Understanding Freight Accessorial Charges: What You Need to Know

In the logistics and freight industry, accessorial charges are fees applied for services or requirements that go beyond the standard shipping process. These charges are typically associated with unusual requests, changes, corrections, or any factors that affect the service times, processes, or delivery costs. With the increasing demands from online shopping, driver shortages, and fluctuating fuel costs, shipping companies are under pressure to deliver more products in less time. To optimize their resources, they implement accessorial charges for services that deviate from the norm.

As a manufacturer, our goal is to help our distributors manage these costs effectively by being transparent with their customers and educating them on how to avoid unnecessary fees whenever possible.

Common Accessorial Charges

Here are some of the most frequent accessorial charges our customers encounter:

1. Lift Gate

• If a loading dock isn’t available for unloading palletized loads, a lift gate is necessary to safely lower the goods from the truck.
  • Important Note: Depending on the carrier’s policies, having a forklift on site may not eliminate this charge. The driver may still need to move the freight to the back of the trailer for unloading, which can incur additional costs.

2. Address Correction / Bill of Lading Correction

• Mistakes in the address can lead to wasted time and fuel, especially if the driver goes to the wrong location. Even if caught early, correcting these errors requires reprocessing, new labels, and possibly rerouting the shipment (maybe even via a different carrier if it is no longer located in the carrier’s territory).

3. Residential Delivery

• Delivering to homes or apartment buildings often involves navigating challenging residential areas, requiring additional handling and special services.

4. Inside Delivery

• When the driver is required to bring the product inside a building, additional services like using a pallet jack or dolly may be necessary, resulting in extra charges.

5. Limited Access Fee

• This fee is often charged for deliveries to locations where access is challenging for a full-size semi-truck. Examples include:
  • Schools, Government Facilities, and Prisons: These locations may require security checks, specific delivery procedures, or locating a specific consignee, which can add time to the delivery process.
  • Restaurants and Bars: Many of these establishments are in densely populated or urban areas with limited space for maneuvering large vehicles, leading to potential delays and additional handling requirements.
  • Dealerships: Automotive dealerships often have limited space and specific delivery windows, which can complicate the delivery process and result in additional charges.
  • Churches and Places of Worship: These locations may have restricted access or delivery times, especially during events or services, necessitating special arrangements.
  • Other Locations with Limited Access: Any delivery location that poses challenges due to narrow streets, lack of loading docks, or restricted delivery hours may incur this fee. This includes residential neighborhoods, construction sites, and certain retail locations.

Tips to Avoid Additional Accessorial Fees

Unexpected charges can be frustrating, especially when they appear after the customer believes they have paid in full. We understand this concern and are here to help you minimize these fees through careful planning and proactive communication.

Here are some simple yet effective steps to help avoid these additional charges:

1. Ask the Right Questions

• Confirm whether the customer has a loading dock. If not, include the lift gate requirement in your purchase order. While this won’t eliminate the charge, it will help you inform your customer ahead of time, increasing the likelihood that you can recover the cost.

2. Validate Addresses

• Use address validation tools to ensure accuracy, such as those provided by UPS or other free online tools. Pay close attention to details like street suffixes (e.g., Street, Road, Avenue) as well as if the business has a suite number. Incorrect information can lead to costly errors.

3. Double-Check Data Entry

• Accurate data entry is crucial. Simple mistakes in spelling or numbers can lead to significant issues.

4. Verify Shipping Information

• Regularly confirm shipping details with your customers, even if they are repeat buyers. The United States Postal Service occasionally updates zip codes, so it’s essential to ensure your records are current.

5. Provide Complete Information

• Including as much information as possible on your purchase order is key. At a minimum, ensure you have a receiving contact’s name, phone number, or email address. This helps reduce the back-and-forth with carriers, streamlining the delivery process.

By taking these steps, you can significantly reduce the likelihood of incurring unexpected fees and ensure a smoother, more cost-effective shipping process. While we cannot control if or when a shipping company imposes additional charges, we can work together to make sure accurate information is provided from the start. This collaboration will lead to a more efficient and budget-friendly delivery experience for everyone involved.

 

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