What Are Accessorial Charges in the Trucking Industry?

In the trucking industry, the cost of transportation is not limited to the base rate for hauling goods from one location to another. There are additional costs known as accessorial charges that can affect the final price of a shipment. These charges are added to the base rate for services beyond the typical transportation of freight. Understanding these extra fees is crucial for businesses and shippers, as it helps manage costs and avoid surprises.

Here’s a closer look at what accessorial charges are, how they work, and the most common types in the trucking industry.

What Are Accessorial Charges?

Accessorial charges are fees that carriers impose for additional services that are required or requested during the transportation of freight. These services go beyond the usual pick-up, transportation, and delivery, often adding value or accommodating specific customer needs, more info FleetCare Group.

While accessorial charges vary depending on the carrier, shipment type, and route, they typically cover extra work that is outside the scope of basic freight transportation. These fees are typically agreed upon before shipping but can sometimes come as an unexpected charge if they arise during transit.

Common Types of Accessorial Charges in the Trucking Industry

These charges are applied when additional services or special handling are required to complete a shipment.

• Liftgate Fees. Liftgate charges apply when a truck must use a liftgate to load or unload cargo from the vehicle. This is typically needed when the shipper or receiver doesn’t have a loading dock. The liftgate helps raise or lower heavy freight, adding both time and equipment costs to the delivery process.
• Fuel Surcharge. The fuel surcharge is a fluctuating fee that compensates carriers for the rising cost of fuel. It is typically based on the price of fuel at the time of the shipment. As fuel prices fluctuate, so does the surcharge, often calculated as a percentage of the base freight rate.
• Detention Charges. Detention charges are applied when a truck is delayed beyond the expected loading or unloading time. If a truck is held up at a loading dock, warehouse, or job site for longer than the allotted time, carriers may charge detention fees to compensate for the extended use of the truck and driver.
• Redelivery Fees. If a shipment cannot be delivered at the scheduled time due to reasons such as a closed location, incorrect address, or the consignee’s unavailability, the carrier may require redelivery. Redelivery fees cover the cost of sending the truck back to the location or attempting another delivery.
• Driver Assistance Fees. In some cases, the driver may be required to help load or unload freight. This can include tasks like palletizing, stacking, or assisting with specialized equipment. When this occurs, an additional fee may be charged for the extra labor required.
• Re-delivery or Re-consignment Fees. These charges apply when a shipment must be rerouted to a different destination, often due to an error in the original address, canceled delivery, or other logistical issues. Changing the destination or details of a shipment increases costs for the carrier.
• Storage Fees. Storage fees occur when freight is held at a warehouse for an extended period before it can be delivered. This can happen if the consignee is unavailable, or there are delays in delivery due to reasons beyond the carrier’s control. The carrier charges for storing the goods until they can be delivered.
• Tarping Fees. Tarps are used to protect cargo from the elements, such as rain, snow, or dirt. In cases where a load needs to be covered, the carrier may charge a fee for providing and placing the tarp. This fee can also apply if the shipment involves specialized equipment like flatbeds.
• Long Haul Surcharge. For shipments that travel long distances, carriers may apply a long haul surcharge to cover the additional fuel and labor costs incurred during extended transit times.
• Residential Delivery Fees. Residential delivery charges apply when freight needs to be delivered to a residential address instead of a commercial location. This is due to the additional time, effort, and potential for delays when navigating residential areas.

Always ensure that all potential accessorial charges are clearly outlined in your shipping agreement, so you can manage logistics efficiently and avoid surprises.

How to Avoid Surprises with Accessorial Charges

To avoid unexpected accessorial charges, it’s important to have a clear agreement with your carrier upfront. Here are a few steps to ensure smooth transactions:

• Ask for a detailed estimate. Before agreeing to a rate, request a breakdown of all possible accessorial charges.
• Review your contract. Ensure that all potential additional fees are outlined in your shipping contract, so you’re not blindsided by unexpected costs.
• Be proactive with scheduling. Plan for efficient loading and unloading times to minimize detention or redelivery charges.
• Communicate clearly. Keep the carrier informed about any changes in shipment details, including the delivery location and any special requirements.

By maintaining clear communication with your carrier and planning shipments carefully, you can minimize these charges and keep your transportation expenses predictable.