Extra charges on your freight bill is a frustrating experience that creates uncertainty. When moving goods, shippers typically calculate transportation costs based on common factors such as mode of transport, timing, weight, volume, and distance traveled.
These unexpected increases often have nothing to do with the core transportation cost itself. Instead, they come from ancillary charges, which are extra fees applied when a shipment takes additional time, equipment, or handling that wasn’t anticipated upfront. Avoiding these additional costs involves understanding how ancillary charges work and key to prevent triggering potentially hidden surcharges.
The culprit is usually ancillary charges, which are extra fees applied in addition to the basic transportation costs that form the lion’s share of the price. Shippers are sometimes not familiar with how these types of charges can be implemented, so the resulting invoice can catch businesses off guard. Beyond impacting the bottom line, unexpected fees can complicate relationships with partners and customers if they end up absorbing the extra costs.
There are a variety of scenarios where ancillary charges end up on your freight bill. Some of the more common reasons why these extra charges happen include the following:
When deliveries require specialized equipment, such as hydraulic tailgates, liftgates, or pallet jacks, additional costs may be charged. If your shipment requires specialized equipment and it isn’t included in the invoice upfront, carriers may add an extra fee.
Some delivery destinations can be more difficult to access than others, or allow deliveries in a narrow time period. If a delivery falls under this scenario, carriers may add extra charges for a “non-standard” destination or time.
Even a relatively small weight underestimation can result in additional costs. Weight discrepancies are a frequent source of extra charges, as carriers will recalculate charges based on actual weight upon pickup.
Added fines and surcharges can end up increasing your shipping costs if missing packing lists, inaccurate product descriptions, or improper customs forms slow down shipments or create delays. Missing paperwork can require your cargo to be bonded at your expense if it can't clear customs. Time is money, so carriers will pass along any extra time taken to correct documentation as an additional fee.
If shipments are delayed or otherwise not ready when carriers arrive at ports, detention or demurrage fees can quickly accumulate. Demurrage is the charge for keeping a container at the port beyond a certain date, while detention is the charge for keeping the container outside the port beyond a certain date. These dates can change from one carrier to the next and between different ports.
Preventing ancillary fees involves preparation, attention to detail, and collaboration with carriers, freight partners, and customers. You can integrate the following actionable steps into your shipping workflow:
Know access restrictions, local regulations, and any special delivery needs that may trigger extra fees. Address them with the carrier ahead of time.
Incorrect weights or improperly labeled goods often result in additional charges. Accurate packaging and information sharing prevents carrier disputes and secures your goods.
Well-trained staff can ensure all shipment requirements are met before pickup. Ideally, employees should be able to spot and mitigate potential shipping issues before they become a problem.
Reliable weigh scales, appropriate packaging materials, and accurate labelling systems for hazardous or regulated goods help avoid unforeseen changes to your freight bill. Don’t hesitate to reach out to carriers or partners if you need to confirm the need for specific equipment.
Detention and demurrage fees are often preventable with proper scheduling. Ensure shipments are ready on time and communicate with carriers, partners, or customers to arrange prompt loading and unloading at ports and warehouses.
For shipments subject to tariffs, ensure accurate classification numbers for your goods. Misclassification can result in costly re-billing, penalties, and missed opportunities to reduce taxes and tariffs.
Unexpected freight charges can erode profit margins and create unnecessary frustration. Fortunately, most of these costs are avoidable with the right preparation and communication with carriers, warehouses, and port destinations. By understanding how ancillary fees arise, maintaining accurate documentation, and training your team, you can keep your freight bills predictable and protect your bottom line.
Cole’s cohesive and collaborative logistics team provides advantages that separate, stand-alone companies simply can’t provide. Contact Cole to learn more.