If you are shipping freight, you need to be aware of price adjustments for certain types of shipments and services. Learn more about what causes these price adjustments and how you can avoid them by reading our blog post.
What are Price Adjustments in Freight Shipping?
Price adjustments are fees added onto the quoted shipping rate for services that require special attention or time from the logistics manager, past the standard ins and outs of shipping freight. The thought process is that these instances occur outside of the standard shipping protocol and therefore cost the shippers more time and money to attend to, therefore the client must pay additionally for them. The main reason these fees occur though, is because they require last minute changes for the logistics managers, as they were not able to prepare for these instances. There are several common occurrences that can result in price adjustments such as:
Each shipment is giving a class depending on the size and weight of the total shipment. That class affects many details of the shipment, including what type of shipping vessel can be used to move the freight, which in turn effects the cost of the shipment. If the client underestimates the weight and size of their cargo and the class needs to be changed at the time of the shipment, that will result in a reclass fee so the logistics manager can pivot accordingly in order to accommodate the shipment.
Bill of Lading Changes
The Bill of Lading (BOL) is essentially a contract between the shipping line and the cargo owner establishing the exact agreement both parties are signing onto. The document is required by law and provides a list of the shipment’s goods. If the document is inaccurate at the time of the shipment, say, because items were left out of the original agreement, then a fee will be applied to re-do the BOL.
If a shipment exceeds 12 feet in length, an oversize fee will likely be added to the agreement to account for the additional effort and space needed to accommodate the oversized cargo. These fees can often be avoided if the client is upfront with the logistics manager from the start in estimating the size of the shipment so the large size can be built into the original agreement and quote.
Limited Delivery Access Fee
The access needed for a smooth, safe delivery must be planned for by the logistics manager, therefore if there are limitations or challenges with the delivery access, it will result in a price adjustment. Most commonly, this occurs when an employee is not available to assist with the loading/unloading or the business is open at the time of delivery and the delivery driver needs to work around customers.
Shipments that are over 100 pounds or 72 inches in height require a lift-gate in order to safely move the cargo off of the truck. If the delivery location does not have an accessible drop-off dock, the logistics manager must add a lift-gate fee to the delivery because they will need to transport a lift-gate with them.
If a shipment is delivered to a residence rather than a business, a residential fee may be added to your bill. Residences complicate a delivery so it is seen as an additional service appended onto the shipment cost.
How to Avoid Price Adjustments in Your Next Shipment
The best way to avoid price adjustments of any kind is to be as clear as possible with your logistics manager about the exact requirements of your shipment. This includes the exact size of your shipment (both in weight and height/widget measurements), the drop-off and pick-off details and the accessibility of these locations. If you are accurate and clear with these details, you should be able to avoid price adjustments in your shipment, as each of these details will be accounted for in the original agreement and your quote will reflect any “additional” services.
If you’re interested in getting a quote for your next shipment, contact us today!