The Six Most Common Accessorial Charges Every Freight Broker Should Know

Accessorial Fees Freight Brokers Should Know
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An accessorial charge is a fee that is charged by a carrier for an additional service provided during transit of a load. This is a charge outside of the agreed upon line haul and mileage.

6 most common accessorial charges:

 
 
1. Detention

This is the most common accessorial fee charged by carriers in the transportation industry. Detention is a fee that is charged by a carrier for additional time spent getting loaded or offloaded at a shipper or receiver. Typically, the drivers will allow 2 free hours wait time at either facility before detention charges are incurred. After the 2 free hours, they will charge an hourly rate until the loading or offloading process is completed.

This rate is typically between $25 and $100 per hour. It is best to establish this rate with your carrier in your set up packet. You can do this by creating a one page insert stating your accessorial charges up front that the carrier can actually sign stating they agree.

2. Reconsignment

Reconsignment is when a shipment destination is changed after the freight has been picked up by the carrier. This is typically a $50 to $75 charge by the carrier, plus any out of route miles. For example, if you book a load with a carrier for Los Angeles, CA – San Diego, CA with a line haul of $550 (124 loaded miles) and you change the destination to Calexico, CA (now 224 miles transit), the carrier would charge a minimum $50 reconsignment plus (550 divided by 124 miles) $4.44 per mile x 100 additional miles = $494 reconsignment fee.

3. Stop-Off Charge

Each additional stop you add to a load has an additional charge. Typically a stop-off charge will range from $50 to $100 per stop. Example: 1 pick, 4 stops, the carrier would take that typical line haul cost, plus 3 $50 stop off charges (important to know when quoting multiple stops for customers).

Los Angeles, CA – San Diego, CA (3 stops in San Diego)

Line Haul: $550 (1 pick 1 stop)

Stop off 3: $150

Total: $700

4. Lumper Fee

A lumper fee is charged when the driver needs to hire a service to offload the product from the trailer. This is normally required at a large DC or warehouse such as Kroger or McLanes. Some common lumper companies are Capstone Logistics, Eclipse and Advantage.

These lumper service fees vary dramatically from $75 to $600 and varies by company and the service
provided. If they have to break down the pallets and re-pallet the product or any additional services, the lumper fee will be more expensive. The driver should be sure to include a receipt along with the BOL or POD in order to get reimbursed for payment. 

5. Layover

A layover fee is applied if a truck is unable to get loaded or offloaded (typically we see layovers when offloading) on the day originally scheduled and the transit/loaded are days are extended. This can occur if there is incorrect appointment information received, the receiver is short staffed or has broken equipment, if the product is not ready, etc. Whatever the reasoning is, if this happens, the carrier will charge a per day layover fee.

These fees range from $200-$500 per day. The layover fee can be more expensive if you hired a Team Service or if the drivers have any special certs they were using for your load. Typically, the more specialized the driver or service, the more expensive the layover per day.

6. Truck Order Not Used (TONU)

Used when a broker hires a carrier to haul their load. All the terms have been agreed to and signed off on, but then the truck gets cancelled by the broker before they are able to get loaded. Usually charged for a same day cancellation. So, for example there would be no TONU issued if a truck is cancelled the day prior to the load picking up. Reasons for issuing a TONU may be, the product is not ready at the shipper, the product is stuck at boarder crossing, the load is cancelled by your customer, etc.

A TONU charge can range from $150-$250

 Download a free sample one page Accessorial Fee insert to use in your carrier packages. 

 

If you’re interested in learning more about how Axle can help grow your credit and help build your business, we’d love to talk. 

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