LTL shipping can be more affordable and effective than FTL or full truckload shipping in many cases. However, you can’t always assume that LTL shipping will be cheaper in aggregate, especially when considering accessorials for LTL shipping.
Not sure what those are or how they may impact your bottom line for your freight prices? Today, let’s break down accessorials for LTL shipping in detail.
What Is LTL Shipping?
LTL, or less-than-truckload shipping, is a freight transportation method involving moving partial truckloads from place to place. Unlike FTL or full truckload shipping, LTL shipping combines multiple partial cargo loads into the same truck.
For example, if a freight trailer has 1500 pounds of capacity, one client might pack 750 pounds of cargo into the trailer. The carrier then moves to another pick-up spot, gets another 450 pounds of cargo, then goes to a third pick-up spot and picks up a final partial truckload of 300 pounds.
In this way, the freight trailer is at full capacity, but it services multiple clients simultaneously. LTL shipping is often preferred by small businesses and beneficial for all businesses because:
- It’s oftentimes cheaper in terms of flat freight quotes compared to FTL shipping
- LTL shipping can be more flexible if a client doesn’t need the freight delivered as quickly as possible
- LTL shipping is often ideal for very small shipments that would be difficult to transport using other means, like the postal service
What Are LTL Accessorials?
While there are many benefits to LTL freight shipping, LTL shipping also comes with so-called accessorials or surcharges.
In a nutshell, LTL accessorials are extra charges that carriers or shipping companies may charge for ancillary services unrelated to picking up cargo or dropping that cargo off at its final destination.
LTL freight rates only account for the cost of picking up cargo, driving the cargo from one place to another, and dropping it off. Anything else — including physically moving the cargo anywhere aside from out of a trailer or flatbed — is considered to be accessorials or accessory charges.
Because of this, many business owners new to LTL shipping are caught off guard by the real cost of this freight transportation method. They may find that LTL shipping is a little more expensive than a comparative FTL shipping rate because of how accessorial fees add up.
What Are Common LTL Accessorial Fees
LTL accessorial fees can vary from service to service. However, should you ever use LTL shipping, you may run into one or more of the following charges.
Inside Pick-up
Inside pick-up accessorial fees are applied whenever a shipment has to be picked up or delivered inside a building. Why the extra charge? The driver for the truck has to physically exit the truck and enter a building, then personally move freight into the trailer.
All of that costs valuable time that the driver could be using to make their next delivery or pick-up. This is doubly true if the driver has to navigate security processes, pick up a key card, ask questions or directions, etc.
Since inside pick-up takes so much extra time and effort, it's fair for LTL shipping companies to charge an extra fee because of it. If you want to avoid this fee, you can put the cargo in a place where the driver can pick it up quickly and easily outside, preferably without exiting their vehicle.
Note that inside delivery fees can apply for the same reasons. The driver has to physically unload the cargo and put it someplace other than right outside the trailer.
Limited Access
Limited access accessorial charges are fairly open to interpretation by freight carriers, so it can be difficult to know whether you will or will not be charged this.
Simply put, some pick-up and delivery locations are considered "limited access" either because they are difficult to reach or because they have certain security features that make them difficult to access by truck drivers. For instance, if a driver has to spend 15 minutes navigating a very dense neighborhood road, you may face a limited access charge because of the extra time and labor required to deliver your shipment.
Similarly, if a driver has to go through a lengthy security process to pick up a key card or gain access to a delivery area, you may face a surcharge. Limited access fees can charge you anywhere from $30 to several hundred dollars or more, so try to avoid them when possible.
Residential Pick-up
Residential pick-up fees are what they sound like: accessorial charges intended to compensate carriers for picking up deliveries in residential areas. This is a common LTL accessorial charge because residential pick-ups can be more time-consuming and difficult than industrial pick-ups.
In residential areas, big truck drivers have to be very careful as they navigate and take extra care not to bump into other vehicles, people, property, etc. As a result, pick-ups and deliveries in residential areas take longer than cargo actions in industrial areas or warehouses, typically designed and cleared for trailer movements.
