Freight Accessorial Fees: The Complete Guide

freight accessorial fees:the complete guide

freight accessorial fees:the complete guideintroductionIf you’ve ever taken a look at your final freight bill, andnoticed unexpected charges, you’re not alone. Theseextra fees are most likely for accessorial services,which include anything deemed outside of “normal”services provided by the carrier. Accessorial chargesare one of the top complaints of freight shippersand the most common factor in billing discrepancies.But knowing what extra costs your freight is likelyto incur, whether LTL or truckload, will help you planahead so you can avoid that freight bill double take.2

freight accessorial fees:the complete guidewhy do carriers charge foraccessorials?Accessorials aren’t just a money-maker for carriers —they are actually compensation for the extra time andeffort a carrier must make to accommodate a shipper.A carrier’s main responsibility is simply the pick-up,transport, and delivery of your freight. Whether youare using LTL or truckload services, your shipment mayrequire supplementary resources, and these are goingto cost you. The need for freight transportation is atan all-time high, but there are not enough carriers tomeet the need for available loads. Because of this,carriers are cracking down with accessorial fees in orderto eliminate problematic (unprofitable) shipments.3

freight accessorial fees:the complete guidewhat are the mostcommon LTLaccessorials fees?LTL transportation is a unique type of service thatrequires a shipment to travel across a network ofdifferent checkpoints within a set lane. Because theseshipments are traveling through different terminals,some types of accessorials may be more applicablethan others. It’s always best to contact a carrierdirectly to answer questions on whether a certainaccessorial may apply to your shipment. While youmay not be able to eliminate these charges fromyour bill, knowing what fees you’re likely to incurwill make it easier to protect your bottom line.4

freight accessorial fees:the complete guideliftgateA liftgate is a mechanical device on the back of a truckthat will raise or lower freight to the ground or upinto the trailer. It’s used most often when a shippingor receiving location does not have a loading dock orthe equipment to safely move freight, such as withresidential locations. Not every truck is equipped with aliftgate, so it’s absolutely necessary to inform the carrierwhen scheduling a pick-up. The charge for liftgateservice is determined by the carrier. While it may not beavoidable, it is helpful to be familiar with your pick-upand delivery locations. If there isn’t a dock, or a forkliftin order to do the loading and unloading, know to buildthe price of the accessorial into your customer’s price.5

freight accessorial fees:the complete guideinside pick-up/deliveryOne of the biggest mistakes a shipper can makeis thinking that LTL shipments are just “bigger”small package or ground shipments, when they areactually totally different services. As mentionedin the liftgate example, any extra handling by thedriver beyond simply getting a shipment where itneeds to go is going to cost extra. That means youmust have a team ready and waiting for loading andunloading. The driver may offer to help unload yourshipment, or bring it into a warehouse or storefront,but you will receive a charge for this extra effort.You can circumvent this issue by having a trainedteam ready for the truck’s arrival, and inform yourcustomer or delivery location to do the same.6

freight accessorial fees:the complete guideresidential/limited accessResidential locations are those that are zoned bycarriers as “residential” rather than a business, evenif it’s a business run off of a residential property. Alimited access location is very open to interpretationdepending on the freight carrier, but generallyrefers to any location that can be difficult to getto during the business day. This can be due to oddhours, its physical location, security clearance,or any other number of factors. Types of limitedaccess locations include churches, prisons, schools,construction sites, military bases, and farms. Thistype of accessorial can be difficult to anticipate,since each carrier may be different, so it’s importantfor shippers to research how different carriers haveclassified each shipping location in the past.7

freight accessorial fees:the complete guideoversized/excessive lengthAs capacity tightens, carriers are trying to free upspace on available trucks by limiting large or difficultto-move shipments. Each carrier limits different sizesand lengths of shipments, and fee amounts vary upto hundreds of dollars. Certain carriers and terminalsmay prohibit shipments exceeding a certain thresholdcompletely. So, it’s important for shippers to doproper research into carrier tariffs, and check withlocal terminals to be absolutely sure you won’t havea missed pick-up, or hundreds of dollars of fees.8

freight accessorial fees:the complete guidecall before/appointmentfor deliveryThis type of fee is also commonly associated withresidential locations where someone may not alwaysbe available for delivery. If a carrier has to call andschedule a time that works for the consignee (deliverylocation), this extra step involving the delivery terminalwill cost extra. It may offset the inconvenience of amissed delivery, however, so the best thing a shippercan do is communicate with the delivery location tomake sure hours of operation are understood and verifya team will be ready. It’s important to note as well thata call before service must be noted on the BOL andinclude an accurate shipping contact and number.9

