Your Guide To LTL Accessorial Charges | DTS

LTL Accessorial Charges
Your Guide To LTL Accessorial Charges | DTS

Less-than-truckload shipping offers a great alternative for businesses looking to send out smaller shipments, but if you’re shipping LTL, you might run into LTL accessorial charges. 

Nobody wants to be caught off guard by fees they weren’t expecting, so we’re here to tell you all about these charges, including some of the common ones you might encounter.

What are LTL accessorial charges?

Unexpected additional charges can be frustrating, but they’re common thanks to the unpredictable nature of the logistics industry. This is especially true when using LTL shipping, as carriers rely on a smooth journey to keep their costs down and maintain their schedule. 

Carriers use LTL accessorial charges to help recoup losses from unexpected delays. They do this by charging fees for extra services outside of the standard pick-up and delivery process. Carriers use historical operational data to determine exactly how much a delay will cost them and how much to charge to cover it. 

Why do these charges exist in LTL shipping?

One of the main reasons LTL carriers implement accessorial charges is to encourage alignment between them and shippers. LTL carriers need to be able to work efficiently to manage multiple loads, which means shippers should do their best to meet any given requirements. 

If your business is new to LTL shipping, knowing what types of accessorial charges to watch out for can help you save money. Just remember that every LTL carrier will set different accessorial charges, which will vary depending on the type of delay they face. 

Why are these charges more common in LTL shipping

FTL carriers may also implement accessorial charges when they are faced with additional tasks during the shipping process, however it is much more common with LTL shipping. This is because FTL carriers do not have to manage multiple deliveries with one truckload, so they are not as concerned with delays throwing off their delivery estimates.

8 common LTL accessorial charges

There are several reasons an LTL carrier may implement accessorial charges. Each reason will come with a different price depending on its potential impact on their schedule. The most common LTL accessorial charges include:

  1. Advance notification — Businesses may request that the driver notify them before they depart for their location. If the driver cannot quickly contact the receiver, this can cause delays.
  2. Appointment required — Some businesses may not always have a team on hand to take in a delivery. In these situations, they will often schedule specific times for carriers to arrive. This means that LTL carriers must plan their schedule around that one business, which will incur an accessorial charge.
  3. Detention - The carrier will allocate a set amount of time for a delivery to be made, including unloading times. If, for any reason, this amount of time needs to be extended and the truck cannot leave on schedule, it is referred to as a detention. Accessorial fees for detention vary depending on the severity of the delay.
  4. Guaranteed delivery - This is a type of expedited LTL service where shippers are given a shorter and more accurate delivery timeline.
  5. Inspection - If the weight or class of your freight does not match up to the bill of lading, the carrier will have to reinspect it. This will incur additional charges for the change in weight and/or classification, as well as an accessorial charge for the inspection. 
  6. Lift gate - If your delivery location doesn’t have a loading dock expect an accessorial charge for a truck with a lift gate and for additional handling. 
  7. Oversize/overlength - There are accessorial charges for any load that is larger than the allocated space given by the LTL carrier as it reduces the number of shipments they can carry.
  8. Truck order not used (TONU) - TONU refers to a situation where the truck driver is unable to complete the delivery due to an issue with the recipient, resulting in wasted time for the carrier.

DTS can help you understand

There is a lot to consider when using LTL shipping and many reasons why a business may face LTL accessorial charges. This is why we have a wide range of articles on the DTS blog to help you understand LTL shipping before you enter negotiations. 

Plus, partnering with shipping professionals like DTS can help businesses reduce the risk of facing accessorial charges. Contact us today to see how we can help.

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