the formula.
Without methodology disclosure, the 114bps rise in 60 days cannot be validated against fuel movement. This is the largest single cost-drift signal in Q1. — Target: FAF re-set to a published AIP-diesel-linked formula with a 6.0% cap at current diesel band; recover the differential above the cap for Feb and Mar (~$320).

2. Run a 30-day root-cause review on every demurrage and re-delivery event since 1 January.
$1,015 of accessorials in 60 days is high relative to consignment volume. If even half are carrier-caused, that's a $3k+ annualised charge-back. — Target: Credit notes for carrier-caused events and a contractual carve-out for future occurrences.

3. Switch invoice settlement from card to EFT/direct debit.
1.85% card fee on gross invoice is a no-value-add line currently running ~$485/quarter and compounding on the FAF. — Target: Eliminate ~$1,940 annualised admin cost with no operational change.

4. Tender the Sydney–Perth lane to one alternate carrier for benchmarking.
Sydney–Perth carton lane is the largest single spend bucket (~$2,000+/month, ~25% of invoice). Even a small unit-rate improvement compounds meaningfully. — Target: Either a 5-8% rate reduction on the lane or documented confirmation Toll is at market — both outcomes strengthen the next contract round.

5. Request volume-banded residential surcharge given consignment growth.
Residential events grew 44% over Q1; a tiered rate above 200 events/month converts growth into a price-down rather than a cost-up. — Target: Residential surcharge banded at $9.50 above 200 events/month, saving ~$3/event on the top tier.

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