freight accessorial fees:the complete guidesort and segregationThese fees are most commonly associated with freightbeing delivered to grocers, distribution centers, andwarehouses and apply to shipments that require extrahandling by the driver at delivery. This can includeseparating different pallet items, transferring productinto storage, or racking in a warehouse, amongother requirements set in place by the warehouse.Once more, additional handling additional fees.It’s difficult to avoid this sort of fee, since it’s thenature of the business location, but being aware ofthe fee on the front-side will help set expectations.10

freight accessorial fees:the complete guideafter-hours pick-up/deliverySimilar to those places requiring appointments,if the shipment must travel to or from a locationthat operates outside of normal business hours, itwill require the carrier to make an extra effort tomake the haul. Just like the sort and segregationfees, this commonly affects grocer, distribution, andwarehouse locations since they prefer to receiveproduct before or after operating hours. Since it’sdifficult to dictate what hours these types of locationsoperate, shippers must be mindful that these typesof shipments incur fees with every freight carrier.11

freight accessorial fees:the complete guidestorage feesA storage fee is often unanticipated and may becompletely unavoidable, since it occurs mid transit.Most often, storage fees apply if a shipment is intransit, but must be held at a terminal because thedelivery location isn’t prepared to accept the delivery.This can occur because the consignee isn’t equippedwith the proper tools, a team isn’t ready to unload,or because they are simply refusing the freight.Usually, a carrier will assess a daily fee, depending onhow long the shipment must be held at the deliveryterminal. In order to avoid this charge, communicationwith the delivery location is a shipper’s first line ofdefense. Keep a good relationship with open dialogue,check in periodically, and be aware of shipmenttracking so that being unprepared is not an option.12

freight accessorial fees:the complete guidewhat are commontruckload accessorials?Truckload freight transport is an interesting servicetype comprised of regional and national carriernetworks. Because many of these transportationproviders are owner-operator lines, it’s really at thediscretion of that particular carrier if they charge foran accessorial and for how much. However, beingaware of what the common accessorial types aremakes it easier for shippers to keep costs down.13

freight accessorial fees:the complete guidedetentionBy and large the most common truckload accessorialfee, detention is a huge headache to carriers andhits shippers’ wallets the hardest. Typically, both theshipper and receiver are allotted two hours for loadingand another two for unloading their freight. Anythingbeyond that, and it’s up to the carrier to charge whatthey will, usually in an hourly fee. Detention can be aproblem for everyone involved, including any shipmentsthe carrier may need to pick up later on. If the truck isrunning late at a delivery, chances are, it will run latefor its next pick-up — creating a ripple effect that willdelay any other shipments down the line. The best wayto be sure you don’t accumulate detention charges isto have your experienced team ready and waiting toload or unload the truck. Work efficiently and quickly.Another tip — do not allow the carrier to check inuntil the start time you have given for your hours ofoperation. Sometimes, a carrier will arrive early, and ifthey are allowed to check in, the countdown has begun.14

freight accessorial fees:the complete guidedriver assistJust as in LTL shipments, a truckload carrier is simplyhired to securely move freight from one destination tothe other. In the event that a driver is asked to assistin loading or unloading the freight in any way, yourfreight bill will cost you more. This can be negotiatedeither before the shipment is picked up or encounteredat the time the driver arrives at the dock, but beaware the driver will be more likely to help out andbe lenient with extra fees if they know beforehand.15

freight accessorial fees:the complete guideTONU (Truck Order Not Used)Another common truckload accessorial, this fee occurswhen a pick-up is requested, terms are accepted, andthe request is then cancelled or called off. The timeallotted before a fee is assessed varies. Sometimes acarrier will charge right away, while others may givemore leeway. The fee amount can also vary, up tohundreds of dollars depending how far along the truckis in transit. If you are setting up the shipment andprocuring a carrier, it is critical to determine the freightis ready whether you are the pick-up location or not.Most TONU fees occur because of a misunderstandingor lack of communication between the shipperand whomever is arranging the transportation.16

freight accessorial fees:the complete guidediversion miles/additional stopsSometimes, a carrier may pick up a load and need tosplit the delivery between a few different locations.This type of move will often require additional feesimplemented by the carrier per stop. Most times,the fees are calculated on a per mile basis, thoughsome carriers may charge a set amount for eachstop on top of that. This type of haul should reallybe negotiated before the shipment is loaded androlling, so that the driver can best plan the routebeforehand and keep costs down. It’s importantto keep shipping paperwork and all Bills of Ladingclear so there are no mix-ups during deliveries.17