the Most Frequently Charged Accessorial Services by FedEx/UPS

Accessorial charges are fees that incurred in addition to its base rate. Some of the most frequent accessorials are corrected bill of landing, notification prior to delivery, redelivery, residential pickup, non-business delivery, additional handling surcharge, address correction, currency conversion and fuel surcharge. It is not only hard for companies to pass the accessorial fees along to customers (because it usually happens after the fact), but also difficult to identify the charges due to the great volume of bills and the complexity of auditing.

Although accessorial fees vary with the service provider, about 20% -40% accessorial fees increases every year. Here are the UPS/FedEx most frequently charged accessorial services and the fees:

Description & FeesServices	Service Description	FedEx		UPS			Average
		Min[i]	Max	Min	Max		Min	Max
Address Correction	If a recipient’s address on an airbill, air waybill or shipping label is incomplete or incorrect, the carrier may attempt to find the correct address and complete delivery.	$12[ii]	65	11	55		11.5	60
Additional Handling Surcharge	A surcharge applies to any package that weight and packages not meet the requirements of carriers.	8.5	110	8.5	/		8.5	/
Delivery Area Surcharge	A delivery area surcharge applies to package shipments destined to select U.S. ZIP codes.	1	10.75	2	3.75		1.5	7.25
Delivery Attempt	If the carrier cannot complete delivery of a U.S express freight or international express freight shipment on the initial delivery attempt, the freight will be returned.	48	/	27.8	/		37.9	/
Large Package Surcharge	The package oversize the maximum package requirement of the carriers.	55	/	55	/		55	/
Missing/Invalid Account Number or Refusal Fee; Chargeback for Consignee Billing Shipments	A processing fee will be charged for a missing or invalid account number when the account number is missing, the account number is not the correct number for the bill-to party, the account number is for a receiver or third party who fails to pay the shipping charges, or the package is shipped to an unauthorized consignee.	12	/	12	25		12	/
Fuel surcharges		Adjudge Monthly		Adjudge Monthly			/	/
Hazardous Materials	package containing hazardous materials	27.5	/	27.5		37.5	27.5	/
Redelivery	If more than one delivery attempt is made.	12	65	27.8		116.5	19.9	90.75

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[i] Fees vary by shipping services. FedEx services including U.S. Express Package Services, International Express Package Services, FedEx International Priority Freight, FedEx International Economy Freight, etc. UPS Services include package and air freight.

[ii] All pricing are in dollars.

Many shippers don’t realize how much they can save from those accessorial fees by learning the accessorial report. For example, if a shipper has a wrong customer address included in their data base, the carriers charge the Address Correction fee every time the shipper ship products to that customer.  It is not easy for the shipper to find out the wrong address, because of the great volume of the bills and the complicated invoice auditing process. Using the latest technology and the best industry proven practice, Intune logistics provides clients with the Accessorial Reporting to help them identify accessorial charges fast and correctly.

How much can you save on your freight invoice auditing? Click here for Free Saving Analysis.

Questions? Comments? Contact us now! we are ready to help you saving your precious time and money.

Reference

https://fmx.cpa.state.tx.us/fmx/audit/topten.php

http://www.fedex.com/us/services/pdf/Fees_Shipping_Information.pdf

http://www.ups.com/media/en/additional_charges_daily.pdf

We Have Published Our New Official Website !

After months of hardworking, we are very excited to announce that we have published our new official website!

We have made many big changes on our new website. When we were designing, the rule of thumb was the improvement of visitor experience. First of all, we want to make sure that our visitors can find any information they want to learn about us as easily as they can. We managed to put the content as simple and as clear as we can, so that they can be fully understood. Visitors will also be able to reach us in a fast and a convenient way whenever they need.

We have kept the dark blue as our main color. We also maintained the professional and concise style. To help our visitors to understand us better, we included the detailed descriptions about services that we offer and technology features that our client portals have. Case study is a new part. By learning about our clients’ experience with us, visitors would have a general idea about our business.

Finally, we offer the free saving analysis because we are so confident that no matter what size of your business is, as long as you ship via DHL/FedEx/UPS or other carriers, you will have a good chance of saving time and money. Try out the analysis.

