Freight and Accessorials
How freight charges, accessorial fees, and dimensional weight adjustments are calculated and billed
Understanding Freight Costs
Freight costs are crucial in logistics, impacting your bottom line significantly. At Founders 3PL, we ensure transparency with cost-plus pricing, making every charge clear. Unlike bundled fees, our model provides complete visibility into each component of your shipping costs.
Avoid hidden surcharges by opting for a 3PL that offers transparent, itemized billing.
Accessorial Charges
What Are Accessorials?
Accessorials are additional charges that may apply during the shipping process. These can include fees for services like lift-gate delivery, inside pickup, or residential surcharge. Knowing these can help you manage and predict shipping expenses more accurately.
- Lift-gate service: $75–$150 per delivery
- Inside delivery: $50–$100 per occurrence
- Residential surcharge: $25–$50 per shipment
- Address correction fee: $10–$15 per correction
- Delivery appointment: $25–$50 per appointment
Strategies to Manage Freight and Accessorial Costs
Managing freight and accessorial costs involves strategic planning and negotiation. Use data to track common accessorials you incur and work with your 3PL to find cost-effective solutions. Regularly review shipping routes and options to ensure optimal pricing.
- Negotiate rates based on volume
- Consolidate shipments where feasible
- Optimize packaging to reduce dimensional weight
- Review accessorials periodically to identify areas for reduction
- Choose the right carriers for specific delivery needs
Evaluating 3PLs Based on Freight Transparency
When considering a 3PL, insist on clarity in freight terms. Analyze their ability to provide detailed, line-item invoices and their commitment to passing through carrier discounts. A transparent provider will openly share their cost structure, allowing you to see exactly where your money is going.
Transparency in freight billing is not just a feature—it's a baseline expectation. Demand detailed line-item invoices to ensure you're getting the best deal.
Common Pitfalls and How to Avoid Them
Many shippers fall into the trap of not fully understanding their freight invoices, leading to unexpected costs. Regular audits of freight bills can help identify discrepancies. Also, ensure your 3PL uses a competitive carrier selection strategy to avoid overpaying.
- Conduct regular freight bill audits
- Ensure compliance with all shipping regulations
- Understand the impact of package dimensions on costs
- Watch for unexpected accessorial charges
- Verify carrier selection processes
Transparency in freight billing is not just a feature—it's a baseline expectation.
Philip Quick, Founders 3PL