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LTL accessorial fee mistakes are not uncommon. Unexpected accessorial charges for LTL services performed by freight carriers can be costly. You cannot prevent all of these charges, but you can take steps to reduce them. Let’s discuss some commonly charged LTL accessorial fees and how you can avoid them.
Table of contents
Limited Access Fee
Carriers can assess charges on both commercial and non-commercial delivery sites. Limited access locations that have not been specified when the shipment was booked may be designated as limited access by the driver, resulting in a billing adjustment. Examples of limited access points may include construction sites, schools or universities, churches, hospitals, doctors’ offices, and small strip malls.
The best way to prevent this charge is to have a third-party freight broker add this limited access shipping service to the BOL beforehand. This keeps unexpected costs down for everyone.
- FedEx 2021 Cost: $161 per shipment
- (includes construction sites, mine sites, churches, schools, etc.).
This occurs if the carrier cannot make full delivery on a date initially set to deliver and will attempt delivery a second time. Therefore, document the following on the BOL upfront if either the pickup or dropoff location is a limited access location.
- Unavailable during normal business hours
- Behind a secure gate
- Include as much information as you can to the carrier upfront.
- FedEx 2021 Cost: $15.66 per hundredweight
- $157 minimum charge
- $1,638 maximum per shipment
Non-Commercial Delivery (RESIDENTIAL PICKUP OR DELIVERY)
One of the most common LTL accessorial fee mistakes we see is an unexpected residential delivery fee. The carrier allocates charges when the pick-up or drop-off is in any of the following locations: residential areas (including businesses in residential areas, schools, airports, construction/utility sites, military bases, storage facilities, hotels, etc. To avoid this cost, use a provider who does doorstep deliveries and identifies the charges beforehand.
- FedEx 2021 Cost: $152 per shipment
Hazardous Material Fee
Shipping hazardous materials cause extra paperwork and added risk. Therefore, the carrier charges for. This includes perfumes, lithium batteries, phones/ laptops, fertilizers, pesticides, and compressed oxygen. Ask for Material Data Safety Sheets from suppliers. As a result, this will help you know how to handle this type of material.
- FedEx 2021 Cost: $37 per shipment
Another LTL accessorial fee mistake to consider is a lift gate fee. This fee arises when the carrier needs special equipment to make a delivery. Enquire what facilities will be required for proper shipment and notify the carrier of the kind of equipment required before time. Avoid re-delivery fees by knowing that not every trailer possesses a lift-gate, ensuring you have the right equipment.
- FedEx 2021 Cost: $10.39 per hundredweight
- $154 minimum charge
- $506 maximum charge
Weight Inspection Fee
If the carrier suspects that your freight’s weight or classification is incorrect, they charge a fee to reweigh and/or re-class the shipment. For this reason, enter accurate weights and descriptions (including NMFC item numbers when available) into your bill of lading.
- FedEx 2021 Cost: $30 validation fee
- Applies if the weight difference is 50 lbs. greater or 200 lbs. less than the stated weight on the Bill of Lading.
Inside Delivery Fee
Lastly, we will consider inside delivery fees. The carrier would assess this if they were required to go inside (past the front door or loading dock) to pick up or deliver the freight.
- FedEx 2021 Cost: $14.07 per hundredweight
- $148 minimum charge
- $1,487 maximum charge
Reduce your LTL and Small Parcel Costs
LTL accessorial fee mistakes can hurt a company’s bottom line. Contact us at Refund Retriever if you are an LTL shipper and looking for ways to reduce shipping expenses. The cost of transportation impact on your company is more relevant than ever. When is the last time someone in your company took a single package and explored a full audit shipment?