How do you like our new website? We can’t wait to hear from you. Leave comments or contact us here.

What are Different Types of Invoices?

We answered your question about what are freight invoices last time. Let’s take a look at the varieties of invoices today. Invoices varies depends on industries, transactions and countries. We can divide the most used invoices[1] as below:

• Divided by Industries:

Timesheet is used for hourly services, such services provided by lawyers and consultants often pull data from a timesheet.

Progress billing used to obtain partial payment on extended contracts, particularly in the construction industry.

Invoicing The term invoicing is also used to refer to the act of delivering baggage to a flight company in an airport before taking a flight.

Continuation or Recurring Invoicing is standard within the equipment rental industry, including tool rental.

Commercial invoice a customs declaration form used in international trade that describes the parties involved in the shipping transaction, the goods being transported, and the value of the goods.

• Divided by Transactions:

Pro forma invoice in foreign trade, a pro forma invoice is a document that states a commitment from the seller to provide specified goods to the buyer at specific prices. It is often used to declare value for customs. It is not a true invoice, because the seller does not record a pro forma invoice as an accounts receivable and the buyer does not record a pro forma invoice as an accounts payable.

Credit memo if the buyer returns the product, the seller usually issues a credit memo for the same or lower amount than the invoice, and then refunds the money to the buyer, or the buyer can apply that credit memo to another invoice.

Debit memo when a company fails to pay or short-pays an invoice, it is common practice to issue a debit memo for the balance and any late fees owed. In function debit memos are identical to invoices.

Nowadays many invoices are no longer paper-based, but rather transmitted electronically over the Internet. Intune Logistics focuses on top-notch technology. By highly automating the labor-intense freight invoice auditing activities, we are able to dramatically save clients time and money. Questions? Contact us here.

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[1] For more information: http://en.wikipedia.org/wiki/Invoice

What are Freight Invoices?

We deal with invoices on a daily base: we receive invoice when we check out in the market, in the restaurants , or even shop online. Companies issue invoices to customers and receive bills from suppliers. How do you define invoices and what are freight invoices? We are here to answer your question today.

An invoice, is also known as a bill, is a commercial document issued by a seller to a buyer, indicating the agreement on products, quantities, and agreed prices for products or services the seller has provided the buyer. An invoice indicates the sale transaction only.

Freight invoices refers to the bills a carrier issued to the shipper for freight charger applicable to a shipment. A freight invoice usually consists of:

•  Description of the freight,
•  The name of the shipper and carrier,
•  The point of origin of the shipment,
•  Weight and size,
•  The amount of charges.

Intune logistics providing reliable freight invoices auditing service using leading technology and industry proven best practices. Question? Please don’t hesitate to contact us here!

What is Small Package Auditing?

Small package audit & recovery is one of the most popular services that Intune Logistics provides. Some clients may ask questions like what is small package audit? Who use small package audit? Why outsource small package audit? Today we are here to answer these questions.

Small package audit is a specialized service deals with the intricacies of the invoicing and audit of freight bills issued from carries like UPS, FedEx and DHL. Most carriers do not record all the necessary information on the bills precisely, so it is hard for clients to identify opportunities and recover unnecessary costs. Even though correct information is recorded, it is extremely time-and-labor consuming to find out problems through hundreds of thousands of bills monthly.

Most organizations do not have the manpower to calculate all the freight invoices issued to them and at best, they perform random sampling to check if the sample invoice is billed correctly. Some organizations have the manpower to perform freight audit themselves, the manual and tedious efforts required for a freight audit will usually end up much more expensive than an outsource vendor might be able to provide.

With specially designed technology features that meet the complexity of small package problems, and 10-year small package audit experience, Intune Logistics can ensure the efficiency and effectiveness of processing freight invoices as our services include audits for freight rates, discounts, misapplied accessorial charges and prevention of possible duplication of payments.

No matter the size of your company or how much you spend on freight, if you are making small package shipments, Intune can save you money and time with our comprehensive small package audit & recovery service. Free Trial!

Did we answer your questions? If not, we are more than glad to help you.