Moving goods involves more than just the cost of transport. Shippers must account for the total landed cost, which includes all expenses incurred throughout the supply chain journey. While the linehaul rate covers the basic movement of freight, supplementary fees often arise from other services or unexpected circumstances. These supplementary charges, known as accessorial charges, represent costs incurred beyond the standard service defined in the initial quotation. Understanding these charges is necessary for accurate budgeting and maintaining predictable logistics expenses.
What Are Accessorial Charges?
Accessorial charges are supplemental fees applied by a carrier to a shipper’s invoice. These charges are intended to compensate the motor carrier for performing specific, non-standard duties or for absorbing unexpected costs during the shipment process. The initial linehaul rate typically covers only the basic transportation from Point A to Point B under optimal conditions. Any deviation from this standard service, such as requiring extra time, specialized equipment, or additional labor, triggers an accessorial fee. The specific structure and pricing of these charges are governed by the carrier’s published tariff or the negotiated terms within a specific contract. Shippers should view these fees as legitimate compensation for work or risk that falls outside the standard scope of the carrier’s basic service agreement.
Why Carriers Apply Accessorial Fees
Carriers implement accessorial fees primarily to protect the economics of their operations. The trucking business relies heavily on the consistent utilization of both drivers and equipment to maintain profitability. When a truck or driver is delayed at a facility, that lost time translates directly into lost revenue opportunities. Fees for delays, therefore, act as a mechanism to recover the opportunity cost of this wasted time.
These charges also account for specialized services or risks that require the carrier to expend resources beyond the norm. Using a liftgate, handling hazardous materials, or performing inside delivery all necessitate additional training, equipment, or liability coverage that the carrier must recover. By separating these variable costs from the base rate, carriers can offer a more competitive linehaul price.
Categorizing the Most Common Accessorial Charges
Time-Related Charges
Time-related accessorial charges compensate the carrier when the vehicle waits beyond a designated free period due to the shipper or receiver. Detention is the most common fee, applied when a truck is held at a pickup or delivery location for too long. Most less-than-truckload (LTL) carriers offer 15 to 30 minutes of free time for loading or unloading, after which detention charges are assessed. For full truckload (FTL) shipments, the standard free time is generally two hours at both the origin and destination.
A Layover charge occurs when a driver is delayed so significantly that they cannot complete their delivery or pickup within the same business day, requiring an unplanned overnight stay. This fee covers the driver’s lodging, meals, and lost productivity. The Truck Order Not Used (TONU) fee is applied when a shipper cancels a confirmed pickup after the carrier has already dispatched the truck. Carriers charge a flat fee for TONU to cover the driver’s time, fuel, and lost opportunity.
Equipment and Handling Charges
Equipment and handling charges arise when the shipment requires specialized tools or extra physical labor at the point of service. The Liftgate Service fee is applied when the driver must use a hydraulic lift installed on the back of the trailer to raise or lower freight. This service is necessary when the pickup or delivery location lacks a loading dock.
Inside Delivery or Inside Pickup fees are charged when the driver must move the freight beyond the immediate loading dock or receiving area, such as into a warehouse or office space. Sort and Segregate fees are applied when a multi-piece shipment needs to be physically separated, counted, or organized by the driver before delivery to multiple consignees or specific receiving areas. Pallet Exchange fees compensate the carrier when they must provide a usable pallet in exchange for a damaged or non-standard one received from the shipper.
Administrative and Regulatory Charges
Administrative and regulatory charges address fluctuating external costs, legal requirements, or necessary changes to the shipment plan after dispatch. The Fuel Surcharge (FSC) is the most widely recognized accessorial charge, designed to account for the volatility in diesel fuel prices. This fee is calculated as a variable percentage or flat rate based on the current average price of diesel, ensuring carriers recover costs above a baseline fuel price included in the linehaul rate.
Fees for handling Hazardous Materials (Hazmat) are applied to dangerous goods shipments, covering specialized permitting, driver training, and increased liability insurance. Reconsignment or Rerouting fees are levied when the shipper changes the final delivery address while the shipment is in transit. Customs Brokerage Fees cover the administrative costs associated with clearing cross-border freight through customs agencies.
Proactive Strategies for Minimizing Accessorial Costs
Minimizing accessorial charges requires focusing on preventative measures taken well before the shipment is scheduled for pickup. A primary strategy involves establishing precise communication with the carrier regarding all service requirements at the time of quoting. Shippers must disclose non-standard needs, such as the necessity for a liftgate, inside delivery, or residential delivery, to ensure the carrier can include these in the initial rate and dispatch the correct equipment. Failure to communicate these requirements often results in failed pickups or costly redelivery attempts and subsequent fees.
Shippers must also ensure complete accuracy in describing the freight, including the correct National Motor Freight Classification (NMFC) class, weight, and dimensions. Inaccurate descriptions can lead to inspection fees or re-weigh/re-classification charges. Shippers with high volume should proactively negotiate specific clauses in their carrier contracts, such as securing extended free time for loading and unloading to mitigate detention risk. Improving the operational efficiency of facilities is also essential, as implementing staged loading processes, ensuring freight is prepared and labeled before the truck arrives, and assigning dedicated personnel for immediate check-in and out of drivers shortens dwell time and reduces time-related charges.
Auditing Freight Bills and Dispute Resolution
Once a freight invoice is received, a meticulous auditing process is necessary to ensure the legitimacy of every applied accessorial charge. Shippers must verify that the services billed were actually rendered and applied according to the contract or published tariff. This process involves cross-referencing the services requested on the Bill of Lading (BOL) against the charges listed on the final invoice.
Particular attention should be paid to time-related fees, such as detention. The shipper must verify the time stamps recorded by the driver against their own facility sign-in and sign-out logs. Discrepancies in arrival and departure times can often be the basis for disputing a detention charge. To formally dispute an accessorial charge, the shipper must submit a request to the carrier, usually within a short window specified in the contract, supported by clear documentation. Acceptable evidence includes the BOL with facility staff signatures and noted times, scale tickets, and internal receiving records, all of which demonstrate that the fee was incorrectly applied or calculated.