Accessorial Charges 101

But when you negotiate your rates for a load, it's not always as simple as charging a per-mile rate. Accessorial charges compensate you for the things that affect how productive you are and how much extra work it takes to get the job done.

A lot of carriers have a schedule of charges for special services or accessorial charges. When the shipper knows that they'll pay extra for these services, they're more likely to value the time and work that you put into delivering their freight.

Freight Rules Tariff

When you hear the word tariff, you might think of a tax on imported or exported goods. But in this context, it means a schedule of charges.

Many freight carriers publish a Rules Tariff that covers rules, regulations, and charges for their services.

A Rules Tariff serves as a guide for negotiating shipping terms and freight charges. It spells out how much they charge for services and what the carrier can and can't do for the customer.

A common Rules Tariff includes things like:

  • Liability limits
  • Definitions and abbreviations 
  • The specific meanings of terms like "normal business hours", "consignor", and "consignee" 
  • Meaning of abbreviations like "BOL", "COD" and "NMFC"
  • Freight classification and rates
  • Fuel surcharges
  • Charges for accessorial services

The rates in a Rule Tariff are list prices. The carrier may offer discounts for volume, dedicated lanes, or other arrangements.

A Rules Tariff includes a section for accessorial charges. It spells out under what condition the carrier charges the fee and how much.

Most common accessorial charges

Fuel Surcharge

A fuel surcharge helps cover the costs of seasonal and regional variations in diesel costs. It's a percentage that is normally based upon the U.S. Energy Information Administration Diesel Fuel Index. It's more included when you are working with direct freight or dedicated lanes, and less common when you are working off of the spot market.

Advanced Notification

Sometimes the consignee doesn't need the carrier to make an appointment for delivery. Still, they need to plan production and want to get a heads-up that the freight is out for delivery. 

In this case, the shipment may have a charge for advanced notification. Most carriers charge about $50-$60 per shipment.

Hold At Terminal

Sometimes it's more practical to deliver to a third-party location for the customer to pick up. 

You'll likely need to include an Advance Notification charge as well.

Be sure to communicate the details to your customer:

  • The name of the company that runs the terminal.
  • Will-call hours, or when they're open.

Holding facilities charge per day, so it's best if your customer can pick up the same day or the next day.

Detention

If a pickup or drop-off location delays your truck for too long, you might charge a detention fee. You can expect load or unload time to take up to 2 hours, and it's common practice to only charge detention if it takes longer. Most carriers charge $50 to $100 per hour. Some distribution centers and warehouses are notorious for taking 12 hours or more to load or unload a truck. That's why some owner-operators and small fleet owners avoid them altogether. 

Layover

If you're delayed at shipper or consignee for more than a day, you may want to include a layover charge. It's similar to detention charges except for the timeframe. You charge detention by the hour and the layover per day.

Truck Ordered Not Used (TONU)

If a shipper needs to cancel, they should give you enough time to allow you to find a replacement load. 

Establish a cutoff time in which the shipper can cancel without extra charges. Most carriers charge $150-500 for TONU.

Driver Assist and Lumper Fees

Some locations may require the driver to load or unload freight or assist in loading or unloading. Otherwise, the driver may have to hire a lumper. 

You may want to include the cost of driver labor or lumper costs in your freight rates.

Additional Stops

Loads with more than one pickup or delivery stop take extra time. They often mean more work for the driver as well. Fees for extra stops compensate for productivity loss.

Bill of Lading (BOL) Correction Fee

In case you don't get the correct bill of lading (BOL) at the pickup location, you may want to quote a correction fee. Carriers charge between $10 and $100. They may charge more for multiple corrections.

Hazardous Materials

Goods that have the potential to harm people or the environment if not handled properly are categorized as hazardous materials or hazmat.  Carriers usually charge a flat fee between $100 to $250 for hazmat shipments. 

The shipper needs to provide MSDS sheets for hazmat shipments. It's also the shipper's responsibility to provide the proper placards.

Overweight or Oversize

Some freight requires permits because of excess weight or size. You pass the costs of permits on to the customer.

Restacking

Some warehouses require pallets to be stacked a certain way so that they fit on the racks. If the shipper stacks differently, the driver may have to restack or hire a lumper. A restacking charge compensates for the driver's labor or lumper expense.

Liftgate

At delivery locations where there's no delivery dock, and a forklift isn't available, a truck with a hydraulic lift gate will need to make the delivery.

 It usually costs $5-11 per hundred lbs. Many carriers have a minimum charge of  $100-150.