Depending on the carrier you use, residential pick-up fees may cost anywhere between $20 to $150 or significantly more. However, note that what constitutes a "residential" area is also up for interpretation by individual drivers or carriers.
For instance, a small business run out of a home may not count as residential if the owner of the building has a dedicated pick-up spot for truck drivers in the back.
Detention
Detention fees are LTL accessorial charges incurred if a driver has to wait for longer than normal to begin unloading freight at the delivery point. Most LTL carriers begin charging detention fees after 15 minutes of waiting, but some may even leave if it takes longer!
In such a circumstance, you’ll face even higher re-delivery fees if you want your cargo delivered promptly. Detention fees are important because many LTL truck drivers have very tight schedules. They don’t have time to wait for very long before they need to move on to their next destination.
Therefore, it’s important to ensure that your supply chain and cargo unloading processes are always streamlined and efficient. Make sure that your workers or warehouses can receive shipments and unload cargo quickly so drivers don’t have to wait very long and can get back on the road ASAP.
Lift Gate
Liftgate charges are incurred when an LTL trailer uses a liftgate mechanical device at the rear. Liftgates raise or lower freight into the trailer or onto the ground. Whenever a liftgate is used to pick up cargo or deliver it, you may be charged an accessorial fee of as little as $20 or much more than $100.
The best way to avoid this fee is to have your own equipment to assist with the loading or unloading of cargo. However, this isn’t always feasible, especially if you don’t have a loading dock at your receiving station (or if your cargo is being delivered to a residential area, like a home).
Oversize
Oversize fees are charged whenever your freight is longer than normal, usually greater than eight feet in length. Carriers charge these fees because it impacts how well they can fit extra freight into the trailer.
If, for instance, your LTL oversized load prevents the carrier from adding another load into the trailer, it may result in a lot of empty space. They may charge you extra money to make up the difference.
As a result, oversize fees can vary heavily in cost and frequency. In addition, keep in mind that some LTL freight carriers don't accept oversized shipments whatsoever. Be sure to mention this when settling on the details of a shipping contract.
Can You Avoid Accessorials?
While these LTL accessorial charges can be quite costly when added together, you can also avoid accessorials in some cases. As a business owner, you can minimize or avoid accessorial charges by:
- Clearly stating what you expect from the shipping service, so there are no miscommunications between you and your carrier/shipping company
- Giving the shipping company enough time to deliver cargo without rushing. Otherwise, you may be subject to rush charges
- Providing the equipment and tools necessary to load and unload cargo at the pick-up and drop-off points. For example, if you need furniture delivered to your business premises, ensure your employees have the equipment needed to remove the furniture from the truck trailer so the shipping company doesn't have to use a liftgate.
- Providing pick-up and drop-off points that don't require extra effort on the carrier's part. For instance, if you need freight delivered to a residential area, try to find a clear place where it’s easy to park to minimize hassle and the possibility of damage.
- Scheduling your freight deliveries, so they don't stack up on top of each other. This will avoid detention fees. In theory, if your supply chain system is running smoothly, each driver should be able to roll up, drop off their cargo, and be on their way without waiting for other cargo to be unloaded or loaded into a new trailer. This may require streamlining your warehousing practices or hiring more employees.
In other words, planning ahead and doing what you can to streamline the freight process may help you avoid accessorial charges for your LTL shipments.
The Bottom Line
As you can see, LTL shipping is often cheaper than FTL shipping, but you must keep accessorial charges in mind. If there are enough, you might accidentally pay more for an LTL freight load than an FTL alternative or counterpart!
Of course, the right end-to-end transportation service will ensure you never have to guess how much you'll pay for shipping. At RPM, we offer our clients excellent prices thanks to our robust network of quality carriers; plus, we have an integrated mobile app to let you check prices, track shipments en route, and more.
Contact us today to see why we’re the best choice for all your freight shipping needs.
Sources:
Less-Than-Truckload (LTL) Definition | Investopedia
Demurrage and detention charges in container shipping | UNCTAD
Oversize/Overweight Load Permits | FHWA Freight Management and Operations
