If your carrier suddenly adds or changes a fee that will significantly affect your shipping charges it may be time to renegotiate your contract. Remember, carrier contracts work both ways. Shippers need transportation to move parcels, and often need a national carrier to do it. But carriers need to retain clients. They are usually willing to make some exceptions to do so.
Carriers have dozens of different surcharges. It may be several years before one fee matches another, and switching carriers could save you thousands of dollars in the meantime. And if you decide to renegotiate your contract whether it is this year or in the future, we can help you prepare.
Our team has a proven track record of saving our partners 15 to 20 percent on shipping. Next time your carrier suddenly modifies surcharges, reach out to see how we can help you save. Incurring an oversize package surcharge can result in a substantial increase in shipping costs for shippers.
This highlights the need for shippers to be particularly mindful of situations where they might incur an oversize package surcharge and to be aware of alternative shipping options for those packages. Both UPS and FedEx apply oversize package surcharges when a shipment exceeds either the size or weight thresholds they have set forth.
For both private carriers, shipments cannot exceed the dimensional girth of inches. Weight thresholds depend on the delivery network the shipper chooses to use. If a package has a dimensional girth smaller than inches, but weighs over the threshold set by the carrier, then the package is considered oversized and charged accordingly. If a package is over both the weight and size thresholds, then the carrier may apply multiple surcharges.
The most important tip for shippers is to be very mindful of the rates for oversize packages and the thresholds set by the shippers.
These rates change frequently, requiring shippers to stay abreast of any rate changes that may impact them. If shippers frequently ship oversize or large packages, they may be able to leverage rate changes that have a substantial impact on them. For example, shippers that regularly use FedEx for transporting oversize packages may be able to negotiate their contract to eliminate handling fees on those packages, resulting in substantial cost savings.
Saturday deliveries can be excessively expensive for shippers. For shippers that frequently utilize Saturday Delivery and Pickup services, these surcharges represent a critical channel for cost increases. As the name would imply, Saturday surcharges are applied to deliveries that occur outside of the normal operating week of Monday — Friday.
Since customers are increasingly expecting deliveries to occur on Saturdays, shippers must explore alternative avenues of delivery. These surcharges include:. This is a surcharge for packages that require a signature upon delivery. Signature surcharge prices vary depending on the service. Address correction surcharges are applied when a shipment has an incomplete or incorrect address that the carrier must seek to correct.
A delivery area surcharge is applied for shipments whose destination is outside of the standard delivery area for that network. A declared value surcharge is applied to packages whose value exceeds the carriers liability limit. The weekly service charge is applied for shippers who have regularly scheduled pickups from a carrier. Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear.
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How Fees Work A fee is a fixed price charged for a specific service and is paid in lieu of a salary. A fee can also be additional charges on a good or service.
How Does a Checking Account Work? A checking account is a highly liquid deposit account held at a financial institution that allows deposits and withdrawals. Understanding Taxes A mandatory contribution levied on corporations or individuals by a level of government to finance government activities and public services. The harmonized sales tax is a hybrid of the Canadian goods and services tax and provincial sales tax applied to goods and services.
Partner Links. Related Articles. Credit Cards Foreign Transaction Fee vs. Currency Conversion Fee: Know the Difference. National Debt Explained: History and Costs. The most common surcharges carriers use include:. These areas tend to be very remote and not easily accessible, so delivery takes a lot longer than average. The exception here are government entities, like USPS, which are required to serve all areas, even the most remote, without a surcharge. These prices are adjusted weekly based on the current cost of fuel.
If a shipment requires the use of additional services or machinery, you will be charged an accessorial fee. An accessorial might be charged for things like liftgate service, re-delivery or address correction. Weekend delivery surcharges, express service surcharges, and overnight shipping surcharges are the most common. Saturday delivery fees are especially common with carriers that deliver on weekends. Of course, this will also come at a cost.
Beyond needing to pay for the actual delivery service, these surcharges specifically cover the special treatment these packages require. If you need the security of a required signature at pickup, popular for items like medication and electronics, carriers will charge a fee to perform the service. Packages delivered to residential areas typically come with a fee. The extra time required to find, park, and deliver to a home comes at the cost of a residential delivery fee. This is usually a separate fee from any insurance surcharges.
If they never use the label, the retailer will never be charged. These charges cover just about anything else. OS other shipping surcharges might cover an international shipping fee, a carton neutral fee, freight fees, or something else entirely.
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