Accessorial Charges
Accessorial charges are extra fees that carriers apply for services beyond standard pickup and delivery.
Examples: Detention occurs when a driver waits longer than the free time allowed at a dock. Liftgate charges apply when freight must be lowered using a liftgate at a location without a dock. Inside delivery fees are added when freight must be moved into a building rather than dropped at the curb.
Advantages for carriers: They ensure carriers are fairly compensated for unexpected delays or additional effort, and they encourage shippers to run efficient docks.
Challenges for shippers: Accessorial charges are often unpredictable, making cost management more difficult, and frequent disputes over charges can strain relationships with carriers.
Real-world example: Walmart and Target negotiate contracts up front to cap or waive accessorial fees. Suppliers who fail to comply with appointment times often face detention charges.
Explain like I’m five: Ordering a pizza comes with a base price. If you want extra toppings or delivery to your room upstairs, you pay extra. That’s what accessorial charges are in shipping.
FAQ: Can accessorial charges be negotiated? Yes. Many can be capped, waived, or pre-defined in contracts.
Bottom line: Accessorial charges can add up quickly. Shippers who plan their docks well, reduce wait times, and negotiate terms in advance can save significant money.