Handling Charge

A handling charge is a fee added by carriers, warehouses, or logistics providers to cover the labor and equipment used in processing freight.

Examples: Palletizing freight, shrink-wrapping, or moving goods within a warehouse.

Advantages: Compensates providers for extra time and resources beyond transportation.

Challenges: Adds hidden costs for shippers, often appearing as line items on invoices.

Real-world example: LTL carriers commonly add handling charges for freight requiring special care, such as fragile items.

Explain like I’m five: It’s like paying someone extra to carry your groceries to the car.

FAQ: Can handling charges be waived? Sometimes, if negotiated in contracts or with high-volume customers.

Bottom line: Handling charges help logistics providers cover costs, but shippers should monitor and negotiate them.