Understanding Freight Accessorial Charges: Common Fees in Shipping

In the rapid world of shipping and logistics, accessorial charges go beyond basic freight rates and encompass extra services offered by carriers. Comprehending these fees is vital as they greatly affect shipping costs and operations. Effectively managing these charges requires awareness and strategic planning to streamline supply chain expenses.

Understanding Freight Accessorial Charges: Common Fees in Shipping is essential because they can significantly impact your total shipping costs. These charges encompass a wide range of additional expenses incurred due to specific requirements or unexpected situations during transportation. Examples include fees for special handling, prolonged wait times, specialized equipment usage, or extra labor, among others.

Common types of freight accessorial charges

Navigating the realm of shipping can often feel like uncharted territory, especially when confronted with a wide range of hidden shipping charges that seem to come out of nowhere. Here’s a breakdown of some common freight fees you might encounter:

Detention charges: Detention fees apply when a driver is held up at the pickup or delivery location for longer than the predetermined time. A driver’s time is valuable, and any delays can disrupt the entire transportation schedule, leading to these additional charges.

Lumper: A lumper fee is charged when a shipper employs third-party workers to load or unload the cargo. This fee is typically used in the food industry where shipments require special handling and sorting before reaching their final destination.

Residential delivery fees: Delivering goods to residential areas requires extra time and effort due to navigating through smaller roads and residential streets. This additional service is often reflected in the form of residential delivery fees.

Inside delivery charges: This fee applies when freight needs to be delivered inside a building or specific location rather than just at the curbside. It covers the extra effort needed to bring the goods to the exact spot required by the recipient.

Redelivery fees: If the initial delivery attempt is unsuccessful, carriers may impose redelivery fees to cover the cost of making another delivery attempt.

Liftgate fees: Liftgate fees are applied when a truck without a liftgate is used to deliver goods that require a liftgate for loading or unloading. This specialized equipment adds convenience and is essential for heavy or oversized freight.

Truck Ordered and Not Used (TONU): In situations where a truck is ordered but not utilized, carriers may charge a TONU fee to compensate for the loss of potential earnings during that time.

Understanding these common shipping fees is the first step in managing your expenses effectively. With this knowledge, you can anticipate potential charges and budget accordingly, ensuring a smoother shipping experience.

Reasons for freight accessorial charges

Shipping is a complex process that often requires extra services and accommodations to ensure that goods are delivered in a timely and efficient manner. Accessorial charges are a way for carriers to be compensated for these additional efforts, ensuring that they can continue to provide a high level of service to their customers. Let’s delve deeper into why these fees exist and the situations that trigger them.

Compensation for extra services: Accessorial charges cover a range of additional services beyond standard freight transportation. These can include loading and unloading cargo, providing specialized equipment like liftgates, or even waiting time at a pickup or delivery location. Each of these services requires extra resources, and accessorial charges help to cover those costs.

Addressing unique shipping situations: Shipping is not always a straightforward process. There are often unique situations and circumstances that require special attention or accommodations. For example, delivering goods to a residential area may require smaller vehicles and additional time to navigate through residential streets. Accessorial charges ensure that carriers are compensated for the extra effort required in these situations.

Mitigating unforeseen delays and issues: The shipping process is subject to a range of unforeseen delays and issues that can arise at any time. Whether it’s traffic, weather, or other obstacles, carriers need to be able to adapt and respond to these challenges. Accessorial charges provide carriers with the flexibility to address these issues without sacrificing the quality of their service.

Strategies to anticipate and manage accessorial charges

Effectively managing and anticipating negative accessorial charges in your shipping operations is essential to minimize unexpected expenses and maintain a streamlined supply chain. By proactively addressing potential accessorial issues, you can ensure a more cost-effective and efficient shipping process. Here are some strategies to help you plan for and handle freight accessorial charges:

Understand Your Shipping Facilities: Familiarize yourself with your shipping facilities, including loading and unloading procedures, equipment availability, and any potential constraints that could lead to freight accessorial charges.

Know Your Products: Thoroughly understand the nature of the products you are shipping, as different goods may require specific handling or storage conditions. This knowledge can help you prevent accessorial fees related to mishandling or damage.

Give A Detailed Bill of Lading (BOL): Provide comprehensive information on your Bill of Lading (BOL), including any special handling instructions or legal requirements that carriers need to be aware of, such as hazardous materials or temperature-sensitive cargo.

Have Your NMFC Number: Know your National Motor Freight Classification (NMFC) number for less than truckload (LTL) shipments. This knowledge can help you accurately classify your shipments and estimate associated costs.

Additional Handling or Equipment Requirements: Communicate any additional handling or equipment considerations, such as the need for lift-gates, pallet jacks, or forklifts, in advance to avoid surprise accessorial charges.

Get Accurate Weights and Measurements: Ensure that the weights and measurements of your shipments are accurate and within legal limits. Properly distributing the load in the trailer can prevent the need for costly reworking of shipments.

By implementing these strategies and maintaining a proactive approach to managing freight accessorial charges, you can optimize your shipping operations and reduce unexpected costs, contributing to a more efficient and cost-effective supply chain.