the Most Frequently Charged Accessorial Services by FedEx/UPS
December 20, 2013 Leave a comment
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 | |
[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.
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Reference
https://fmx.cpa.state.tx.us/fmx/audit/topten.php
http://www.fedex.com/us/services/pdf/Fees_Shipping_Information.pdf
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