GLOSSARY
Accessorial Charges
Accessorial charges are a common yet often misunderstood aspect of freight shipping. For freight forwarders, understanding these additional fees is crucial for accurate pricing, avoiding disputes, and maintaining strong relationships with clients. Below, we’ve answered the most frequently asked questions about accessorial charges to help you navigate this key aspect of logistics.
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What are accessorial charges in freight shipping?
Accessorial charges are additional fees applied to freight shipments for services beyond standard pickup and delivery. These services might include things like inside delivery, liftgate service, detention fees, or fuel surcharges.
Why are accessorial charges applied?
These fees account for extra work, equipment, or time required to handle specific needs during transportation. For example, if a driver must wait longer than the allotted time during loading or unloading, detention fees may apply.
What are common examples of accessorial charges in freight shipping?
- Detention Fees: Charges for delays during loading or unloading.
- Inside Delivery: Costs for delivering goods inside a building rather than to a loading dock.
- Liftgate Service: Fees for using a liftgate to move freight off the truck.
- Fuel Surcharge: An additional fee to account for fluctuating fuel prices.
- Residential Delivery: Charges for delivering to residential addresses instead of commercial ones.
How can freight forwarders manage accessorial charges?
- Know Your Contracts: Review carrier agreements to understand which accessorial fees may apply.
- Communicate with Clients: Clearly outline potential accessorial charges to avoid surprises.
- Provide Accurate Information: Give detailed shipment instructions to minimize unexpected fees.
Can accessorial charges be negotiated?
Yes, many carriers allow for the negotiation of accessorial charges, especially if you have a strong business relationship or high shipping volume. It’s worth discussing these fees during contract negotiations.
How can technology help manage accessorial charges?
Using a logistics platform like the Magaya Digital Freight Platform can help freight forwarders track, manage, and forecast accessorial charges. Automated workflows ensure transparency and minimize billing errors, which can strengthen client relationships.
Accessorial charges might seem like a small detail, but they can significantly impact your bottom line if not managed properly. By understanding these fees, communicating effectively with carriers and clients, and leveraging technology, you can better handle accessorial charges and improve operational efficiency.
Ready to digitize and modernize your shipping operations?
See how Magaya can help.