Customers that need a liftgate might also need other accessorial services such as residential or inside pickup and delivery.

As a matter of good customer service, you should discuss whether any other services will be needed and what they cost.

Inside Delivery

This charge applies when you need to move the freight somewhere in a building besides a dock. When you provide inside delivery, there’s the risk that the customer might claim that you caused damage to walls, doors, furniture, and such.

Some carriers charge more if the driver has to use an elevator.

If you have to break down a skid to make an inside delivery, you might want to charge extra for that also.

Carriers usually charge between $10-15 per 100 lbs. Minimum charges are usually about $100-150.

After-Hours Delivery

Not all carriers charge for delivery outside of what's considered normal business hours. Whether you should charge for after-hours depends on your business model.

If you find that after-hours delivery interferes with keeping your truck or fleet moving, the extra charge might make sense. 

Limited Access Fee

Limited access locations tend to cause driver delays. Such locations include:

  • Construction sites.
  • Oil or natural gas fields.
  • Mines and quarries.
  • Carnivals and fairs.
  • Schools without a dock.
  • Medical facilities without a dock.
  • Military bases.

You may want to take the loss of productivity into account when quoting freight operating in such locations.

You can set the criteria for what counts as limited access. Generally, carriers include places that:

  • Aren't open to walk-in traffic during normal business hours
  • Don't have people readily available to receive the freight
  • Don't have a dock or platform for unloading
  • Need the driver to stop at several security checkpoints

You might charge limited-access fees for farms and ranches. Because they‚Äôre often in remote places far from the interstate, they tend to slow productivity. 

Trade Show Pickup or Delivery

Companies that are participating in a trade show often ship their booths and promo materials by truck. 

Setting up and closing down trade shows tend to be chaotic, and you may want to charge for the extra work.

To make trade show shipping go smoothly, have the shipper include vital info on  the bill of lading:

  • The physical address, even if it's a well-known exhibition center
  • Name of the trade show - some venues host more than one at the same time
  • Booth number and the name of the display
  • Point of contact name and phone number

Over-Length Fee

Over-length or oddly-shaped freight can cause problems with LTL and consolidated shipments. It can interfere with the other shipments on the trailer.

You may refuse over-length shipments if you can't transport them safely and securely.

Driver Clean

Some shippers deal with freight that leaves residual material in a trailer. This may require cleaning before the trailer can be used to haul freight again. You can cover the cost of labor with a cleaning charge.

If you're dealing with a shipper that's known for this kind of freight, you might just take the cost of cleaning into account when you quote the shipping rate instead of adding an accessorial charge.

Product Disposal

At times you will have to deal with freight refused at the consignee. They might refuse because of damage, overage, wrong product, or a number of other reasons. Some shippers may have you return the freight, but a lot of times it's too costly. A disposal charge would cover your costs to drive to a disposal facility and any dump fees you might have to pay.

Redelivery

If you arrive for delivery at your appointment time or within your delivery window and the consignee is unable to receive it, you might charge a redelivery fee. This compensates for the productivity lost by having to return at a later time.

Residential Pickup and Delivery

When you pick up or deliver freight at a location that's zoned residential, navigating is more complex than delivering to a business zone. It might make sense to charge extra to deliver to these areas.

You could charge it as a flat fee -- around $150 is common, or by weight. For example, one carrier charges $5.50 per hundred pounds with a $75.00 minimum.

Reweigh and Reclassification

Less-than-truckload (LTL) shipments charge by Freight Class or NMFC codes. If the shipper misclassifies the freight, you might charge them for the corrections.

Cash On Delivery

Cash on delivery or C.O.D. is more common with parcel and less-than-truckload freight than with full-truckload. It's when the payment for goods is due upon delivery and the driver collects the funds on behalf of the shipper.

Usually, carriers charge 6%-8% of the amount collected, with a minimum of around $100-$150.00.

Planning Ahead

Before bidding on and agreeing to a load, it's important to get the details of the shipment from the broker or shipper.  Where are the pickup and drop-off locations?  How far are the actual locations from the major cities typically shown on the loadboard?  What types of facilities are they? What type of freight are you working with, and what is the weight of that freight? How many stops are there?

This information will help you better anticipate and manage accessorial charges.

Conclusion

Your time is valuable. It's a lot more pleasant to serve clients who value your time and the effort it takes to handle their freight. Accessorial charges communicate the value of your time and effort.

The shipper, of course, wants to keep costs down, so they will usually put in their best effort to avoid unnecessary charges.

You might also be interested in these articles:

Calculating Your Cost Per Mile

How to Get the Best Freight Rates