Why do Accessorials Exist?

Why Accessorial Fees Exist in LTL Shipping | Shiplify: A freight truck with someone operating a calculator superimposed.

It is crucial to understand accessorial fees, as they significantly influence the total cost of transportation services. Transparent communication about accessorial charges allows carriers, 3PLs, shippers and their customers to grasp the true cost of shipping, ensuring more precise pricing and preventing unexpected costs at delivery. 

A clear understanding of these fees is essential for all stakeholders to maintain accurate pricing, optimize resource allocation, and ensure smooth operations. Accessorial fees vary depending on the type of freight service and specific handling requirements. 

Accessorial Fee Categorization

Newton’s third law states that for every action, there is an equal and opposite reaction. This means that forces come in pairs, and when one object exerts a force onto another object, the second object exerts an equal force back on the first. In order to help you better visualize why these accessorial fees exist, we have categorized these fees based on causes, actions, and reactions occurring within the supply chain.

Accessorial Causes

  1. Pickup/Delivery Location – Specific locations might contain attributes that inevitably make the pickup or delivery of freight easier or more difficult. Some of these attributes include:
    1. Dock Access
    2. Forklift Access
    3. Secured Access
  1. Freight Class – Specific freight might be easier, more difficult, and/or more costly to handle based on freight classifications:
    1. Weight
    2. Dimensions: length, width, height
    3. Special Requirements: oversized, hazmat, fragile, etc.
    4. Price

Accessorial Actions

  1. Additional Credentials – The location and/or the freight class requires additional credentials from the driver. Some examples might include:
    1. Transportation Worker Identification Card (TWIC) Card
    2. Hazardous Materials Endorsement
    3. Government Security Clearance 
    4. Transportation Security Administration (TSA) Certification
    5. Tanker Endorsement
  1. Additional Liability – The location and/or the freight class incurs additional liability from insurance providers. Some examples might include:
    1. Hazmat Liability Insurance
    2. Cargo Insurance (freight-class specific)
    3. Contingent Cargo Insurance
  1. Additional Services – The location and/or the freight class triggers additional services for the driver or carrier.
    1. Pre-Scheduled Delivery Appointments
    2. Liftgate Service
    3. White-Glove Service
    4. Expedited Service
    5. TWIC Escort Service
    6. Driver Assist Service
    7. On-Demand Storage Service
  1. Additional Time – The location and/or the freight class requires longer than expected pickup or delivery times. Some examples might include:
    1. Limited Access fee
    2. Residential Delivery fee
    3. Detention fee
    4. Layover fee
    5. Re-Delivery fee
    6. After-hours/Weekend fee
    7. Lumper fee
    8. Sorting Cargo fee
    9. Cancellation fee
    10. Advanced Notification fee
    11. Diversion Miles fee

