Introduction:

Carrier surcharges are a common occurrence in the world of shipping. But what are they, exactly? What are some of the most common surcharges? And why are they charged in the first place? In this blog post, we'll answer all of those questions and more!

What is a Carrier Surcharge?

A carrier surcharge is an additional fee that is assessed by the carrier (usually a trucking company or shipping line) on top of the base freight rate. Carrier surcharges are generally imposed to cover costs that are incurred by the carrier, such as fuel costs, security fees, and congestion charges.

While most carrier surcharges are passed on to the shipper, there are some that are charged to the consignee (the party who receives the shipment). These types of surcharges are typically referred to as destination-based surcharges.

Who Charges Carrier Surcharges?

Shipping carriers such as UPS, Fedex, and DHL typically charge carrier surcharges. These surcharges are in addition to the shipping costs that are charged by the carrier.

What Are The Most Common Carrier Surcharges?

The most common carrier surcharges include:

Fuel Surcharge:

A fuel surcharge is a fee that is assessed by the carrier to cover the cost of fuel. Fuel surcharges are generally based on the price of crude oil and can fluctuate on a monthly basis.

Oversized or Irregular Package Charge:

An oversized or irregular package charge is a fee that is assessed by the carrier for shipments that do not conform to standard shipping dimensions. This type of surcharge is typically applied to packages that are larger than 48" x 24" x 36" or weigh more than 150 lbs.

Peak Season Surcharge:

A peak season surcharge is a fee that is assessed by the carrier during periods of high demand. Peak season surcharges are generally imposed during the summer months and around major holidays.

Dimensioning Charge:

A dimensioning charge is a fee that is assessed by the carrier for shipments that where the dimensions or weight of a parcel need to be corrected. This type of surcharge is typically imposed when the dimensions or weight of a shipment are not accurately entered at the time of booking.

Why Are Carrier Surcharges Charged?

Carrier surcharges are generally imposed to cover costs that are incurred by the carrier, such as fuel costs, security fees, and congestion charges. While most carrier surcharges are passed on to the shipper, there are some that are charged to the consignee (the party who receives the shipment). These types of surcharges are typically referred to as destination-based surcharges.

How Do Surcharges Effect Shipping Costs?

Carrier surcharges can have a significant effect on the total cost of shipping. For example, a fuel surcharge that is assessed by the carrier can add additional costs to the shipment. Carrier surcharges are generally passed on to the shipper and can be assessed on a per-shipment basis or a percentage of the shipment cost. These costs can greatly effect your shipping cost so it is important to know which if any surcharges will apply to your shipment.

When Are Carrier Surcharges Charged?

Carrier surcharges are generally assessed on a per-shipment basis or a percentage of the shipment cost. Carrier surcharges can be charged at the time of booking, at the time of pickup, or at the time of delivery.

In Conclusion:

Carrier surcharges are a common occurrence in the world of shipping. But what are they, exactly? What are some of the most common surcharges? And why are they charged in the first place? In this blog post, we've answered all of those questions and more! We hope you now have a better understanding of carrier surcharges and why they're charged. Thanks for reading!