Are you a shipper who is new to the world of freight transportation? Do you know what LTL Accessorial Charges are and how they can impact your bottom line? Accessorial LTL charges are fees added to a freight shipment that go beyond the standard cost of transportation. These charges can be difficult to understand and may seem overwhelming, especially if you are not familiar with them. We will discuss a variety of accessorial charges, including the LTL Accessorial Charges, that you may encounter when shipping freight. We will provide insights into how these charges work, when they may apply, and how to negotiate them with your carrier. So, whether you are shipping hazardous material or require a lift-gate at your delivery location, this blog will provide you with the knowledge you need to navigate the complex world of accessorial charges.
Common Accessorial Charges You May See:
Fuel Surcharge (FSC): Every carrier freight tariff has one negotiated in it. How it works is whatever the U.S. diesel average cost is per week, the carrier will put a percentage of cost onto that. This is negotiable in that you can negotiate what the percentage of that fuel surcharge fee is going to be.
Notify Charge/Appointment Charge/All Before Delivery Charge: All charges surrounding appointments – each are slightly different but essentially the same.
Documentation Charge: This means you are still in a paper environment – this should no longer apply to you as you should be in a digital environment with your carrier. If your carriers have to send you a paper version of an invoice and you request that the bill elating and the POID be attached to that invoice, they are going to charge you a documentation fee to do it.
Weight and Inspection (W+I): This will be listed on the invoice when it comes over – what weight and inspection does is they reweigh your shipment when it arrives, and if it does not match what the original invoice shows, they are going to send you a new invoice with the new weight, and they are going to charge you a flat fee just because they had to perform the weight and inspection. Freight class also falls under this area of weight and inspection.
Less Common Accessorial Charges:
HAZMAT: If you are shipping hazardous material, you are going to get hit with a flat HAZMAT fee. The key to this is how much HAZMAT you are shipping – this should be a negotiation rather than waving a fee, as the carrier will hit you in freight costs.
Lift-Gate: If you ship to a customer who does not have a dock you are going to need a lift-gate – this is a flat fee and can be negotiable.
Sort and Seg: An additional fee you are going to pay in the event that the customer requires the driver to break down boxes or shipments and put them in order. It will either be cost by case or cost per hundredweight charge.
Lumper Charge: Often associated with sort and seg – the customer has their own staff to do the work of sort and seg but they bill the carrier for it and then they bill you.
California Compliance Surcharge: It is a new mandated charge that can be from 5$ to 15$ – if you do not have a lot of it you should wave it and if you do then negotiate.
Understanding LTL accessorial charges can be a daunting task, but with the right knowledge and guidance, you can reduce costs and streamline your freight transportation process. If you want to learn more about LTL accessorial charges and how they can affect your business, don’t hesitate to reach out to FreightPlus. Our team of experts is always ready to help you navigate the complexities of the transportation industry and find the best solutions for your shipping needs. Contact us today to get started!
LTL Negotiations White Paper
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The goal of any Less-Than-Truckload (LTL) negotiation is to source carriers that will provide great service to your freight, your facilities, your customers, and your suppliers at a fair market price.
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