Picture this: You're a logistics manager at a growing business, trying to make sense of your shipping costs. You thought you had it all figured out—your budget, your timelines, your routes. But then you get the bill, and it's higher than expected.
Enter the world of intermodal accessorial charges. These are the hidden fees that can creep up and wreak havoc on your carefully planned budget without proper planning.
If you’ve ever felt frustrated or blindsided by unexpected shipping costs, you’re not alone. We see situations like this all the time and we’re here to help you navigate these tricky waters to help you stay focused on your supply chain cost, capacity, and sustainability goals.
We touched on the topic of intermodal accessorials in a recent article and thought there was more to say about common accessorials that we often see hold people back from using intermodal in their logistics strategy.
By the end of this article, you’ll walk away with a clear understanding of the 10 most common intermodal accessorial charges, what they mean for your business, and most of all ... how to manage or even avoid them.
Detention charges occur when a truck is held up longer than the allotted free time during loading or unloading. Think of it like a taxi meter running while the driver waits for you to finish your errands. Typically, there are two free hours at origin and another two free hours at destination before charges begin.
Every minute beyond the free time costs you money, adding up quickly and inflating your shipping expenses. These charges can range from $50 to $100 per hour, depending on the carrier and the circumstances.
Demurrage charges are fees incurred when your cargo stays at the terminal beyond the free time allowed. Imagine leaving your luggage at the airport for too long and being charged for it.
These charges can quickly escalate, often costing $75 to $200 per day. They can significantly impact your bottom line if not managed properly.
Storage charges apply when your cargo remains in the terminal’s storage facilities beyond the free period. It's like paying for parking when you leave your car in a lot for too long.
While both intermodal and truckload shipments can incur storage charges, intermodal tends to have more structured free time and clearer guidelines, potentially reducing the risk of unexpected fees.
Chassis usage fees are charged when a chassis, the framework that holds and transports your intermodal container, is used beyond the free period. It's like renting a dolly to move heavy furniture and being charged if you keep it too long.
These fees can add up, especially if the chassis is in high demand or you need it for extended periods. They typically cost $20 to $40 per day.
Per diem charges are daily fees for using a carrier’s equipment beyond the free time. It’s like paying daily rent for a piece of equipment you borrowed.
These charges can quickly accumulate, ranging from $25 to $100 per day depending on the equipment and carrier.
Pre-pull charges occur when a container is picked up from the terminal and stored temporarily off-site before final delivery. It’s like moving your belongings to a storage unit before finding a permanent home.
These charges typically apply when there are delays at the final destination, or when the terminal needs to clear space. Under the thinking of minimizing accessorial fees, your intermodal provider may suggest this action and fee if your destination location absolutely cannot take the delivery and storage is the only alternative.
The reason to take this step is because pulling the container from the intermodal ramp to an off-site storage location is significantly less expensive than fees associated with on-ramp storage.
Peak season surcharges are additional fees charged during high-demand periods. It’s like paying more for a hotel room during a popular holiday.
These surcharges can significantly increase shipping costs, especially during holiday seasons or industry specific peak times.
Scale ticket fees are charges for weighing your shipment. It’s like paying to use a public scale to weigh your vehicle.
These fees are often required when shipping companies need to verify the weight of cargo to comply with regulations or ensure safe transport.
Overweight charges apply when your shipment exceeds the weight limits set by the carrier or by state, federal and international (if applicable) regulations. It’s like paying extra for overweight luggage on a flight.
These charges can be substantial, potentially doubling the cost of shipping if your cargo is significantly overweight and requires the shipment to be re-worked.
Flip charges, also known as lift charges, are fees incurred when a container needs to be flipped from one chassis to another.
Flip charges charges typically range from $75 to $150 per flip, depending on the terminal and the specific requirements.
Flip charges commonly apply in situations where:
Call this as number 11 on our top 10 list of intermodal accessorials. With everyone being so familiar with the fuel surcharge on their truckload freight bills, it didn't seem important to call it out as an intermodal-specific fee. It is, however, on almost every intermodal freight invoice.
Fuel surcharges are additional fees to cover the fluctuating cost of fuel. It's similar to paying more for a ride-share during peak hours.
Both intermodal and truckload have similar schedules where it is charged either as a percentage of the linehaul or a cost per mile. Freight providers update their fuel charges based on how the EIA (US Energy Information Administration) updates the national diesel fuel rates, which are published every Tuesday morning.
Managing intermodal accessorial charges can be a daunting task, but understanding these common fees is the first step in controlling and optimizing your intermodal shipping costs. By being proactive, communicating effectively and planning efficiently, you can minimize these charges and keep your shipping budget on track.
Being informed and prepared is the key to successful and cost-effective shipping. At InTek Freight & Logistics, Inc., we understand the complexities and opportunities of modern logistics. Our goal is to help you navigate these to create a more sustainable and efficient supply chain.
By understanding and leveraging the benefits of intermodal shipping, your business can not only achieve its sustainability goals but also gain a competitive edge in the market. So, why wait? Request a quote with us today to take the first step to a positive impact on both your business and the environment.