Understanding LTL Shipping Fees & Cost Reduction Tips

Introduction to LTL Freight and Accessorial Charges

Less Than Truckload (LTL) shipping is a cost-effective method for transporting goods that do not require a full truckload. However, many shippers often find themselves facing unexpected accessorial charges, which can significantly increase transportation costs. Understanding what these extra fees entail is crucial for any business relying on LTL carriers.

Common Accessorial Charges in LTL Shipping

Accessorial charges are additional fees that arise based on specific handling requirements or services that exceed the standard freight charges. Some common types of accessorial charges include:

• Liftgate Service: This fee applies when a liftgate is needed for loading or unloading goods, typically when the pickup or delivery location does not have a loading dock.

• Residential Delivery: Deliveries made to residences usually incur extra fees, as they often involve more complex logistics compared to business deliveries.

• Sorting and Segregation: This charge is levied for separating a shipment into multiple deliveries, which is common in multi-stop or consolidated loads.

• Reweighing: If the freight weighs more than declared, carriers may charge additional fees for reweighing and adjusting the bill of lading accordingly.

Strategies to Avoid Unnecessary Charges

To mitigate the impact of accessorial charges on your shipping budget, here are several effective strategies:

1. Accurate Weight and Dimensions: Ensure you provide precise weight and dimensions of your cargo. Inaccuracies may lead to reweighing fees and higher shipping costs.

2. Understand Your Carrier's Policies: Familiarize yourself with the specific fees associated with the carriers you choose. Each carrier may have different charges, so knowing them can help you avoid surprises.

3. Use Technology: Utilize transportation management systems (TMS) to track shipments, manage your freight efficiently, and forecast accessorial charges.

4. Opt for Standard Delivery Locations: Whenever possible, select business addresses equipped with loading docks to avoid residential delivery fees.

Implementing these strategies can enhance line-item estimates and failure to understand pricing structures can lead to increased shipping expenses.

Conclusion: Mitigating the Impact of Accessorial Fees

Understanding the various extra fees associated with LTL shipping and actively implementing strategies to avoid them is essential for any business. Being informed about accessorial charges not only helps in budgeting accurately but also streamlines logistics processes, allowing companies to focus on growth and efficiency. By paying close attention to weight accuracy, delivery locations, and carrier policies, shippers can significantly minimize their exposure to unexpected charges. This strategic approach leads to a more predictable shipping experience and fosters better relationships with freight carriers.