
Accessorial Charges Explained: How to Avoid Them
Oftentimes specialized deliveries require specialized tools to handle, they over run time slots, or requirements are changed during loading, unloading and during transportation. But what does this have to do with accessorial charges?, well, accessorial charges in short are extra fees applied to standard freight rates for services, like the ones mentioned, that are beyond basic pick up and delivery services. The fees are added to cover additional labor, specialized equipment use, extra time and fuel used to fulfil a shipments requirements.
Ten Common Accessorial Charges
1. Liftgate Use 💵
Most often, trucks and trailers are unloaded at a loading dock or through the use of a ramp. However, if the cargo’s destination does not have a dock available, or a ramp, then a specialized trailer with a liftgate will be required to successfully and carefully unload the freight.
2. Layover Charge 💵
This charge applies if a truck is unable to load or unload during the scheduled day. Lengthy layovers, where drivers are waiting at a location for an extended period of time may incur a layover charge. This is because these delays have a knock on effect throughout the supply chain, as a result carriers might need to reschedule other deliveries and this can end in a significantly less productive day.
3. Stop Charges 💵
Stop charges apply to any extra stops a carrier must make in order to complete a delivery along its’ route.
4. Fuel Surcharges 💵
Fuel costs are ever changing, and can change week on week. The reason behind fuel surcharges is so carriers can cover the fluctuation in their billing. This is potentially the most common surcharge and can be found on >90% of bills. Most freight partners will make you aware of the rate before shipping, for example, we send out a weekly newsletter to update our customers on any business changes, including fuel surcharges.
5. Detention Fees 💵
These are a similar charge to layover fees, they’re added to a bill when a carrier is delayed at pick-up or drop off. However, detention fees can be incurred in a shorter time frame. Carriers usually allow an added in pre-determined amount of detention time, once the delay surpasses this time, is when shippers will be charged extra.
6. Lumper Fees 💵
Carriers are simply responsible for delivering your freight to a destination. If the driver is required to load or unload the shipment, then this is an extra service and the shipper will be charged extra for labor. However, if the cargos’ destination is a large distribution warehouse then there are third-party labor workers that are paid to load and unload cargo. These costs are passed onto the shipper as a “lumper fee”. Lumper fees can range from $25 to multiple hundreds $$$ depending on the cargo, the full rate is calculated once the freight is fully unloaded.
7. Re-consignment 💵
Loads are booked and rates determined depending on the freight, it’s route and destination. So, if this changes, your quote will obviously change too. But, if this changes after the load has been loaded into the truck there is also a re-consignment charge added to your bill.
8. Sort & Segregate 💵
This is an additional fee service, where the shipper is charged should they require the driver, warehouse personnel or lumpers to sort and segregate pallets or boxes of freight by PO or customer order. A full audit of the freight can then be carried out, which means detaining the truck until completed. The extra labor and time required is what justifies the extra fee.
9. Two Man Delivery Service (Extra Driver) or White Glove Service 💵
Having an extra driver in the cab is a fantastic option for long haul journeys, for heavy deliveries or deliveries inside or into awkward spaces. The two drivers can share the driving, meaning less breaks on the road and quicker transit times and both share the load of unloading the shipment at its’ destination. However, this extra driver comes with an extra charge, for obvious reasons, because the carrier has to pay two wages for that one shipment.
10. Reclassification & Reweigh 💵
This accessorial charge only applies to LTL shipments. That’s because LTL rates are based off shipment weight, dimension, and classification. In situations where these are not provided or they’re incorrect the carrier will need to re-quote your shipment. Also, depending on the dimensions and classification will depend how the truck is loaded. So, when carriers are given incorrect information, it will involve unloading and loading the truck again. This is super inefficient, wastes time and energy, therefore an accessorial charge is added to the shippers final bill.
How To Avoid Accessorial Charges 🤔
Now that we’ve covered some common accessorial charges, be warned there are still more that can creep onto your final bill (BOL). But, here’s some useful tips to avoid them.
1. Schedule Dock Times
Either you or your carrier should confirm dock hours, availability and labor coverage. Be sure to track shipments in real-time and proactively re-schedule if needed.
2. Be Precise In Measurements, Dims, Weight And Freight Class
Avoid reclassification by giving thorough measurements and characteristics of your shipment up front.
3. Stage Your Freight Appropriately
Staging your freight near the dock means loading and unloading is much more efficient, label and pre-palletize freight where possible to again speed up the loading and unloading process.
4. Organize Extra Equipment Ahead Of Time
For example, if the consignee lacks a dock, include the use of a liftgate in the quote, not organising this can lead to delays or premium prices.
5. Utilize Drop And Hook
Using a drop and hook service, means that freight can be dropped at its’ destination and the truck can leave asap. Diminishing layover and detention fees.
6. Ask About Fuel Surcharges
Ask your carrier what the fuel surcharges are if they’re not made apparent. This way you can factor them into the price.
7. Communicate Changes Promptly
If you can, be sure to make any changes to your freight requirements before dispatch. This way you can avoid re-consignment fees and additional stop fees.
How Can PEI Help?
If you want to work with a transportation company that can help you to effectively avoid accessorial charges. Then look no further, we can help you. Get in touch with us at PEI where all of our quotes have transparent costing. Call us on: 888-SHIP-911 or use the link below ⬇️
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