Whether you’re trying to expand your cargo business overseas or you’re already facing global shipping issues, you should understand the freight process well. And in the world of freight, some rules just don’t apply to all. Less-Than-Truckload freight is a totally different thing. But if you get to know the types of LTL accessorials well, you’ll be able to lower the fees and learn how to negotiate. Although you can’t prevent additional charges, you can learn how to reduce them! And if you’re planning to ship your cargo overseas, don’t forget to take enough time to read and understand Bahrain customs clearance.
What are LTL accessorials?
Before we start with 3 types of LTL accessorials, let’s see what really are LTL accessorials. Less than truckload type of shipping is the transportation of relatively small freight. Their accessorials compensate carriers for services and equipment beyond the basics. Also, charges for accessorials generally appear in the rules tariff of each LTL carrier. But the main benefit of using this type of shipping is that you can transport cargo for a fraction of the cost of hiring an entire truck and trailer for an exclusive shipment. Besides, LTL carriers offer numerous accessory services, that FTL carriers don’t offer. Looking for a reliable and professional cargo company? Cargo companies in Dammam are your best choice.
The difference between LTL and an FTL (full truckload)
Wonder what is the difference between FTL and LTL freight? Let us explain. Full truckload shipment is usually picked up by one truck, loaded by one driver, and delivered to one location. On the other side, with LTL freight, the same shipment will be moved by multiple trucks and several drivers, before being consolidated with other loads that are going to the same location. Besides, LTL carriers use accessorial charges. LTL accessorial charges represent fees applied to cargo when you’re using additional services. Likewise, transit times for LTL freight are longer than for full truckload freight (FTL). Before choosing your freight agent, learn how to correctly complete bill of lading.
Are LTL accessorials bad?
People usually consider types of LTL accessorials bad. But LTL accessorials are not necessarily a bad thing. Actually, it’s like in every other business. You can’t predict and prevent everything. But you can learn how to mitigate the LTL fees. As carriers can change their rates and rules whenever they want to, make sure to review their rules and rate tariff quarterly. And, if LTL accessorials happen, search for the root cause of the charge to see if there are patterns. Therefore, if you face many of the same types of accessorial, you’ll be able to prevent them by shifting to other modes that aren’t always affected by the same accessorials. One of them is LTL consolidation. Make sure to also find out and understand the reasons for insuring items for global shipping.
3 most common types of LTL accessorials
Although there are many types, the following are the 3 most common types of LTL accessorials:
The first among 3 common types of LTL accessorials is administrative type. It refers to errors and omissions on a bill of lading to improper weighing of freight. If anything happens at the carrier’s terminal as a result of the bill of lading (BOL), there will be additional costs. Therefore, these shipments must be pulled out of transit, so the carrier can correct them and address them properly. Some of the most common LTL charges are shipment verification, reweigh, and inspection. But with clear gross shipment weight, class, and National Motor Freight Classification (NMFC) number, you can easily avoid these costs. It’s because most carriers allow a leniency of about 15 lbs weight variance from what their scales show for weight compared to what the BOL states.
When it comes to LTL accessorial type about a delivery, this is where the most extra fees occur. The issue is the redelivery fee. Redelivery fees occur when the consignee requires a delivery appointment, but it wasn’t included in the bill of lading. Therefore, the carrier must now redeliver the freight. Also, redelivery may happen when the right equipment isn’t on-hand for loading and unloading.
For example, the carrier’s driver can’t wait more than 30 minutes at the shipper’s location due to the nature of the LTL business model. And imagine what could happen in a metropolis like NYC? It’s reasonable why delivery accessorial, occurs when the LTL carrier must drive around in a major metro area. No parking lots and bad traffic can cause longer pickup or delivery times than expected. For metro deliveries, carriers charge this accessorial.
The third type of LTL accessorials is about equipment. Simply, there will be fees for any additional equipment needed for delivery such as lift gates, forklifts, pallet jacks, climate-controlled units, and others. Usually, carriers have a limited amount of such equipment at each terminal. So, they need to carefully schedule them for daily deliveries. And if there is no such equipment, that can lead to delivery delays and extra costs. For example, if you fail to advise the carrier in advance of any equipment on their BOL, the cargo will go out for delivery and have to be returned to the terminal until equipment becomes available. On the other side, you’ll have to pay not only LTL accessorial fees but also redelivery fees.
Ways to mitigate LTL accessorial fees
And now, when you understand how LTL accessorials work, you can discover the ways to mitigate their fees! Although considered bad, the really good thing about LTL accessorials is that they are not hard to negotiate and mitigate. If you’re shipping general cargo, that is accurately weighed and classified, and later delivered dock-to-dock under ideal conditions then you may pay LTL accessorials. Take enough time to understand your freight. As a result, you’ll tell more about it to your carrier and get more transparent billing. So, if you know the true frequency of accessorials as a percentage of your total LTL volumes with shippers, they’ll be easier to negotiate.