Cloud-Based Freight Management System for Shippers
Managing shipping costs is a critical challenge for your business when you rely on LTL freight. Unexpected accessorial charges can quickly erode your margins if you're not prepared. These fees are associated with any additional service(s) required to handle your freight, and they can add up fast if you don't know what to expect.
How can you accurately estimate and prepare for the overall cost to ship your freight? Understanding which accessorial fees are commonplace is the first step. In this blog post, we'll walk you through the 10 most common LTL shipping accessorial charges you're likely to encounter and how to avoid them.
BOL correction fee
The BOL or Bill of Lading is a document that serves as a receipt of services regarding the goods that are being shipped. This is a legally required contractual agreement between you and the carrier, and it contains a variety of information regarding the shipment that is useful for both parties. If the goods listed have changed in any way after the pickup has happened or if the BOL contains other incorrect information, there is usually a charge that you are responsible for.
For the most part, avoiding BOL correction fees is rather simple. Simply ensure that the information listed on the BOL matches correctly to the goods, it specifies the proper freight class, purchase order numbers are written out clearly, and all parties' contact information is listed.
Excessive length fee
Standard shipment length is something that is determined by the carrier and therefore it can vary from one freight carrier to the next. However, the overall shipment length is usually set at 10 foot and anything over that length is generally considered to be excessive length and will incur a fee.
When negotiating your base rate, ask about the shipment length and the cost per foot if in excess.
After hour delivery and/or pickup fee
Most freight is delivered between 8 am and 5 pm, Monday to Friday. Deliveries are commonly done in the morning and pickup is usually done before 1 pm. Any time a delivery or a pickup falls after the standard 8 am to 5 pm window, you will more than likely be charged a fee.
Most of the time you will also incur a fee for pickups that occur after 1 pm.
Inside-delivery and/or pickup fee
Anytime your carrier has to locate cargo (as in the cargo is located somewhere other than at the loading dock) it might cost you.
Carriers rely upon timely deliveries and anything which slows down the standard pickup and/or delivery has the potential to bring on additional charges.
To minimize this cost, ensure that you have the shipment waiting for your carrier at the loading dock or directly next to the dock prior to the scheduled pick-up time. If it is a delivery that they are dropping off, simply make sure that there is someone at the loading dock to receive the delivery as scheduled.
Notification fee
Notifications of upcoming deliveries are typically not a free service.
Anytime a carrier is requested to contact or otherwise notify a consignee before delivery, it costs time and money. This is reflected as a charge that the receiver will be responsible for and this charge varies from carrier to carrier.
Sorting fee
This common accessorial fee is usually associated with products that need to be shipped according to the brand, flavor, length, material, or other distinctive characteristics. While this may help with the loading and unloading of the cargo and may even be required by law depending on the type of product, it will add to the overall cost to ship it via LTL.
Limited access fee
Security gates and facilities which have security or limited access are likely to receive what is known as a limited access fee. The most typical places where these fees occur include schools, prisons, construction sites, government offices, military bases, and other generally difficult-to-access areas.
Weight inspection fee
Weight and inspection fees occur when there are problems with the BOL.
Again, it is important to inspect your goods, inventory list, and BOL prior to shipment. Not only does a discrepancy incur a BOL correction fee, but there is also a weight and inspection fee that will be charged on top of it.
Private or Residential Delivery
This fee is charged to any delivery, which is to a private or residential address. This fee is most commonly seen when the carrier is delivering a shipment to a residential construction site. However, it also gets charged if the delivery is to an area in which the carrier is on private property.
Hazardous Cargo Fee
Any shipment of chemicals will gain this fee.
This is true for certain cleaners, industrial machine lubricants, and even chlorine. As these materials require registration and special handling, it is important to know which materials should be listed as hazardous since there are going to be charges associated with any hazardous materials you ship.
Final Thoughts
Understanding the common fees associated with LTL freight is the first step in maintaining accuracy in your quotes. And while this list is a good place to start, it is by no means a comprehensive one as there are other accessorial charges that you may run into.
The best way to avoid any surprise accessorial fees is to be as transparent as possible with your carrier and to audit your freight invoices consistently. By doing so, you will get base quotes closer to the actual cost of shipment as they will be able to determine upfront what is going to be required to move your shipment and what that looks like in terms of accessorial charges as well.
FAQs
What are LTL accessorial charges?
LTL accessorial charges are extra fees added when a shipment requires services beyond standard dock-to-dock pickup and delivery. Common examples include BOL corrections, inside delivery, limited access stops, hazardous cargo handling, and residential delivery. These charges can raise the total shipping cost quickly, so they should be considered when estimating the real price of an LTL move.
What are the most common LTL accessorial charges shippers run into?
The most common LTL accessorial charges include BOL correction fees, excessive length fees, after-hours pickup or delivery fees, inside pickup or delivery fees, notification fees, sorting fees, limited access fees, weight inspection fees, residential delivery fees, and hazardous cargo fees. These are the fees most likely to show up when a shipment needs extra handling or special access.
How can you avoid BOL correction fees on LTL shipments?
You can avoid BOL correction fees by making sure the Bill of Lading matches the freight exactly before pickup. The freight class, purchase order numbers, and contact information should be accurate and clearly written. If the goods change after pickup or the BOL contains incorrect details, the carrier will usually charge a correction fee.
What counts as an inside delivery or pickup fee in LTL freight?
An inside delivery or pickup fee applies when the carrier has to move cargo somewhere other than the loading dock. If freight is not ready at the dock, or if delivery requires extra time and effort to locate or place the goods, the carrier may charge more. Keeping freight at the dock and having someone ready to receive it helps reduce this fee.
When does a shipment trigger a limited access fee?
A shipment usually triggers a limited access fee when the pickup or delivery location is difficult to access or has security restrictions. Common examples include schools, prisons, construction sites, government offices, military bases, and other gated or restricted facilities. These locations slow the normal freight process, so carriers add a fee for the extra time and effort.
Why do LTL carriers charge hazardous cargo fees?
LTL carriers charge hazardous cargo fees because certain materials require special handling, registration, and oversight. Chemicals, some cleaners, industrial machine lubricants, and chlorine can fall into this category. If hazardous materials are shipped without being properly identified, the carrier may assess additional charges tied to the handling requirements.
How can shippers reduce surprise accessorial charges on LTL freight?
Shippers can reduce surprise accessorial charges by being transparent with the carrier and auditing freight invoices consistently. Accurate shipment details help carriers quote the likely services upfront, which makes base rates closer to the actual cost. Reviewing invoices also helps catch charges that do not match the shipment conditions or paperwork.
