Top 10 Intermodal Accessorial Charges & How You Can Avoid Them?
The world of intermodal shipping can be very complex at times. In this regard, with myriad modes of transportation working by coordination, there is the need to be aware of all the possible pitfalls under intermodal accessorial charges. Unless managed carefully, these additional charges eventually become an imprudent surprise to the shipper. In this post, we will discuss the ten most common intermodal accessorial charges and how to avoid them.
1. Detention Fees
Containers owned by the port are used for moving goods. Detention fees apply if these containers are kept at the warehouse too long and not returned to the port on time. To avoid these fees, complete all paperwork and customs processes quickly. Plan pickups and deliveries carefully to return containers on time and avoid extra charges.
2. Demurrage Charges
These charges happen when a loaded container stays too long at a port or terminal, past the free time allowed. Demurrage charges are similar to detention fees but specifically for containers that stay too long at the terminal. To avoid these charges, carefully track container use and plan pickups or deliveries to fit within the free time.
3. Liftgate Charges
If delivery is arranged to locations that do not have a loading dock, the shipment will be offloaded using a liftgate, and, therefore, a charge for lift gates is incurred. Avoid these charges by ensuring that the delivery destination does have a loading dock or that employment is set to have the container delivered to a destination with a loading dock.
4. Redelivery Fees
If delivery fails and there has to be a re-try at delivery, redelivery fees will be incurred. These can be minimal to extremely costly. Obtaining the correct delivery address and recipient's particulars and ensuring that somebody can receive the cargo can help prevent additional redelivery charges.
5. Re-consignment Fees
These are usually referred to as re-consignment charges if made after dispatch. In most cases, they result in extra handling and backend paperwork. To avoid any re-consignment charges, one needs to properly check everything concerning the shipment before it is dispatched, and if any change is required, one must inform the person concerned as soon as possible.
6. Overweight Charges
Overweight charges are applicable if a container's weight limit is exceeded. Such fees may be colossal, especially when there is a significant overweight. The weight of the cargo has to be cross-examined with the specification of the container to avoid such extra charges.
7. Storage Fees
These are costs charged if containers or cargo are retained in a terminal or warehouse longer than the provided free storage period. Arrange your shipment to match your capacity to handle warehousing so that there will be no unnecessary cost for you in the form of raised storage fees.
8. Customs Brokerage Fees
Another typical intermodal accessorial fee is a customs brokerage fee. It is "fees for services provided by a Customs Broker that clear the goods through customs. While these services may be needed, their price will vary. To control these fees, work with a customs broker who provides transparent pricing. Also, as much customs documentation as possible can be completed in-house.
9. Documentation Charges
These are some of the charges for processing and handling shipment documents—from bills of lading to customs documentation. Such charges can add up quickly if the documents are lost or in error. To avoid these documentation fees, make sure to get all the paperwork correctly filled out and on time.
10. Fuel Surcharges
Fuel surcharges are known to fluctuate based on fuel cost and otherwise can be arbitrary. These surcharges become quite unpredictable. Help control this fuel surcharge by negotiating fixed rates with your carriers or partnering with a logistics provider with fuel-efficient options.
Conclusion
As much as intermodal shipping confers the twin benefits of efficiency and cost-effectiveness, it is important to notice some of the most common intermodal accessorial charges. Knowing such fees and having several proactive measures in place to avoid them can help you reduce surprising costs and keep your logistics costs under budget.