Accessorial Charges
What are Accessorial Charges?
Accessorial Charges are additional fees applied by carriers for services that go beyond the standard pickup and delivery typical in freight shipping. These can include charges for residential delivery, inside delivery, liftgate service, and extended storage.
Why are Accessorial Charges applied?
Accessorial charges are applied to cover the costs associated with providing additional services that require extra labor, specialized equipment, or extend beyond standard transportation and delivery efforts. They ensure that carriers are compensated for the full range of services they provide.
Common types of Accessorial Charges
Common types of accessorial charges include fuel surcharges, after-hours delivery fees, setup or installation fees, and charges for handling hazardous materials. Each of these services involves additional risks or complexities that justify the extra fees.
How can shippers minimize Accessorial Charges
Shippers can minimize accessorial charges by thoroughly planning their shipping needs to align closely with carrier capabilities and by avoiding unexpected services. Providing complete and accurate shipping information and understanding the specific requirements of each consignment can also help avoid unnecessary charges.
Impact of Accessorial Charges on shipping costs
Accessorial charges can significantly increase the total cost of shipping. Being aware of these potential fees and planning for them can help businesses budget more accurately and avoid surprises in their logistics costs.
Negotiating Accessorial Charges with carriers
It may be possible to negotiate accessorial charges with carriers, especially for businesses that have a high volume of shipments or long-standing relationships with their carriers. Discussing specific needs and potential discounts or bundled services can lead to more favorable shipping terms.
