Every month, thousands of businesses receive freight bills with mysterious line items that can add 20-40% to their expected shipping costs. Known as accessorial charges, these hidden fees are one of the most significant overlooked costs in the shipping industry. For any business that ships products, from small retailers to large manufacturers, understanding and controlling these charges is crucial to protect profit margins. The key lies in knowing what triggers them and implementing strategies to avoid unnecessary fees.
Key Takeaways
- Accessorial charges are additional fees that can increase freight costs by 15-30% or more.
- Common hidden fees include fuel surcharges, liftgate services, residential delivery, and detention charges.
- These charges often appear as coded line items, making them hard to identify.
- Proactive planning and clear communication with carriers can help avoid many fees.
- Transportation management systems (TMS) and freight auditing tools can help identify and control these costs.
What Are Hidden Freight Fees and Accessorial Charges?
Accessorial charges are additional fees that carriers impose for services beyond basic pickup and delivery. These fees compensate carriers for extra labor, specialized equipment, added risk, or administrative work not included in standard freight movement. While the base shipping rate covers transportation from origin to destination, accessorial fees address every deviation from that basic scenario. They are often “hidden” because they can be buried in complex tariff documents or appear as codes on invoices, making them difficult to identify upfront.
Financial Impact of Hidden Charges
The cumulative effect of accessorial charges can be staggering. Businesses not actively managing these fees can spend 15-20% of their total freight cost on them. For a mid-sized company, this can easily represent tens of thousands of dollars in unexpected expenses annually. The unpredictable nature of these fees creates significant budgeting challenges and can even damage customer relationships if unexpected costs are passed on. Small businesses are often disproportionately affected as they lack dedicated logistics staff to identify and manage these charges.
Most Common Hidden Accessorial Charges
| Fee Type & Category | Typical Cost Range | Common Trigger |
| Delivery & Pickup | ||
| Liftgate Service | $75 – $150 | Delivery location lacks a loading dock. |
| Residential Delivery | $50 – $100 | Delivery to a home or home-based business. |
| Limited Access | $25 – $75 | Delivery to schools, hospitals, construction sites. |
| Inside Delivery | $100 – $300 | Driver moves freight beyond the loading dock. |
| Metro Delivery | $25 – $50 | Delivery in congested urban areas. |
| Time & Schedule | ||
| Detention / Demurrage | $50 – $100 per hour | Truck held at a facility beyond free time. |
| Redelivery | $100 – $200 | Initial delivery attempt fails. |
| Layover | $200 – $400 per day | Loading/unloading is delayed to the next day. |
| After-Hours Delivery | 25-50% premium | Delivery outside of normal business hours. |
| Truck Ordered Not Used | $200 – $500 | Shipment is canceled after truck is dispatched. |
| Shipment Characteristics | ||
| Fuel Surcharge | 15-25% of base rate | Fluctuates with diesel prices; nearly universal. |
| Oversized / Overlength | $50 – $200 | Freight exceeds standard dimensions (e.g., >12ft). |
| Hazardous Materials | $25 – $100 | Shipments requiring special handling/documentation. |
| Reclassification / Reweigh | $50 – $150 | Incorrect shipment weight or class provided. |
| Sort & Segregation | $25 – $100 | Driver must sort/count items at delivery. |
Strategies to Identify and Avoid Hidden Fees
Preparation and Planning
- Provide accurate shipment information (weight, dimensions, class).
- Confirm delivery location requirements beforehand (e.g., loading dock, hours).
- Understand carrier terms and service definitions before booking.
Communication & Documentation
- Clearly communicate special requirements to carriers upfront.
- Request detailed quotes that itemize potential accessorials.
- Regularly review shipping contracts and fee schedules.
Technology Solutions
- Use a TMS to predict accessorial charges.
- Employ automated freight auditing tools to catch errors.
- Leverage data analytics to identify cost-saving patterns.
Frequently Asked Questions
Can accessorial charges be negotiated or waived?
Yes, they are often more negotiable than base freight rates, especially for high-volume shippers. Carriers may offer discounts, bundle services, or waive fees for reliable customers.
How can I dispute an incorrect charge?
Start by reviewing your contract to confirm the charge should not apply. Gather supporting documentation (delivery receipts, photos) and contact the carrier’s billing department promptly with a clear explanation of the error to request a credit. Many carriers have formal dispute resolution processes for handling these disagreements.
Are any accessorial charges completely unavoidable?
Fuel surcharges are virtually unavoidable. However, most other charges can be prevented through proper planning, communication, and providing accurate shipment details.
What’s the difference between detention and demurrage?
Detention typically refers to charges for holding a truck at a facility beyond the allotted free time. Demurrage traditionally applies to delays in returning shipping containers or trailers in intermodal transport.
How often should I review my freight invoices for accessorial charges?
Best practice is to review every freight bill, either manually or through automated auditing systems. At a minimum, conduct monthly reviews to identify patterns. Many businesses discover significant savings during quarterly or annual comprehensive reviews that analyze spending across all carriers.
