Accessorial fee for carriers is a fixed amount paid by the shipper or consignee to the shipping carrier or freight forwarder for international shipment of goods. The fee is applicable for the movement of goods using any mode of transportation such as train, truck, plane, and ship. Shipping carriers usually charge an additional fee apart from the transportation charges to compensate for using further services to move goods. These services are primarily utilized in cargo loading and unloading or even container packing. Let us learn more about the accessorial fee and its breakdown.

What do you mean by accessorial fee for carriers?

Accessorial fee for carriers refers to additional charges levied apart from the standard transportation rate. This fee covers a spectrum of supplementary services associated with the shipping process, such as unloading, loading, and packing the goods for transportation. The accessorial fee compensates carriers for the additional resources, time, or complexity in fulfilling specific shipping needs under unique circumstances. These accessorial fees are crucial for carriers to maintain profitability and ensure that they can continue to provide specialized services while addressing the diverse needs of shippers. The port authorities or shipping company counts the accessorial charge as a part of the freight bill.

An accessorial fee is generally charged when additional equipment, labor, fuel, or machines are required. Common examples of accessorial fees include liftgate service, which is required when a pickup or delivery location lacks a loading dock and requires a hydraulic lift to load or unload goods. 

Component of accessorial charges 

The accessorial charge in shipping can be broken down to cover the following major expenses- 

1. Detention – Some accessorial charges are time-based, such as detention or waiting time fees, incurred when carriers wait at pickup or delivery locations beyond the agreed-upon time.
2. Special handling – Certain goods may require special handling due to their weight, size, fragility, or hazardous nature, resulting in additional charges to cover the extra care and attention needed during transportation.
3. Distance – Accessorial charges may also be influenced by the distance traveled or the complexity of the carrier’s route, particularly for services like reconsignment or redirection of shipments.
4. Fuel surcharge – One of the most common accessorial fees in shipping. Fluctuating fuel costs can lead to fuel surcharges being applied to shipments to offset the carrier’s fuel expenses. These charges may vary based on current fuel prices and can be a significant component of accessorial fees.
5. Services – Different services, such as liftgate assistance, inside delivery, or residential delivery, may incur specific charges based on the nature of the service provided.
6. Location – Charges may vary depending on the pickup or delivery location. For instance, deliveries to residential addresses or locations without loading docks may attract higher fees due to additional logistical challenges.
7. Special permit – These are not common to all shipments but are specifically required for oversized or hazardous shipments that require special permits and documentation.

Who pays the accessorial fee?

The accessorial fee for shipping is to be paid by the shipper or consignee. Depending on the terms in the shipping contract, the shipper or consignee takes over the accessorial charges and pays them to either the shipping carrier or the freight forwarder. Let us learn more about the conditions for payment of the accessorial fee.

1. Shipper pays – The shipper is typically responsible for covering accessorial fees associated with particular services or circumstances requested by the shipper or required for the successful delivery of the shipment. These fees are often included in the shipping cost and invoiced to the shipper by the carrier.
2. Consignee pays – In some scenarios, mainly when accessorial fees are incurred due to specific delivery requirements or services requested by the consignee, the consignee may be responsible for covering these additional charges. This arrangement, defined by the incoterms, should be agreed upon in advance between the shipper, consignee, and shipping carrier.

Tips to reduce accessorial fees for carrier

Shippers and consignees can follow these tips to minimize the accessorial fee in shipping.

1. Consolidate shipments – LTL (less than truckload) shipments are more expensive, and overweight shipments may attract additional costs. Combine multiple shipments into full truckloads whenever possible to reduce the number of stops and the need for additional services like liftgate assistance or inside delivery.
2. Provide accurate information – Discrepancies in the declaration of cargo specifications or misclassification of cargo lead to additional charges. Ensure that all shipment details in the bill of entry, including weight, dimensions, pickup and delivery addresses, and special handling requirements, are accurate and communicated clearly to the carrier. This helps prevent unexpected fees resulting from incorrect or incomplete information in the bill of lading.
3. Efficient routing – After carefully considering the different delivery destination routes, select the one that avoids costly layovers and heavy traffic that could cost extra fuel. Look for direct routes of container depot to the delivery destination and schedule it during regular hours.
4. Choose carrier services wisely – Select carriers that offer the specific services you need at competitive rates. Compare pricing and service options from multiple carriers to find the best value for your shipping needs.
5. Negotiation – Long-term contracts with carriers are always favourable for securing better rates and terms. Consider including provisions that waive or reduce specific accessorial fees based on shipment volume or frequency.

Accessorial charges in shipping are sometimes unavoidable due to shipping needs but can be minimized. With these few tips, shippers and consignees can reduce accessorial fees for carriers in shipping.

LOTUS Containers is a shipping container service provider in Germany that sells and leases all types of shipping containers, including 20ft, 40ft, and 53ft intermodal containers.