Accessorial Reactions – Carrier Applies a Fee –

  1. Limited Access Fee
    1. Accessorial Cause: Pickup/Delivery Location
    2. Accessorial Actions: Additional Credentialing, Additional Liability, Additional Services, and/or Additional Time
      1. Fees might be applied for pickups or deliveries at over 60+ different types of locations that inherently make transportation services more difficult and/or costly.
        1. Military Bases – good examples of locations where drivers might need special paperwork, documentation, or credentials to enter the premises.
        2. Schools & Universities – good examples of locations where drivers might run into fines or incur accidents based on infrastructure.
        3. Residential – good examples of locations that might require extra services like Liftgate Service, Inside Delivery, or White Glove Delivery.
        4. Grocery Warehouses – good examples of locations that might require Lumper Services.
        5. Airports or Amusement Parks – good examples of locations that might require additional time due to security protocol.
  1. Liftgate Service Fee
    1. Accessorial Causes: Freight Class & Pickup/Delivery Location
    2. Accessorial Actions: Additional Services & Additional Time
      1. When a pickup or delivery location lacks a loading dock or forklift, carriers may need to use a liftgate on their truck, depending on the freight weight and dimensions, in order to lower or raise freight.
  1. Detention Fee
    1. Accessorial Causes: Pickup/Delivery Location
    2. Accessorial Actions: Additional Time
      1. If the driver is held at a shipper or consignee location beyond the allowed free time (usually 30–60 minutes), a detention charge applies due to the delay in operations.
  1. Layover Fee
    1. Accessorial Causes: Pickup/Delivery Location
    2. Accessorial Actions: Additional Time
      1. When a shipment cannot be delivered on the scheduled date and the driver must wait until the next available appointment, carriers charge a layover fee to compensate for lost time.
  1. Re-Delivery Fee
    1. Accessorial Causes: Pickup/Delivery Location
    2. Accessorial Actions: Additional Services & Additional Time
      1. If delivery location is not available to receive freight or if the delivery attempt is unsuccessful, a fee is applied for returning to make another attempt.
  1. Sort & Segregate Fee
    1. Accessorial Causes: Freight Class & Pickup/Delivery Location
    2. Accessorial Actions: Additional Services & Additional Time
      1. If freight needs to be sorted, counted, or arranged by SKU, purchase order, or category before unloading, additional labor is required, resulting in an accessorial charge.
  2. Driver Assist (Hand Load/Unload) Fee
    1. Accessorial Causes: Pickup/Delivery Location
    2. Accessorial Actions: Additional Services & Additional Time
      1. When a driver is required to physically load or unload freight rather than performing dock-to-dock service, an additional fee applies.
  1. Inside Delivery Fee
    1. Accessorial Causes: Pickup/Delivery Location
    2. Accessorial Actions: Additional Services & Additional Time
      1. If a shipment requires freight to be delivered inside a building instead of curbside or dock delivery, additional accessorial fees apply.
  1. Residential Delivery Fee
    1. Accessorial Causes: Pickup/Delivery Location
    2. Accessorial Actions: Additional Services & Additional Time
      1. Freight delivered to a residential address instead of a commercial location requires specialized routing, scheduling, and liftgate usage, leading to extra accessorial charges.
  1. After-Hours/Weekend Delivery Fee
    1. Accessorial Causes: Pickup/Delivery Location
    2. Accessorial Actions: Additional Services & Additional Time
      1. Deliveries outside of standard business hours, such as nights, weekends, or holidays, result in an extra charge due to overtime and scheduling adjustments.
  1. Storage Fee
    1. Accessorial Causes: Pickup/Delivery Location
    2. Accessorial Actions: Additional Time
      1. If freight remains at a terminal due to a missed delivery or consignee refusal, storage fees are applied based on the duration of the hold.
  1. Freight Reclassification Fee
    1. Accessorial Causes: Freight Class 
    2. Accessorial Actions: Additional Services & Additional Time
      1. If the declared freight class does not match NMFC (National Motor Freight Classification) guidelines, the carrier may reclassify the shipment and charge for the adjustment.
  1. Hazmat Fee
    1. Accessorial Causes: Freight Class & Pickup/Delivery Location
    2. Accessorial Actions: Additional Credentialing, Additional Liability, Additional Services, and/or Additional Time
      1. Shipments containing hazardous materials require specific handling, labeling, and paperwork per Federal Motor Carrier Safety Administration (FMCSA) regulations, leading to an additional fee.
  1. TWIC Escort Fee (Port Deliveries)
    1. Accessorial Causes: Freight Class & Pickup/Delivery Location
    2. Accessorial Actions: Additional Credentialing, Additional Liability, Additional Services, and/or Additional Time
      1. For shipments delivered to U.S. ports, if a driver lacks a Transportation Worker Identification Credential (TWIC), an escort fee is required for access.
  1. Oversize Freight Fee
    1. Accessorial Causes: Freight Class & Pickup/Delivery Location
    2. Accessorial Actions: Additional Liability, Additional Services, and/or Additional Time
      1. If a shipment exceeds standard LTL size restrictions, additional charges apply for special handling, permits, or equipment usage.
  1. Pallet Repackaging Fee
    1. Accessorial Causes: Freight Class & Pickup/Delivery Location
    2. Accessorial Actions: Additional Services, and/or Additional Time
      1. If a shipment is improperly packed or becomes damaged in transit, repackaging fees apply before it can continue to its final destination.
  1. Tarping Fee
    1. Accessorial Causes: Freight Class 
    2. Accessorial Actions: Additional Services, and/or Additional Time
      1. Some open-deck freight requires tarping to protect against weather or debris, resulting in an additional charge for labor and materials.
  1. Weight Adjustment Fee
    1. Accessorial Causes: Freight Class 
    2. Accessorial Actions: Additional Services, and/or Additional Time
      1. If a shipment’s actual weight is higher than declared, carriers will apply a weight adjustment fee based on the difference.