Accessorial charge meaning, synonyms, antonyms, translation, and use cases

Accessorial charges

In today’s word for the day, we will be giving you a highlight on the meaning of Accessorial charge, its synonyms, antonyms, translation, and use cases.

Meaning

A cost added to a shipper’s freight invoice as a “accessorial charge” represents additional services rendered by the motor freight carrier beyond the pick-up and delivery operation specified at the time a shipment is tendered. In addition to the line haul fee and fuel surcharge, there are numerous more services related to the transportation of goods that are covered by the extra fees.

Shipping invoices include an accessorial charge for additional services. An accessorial charge is made when an additional service is rendered, but not stated in the first estimate for services. Most of the time, accessorial fees are something that LTL or parcel carriers will charge (especially overnight or express deliveries).

All types of freight transportation services are impacted by various types of ancillary fees. Some ancillary fees are an upfront cost, while others increase daily until the matter is settled and the account is closed. Accessorial costs are occasionally known at the moment the shipment is tendered, such as for residential, liftgate, and inside delivery, but they are typically unknown until the shipment is finished and charged. Detention, demurrage, and storage fees are a few instances of unanticipated expenditures. Frequently, these ancillaries are not noticed until the shipping is finished and billed.

Since the fees weren’t anticipated by the shipper and weren’t included in the price it charged its customer for the delivery, they have an instant negative impact on a company’s bottom line budget.

The unforeseeable and unexpected component of accessorial costs puts a lot of pressure on the top two KPIs by which logistics teams are normally assessed: the level of service and profit

Top 30 Accessorial Charges

  • Advanced Notification
  • Bill of Lading (BOL) Correction Fee
  • Chassis
  • Demurrage
  • Detention
  • Driver Assist
  • Driver Count
  • Driver Clean
  • Hazardous Materials
  • Inside Delivery
  • Layover
  • Liftgate
  • Limited Access Fee
  • Lumper
  • Misuse Charge
  • Out of Route Miles
  • Oversized / Overlength
  • Overweight

More Ways to Avoid Accessorial Charges

Accurately define and understand the shipper and consignee requirements.
Accessorial SavingsIdentify the challenges the carrier will have at the pick-up and delivery docks and discuss them with the carrier beforehand. In some cases, accessorials can be negotiated out of the tariff during the contract negotiation period.

Understand what is in the carrier’s rates and rules tariffs.
Carriers typically list their accessorials in their rules tariffs or on their website. Shippers and consignees should be aware of the accessorial schedule and monitor closely because carriers will sometimes change fees with little or no notice.

Bring operational efficiencies to your carrier
Accessorials can be cut back on or eliminated by helping carriers operate more efficiently. For instance, load or unload the carrier as soon as you can if they arrive at their appointment on time.

Other items to consider are:

  • Make sure you order the right size of equipment.
  • Have the proper paperwork is in order.
  • Ensure everyone up and down the supply chain understands the shipment and the shipment requirements.
  • Make the right transportation selection and be diligent.

Create trusting, long-lasting relationships with your partner carriers. Consider every accessory charge carefully; consider how it affects your budget; consider whether the charge might have been avoided; consider whether the issue was with the shipper, the recipient, or the carrier. Finding the answers to these questions will undoubtedly result in lower accessorial costs as well as improved flow and distribution of your products.

 

Reasons for an accessorial charge

Administrative: These fees are frequently the result of a bill of lading (BOL) error that was discovered at the carrier terminal. The most avoidable costs are administrative ones since they can be avoided by double-checking the accuracy.

In Motion: Delivery fees are quite usual, and they usually happen when a delivery window was missed. There may be a number of causes for missing a delivery window, but depending on how long it delays the process, needing to redeliver the product or find another route will incur additional costs.

Equipment: Sometimes a shipment will need additional equipment, but the BOL must be meticulously described. There will be an additional charge if the type of equipment required is not stated for: the time it takes to correct the issue and adding the equipment itself.

 

Synonyms

  • surcharge

Antonyms

  • Non-accessorial pay

Translation

Spanish- Cargo adicional
Greek- Αξεσουάρ χρέωση
Latin- Accessorium crimen
French- Taxe accessoire
Portugese- Cobrança acessória

 

Use cases

  • Even if the Carrier is in charge of collecting any ancillary fees issued against the cargo, the fees will be for the cargo’s account.
  • Accessorial Fees for a variety of benefits and services provided in conjunction with the transportation of goods.
  • The total deposit amount will be equal to 200% of the average monthly accessorial charges over the previous twelve (12) months.

Frequently Asked Question

What are shipping accessorials?
Accessorial charges are fees added to a freight bill for additional services that the carrier might provide. These are a la carte, or per service, and outside of standard shipping and receiving. They are mode-agnostic but are known to occur most often with LTL shipments.

What is accessorial fees in shipping?
Accessorial charges or fees are generally defined as additional charges or surcharges assessed by the carrier for additional services beyond basic shipment delivery. Accessorial charges are commonly assessed by carriers in many transportation modes including parcel, less-than-truckload and truckload shipping.

How do you avoid accessorial charges?
The only way to avoid this fee is to make sure that you are shipping freight to and from facilities with dock height doors. If the facility does not have a dock, make sure they have the necessary resources on hand to unload the freight.

What is an accessorial invoice?
An accessorial charge is applied to shipping invoices for extra services. When an extra service is provided but not included within the initial estimate for services, this is an accessorial charge.

What is meant by bill of lading?
A bill of lading is a document of title, a receipt for shipped goods, and a contract between a carrier and a shipper.This document must accompany the shipped goods and must be signed by an authorized representative from the carrier, shipper, and receiver.

Who is legally responsible for demurrage charges?
The consignee is generally responsible for any demurrage incurred and must pay the charges in full before they can receive their goods. Demurrage charges are per container, per day, and vary based on carrier, terminal, warehouse, etc., and will generally be higher for reefer or refrigerated containers.

 

Video explanation of Accessorial charge

This will give you a further explanation on the meaning of Accessorial charge

Summary

Transportation accessory costs are fees assessed by freight transportation companies for extra services beyond normal pick-up and delivery. When more labor, supplies, time, or fuel is required, accessorial charges or accessorial fees are sometimes levied.

The schedule of fees or regulations imposed published by freight transportation service providers includes accessorial costs. Accessorial fees in transportation apply to small parcel, full truckload, and intermodal shipments as well as less-than-truckload (LTL) shipments, where they are most prevalent.

Comments

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