Logistics

What Is a Carrier Surcharge? – Common Surcharges & Why They’re Charged

Find out what carrier surcharges are, why they exist, and the most common types of them. Understand how to avoid or reduce those fees!

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!

parked fedex van on the asphalt road
Photo by Mike Shinzo on Pexels.com

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.

a man arranging cardboard boxes in the van
Photo by Kampus Production on Pexels.com

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.

DHL Van passing Eagle London in Kennington Lane
DHL Van passing Eagle London in Kennington Lane by PAUL FARMER is licensed under CC-BY-SA 2.0

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.

person putting gasoline on a vehicle
Photo by Erik Mclean on Pexels.com

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.

man in white polo shirt standing
Photo by Artem Podrez on Pexels.com

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.

man in white tank top ironing red top
Photo by cottonbro on Pexels.com

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.

close up photo of yellow tape measure
Photo by Marta Longas on Pexels.com

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.

calculator and notepad placed over stack of paper bills
Photo by Karolina Grabowska on Pexels.com

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.

anonymous man preparing package for shipment
Photo by Karolina Grabowska on Pexels.com

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.

white and black weekly planner on gray surface
Photo by Bich Tran on Pexels.com

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!

Leave a Reply

%d bloggers like this: