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COACHES CORNER: Accessorial Trends

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We have been seeing new ways carriers are reacting to shippers and receivers that take productive time out of a driver’s day. Picking up a shipment and delivering a shipment are the necessities to bill revenue, however, it is the movement of the shipment that drives the revenue. Regardless of mode, carriers are increasing existing accessorials and creating new ones to align with market shifts in e-commerce or regulations such as the ELD Mandate.

Recent accessorial adjustments by carriers include the following:

  • 2020 large package increases are in store for both FXF and UPS parcel services 2020 as packages weighing between 50 to 70 pounds will see a 15 – 24% rate increase.
  • LTL rating rules use the total weight delivered by the carrier across multiple shippers to a single consignee to apply detention charges. Absent in the formulation is a mechanism to measure the time required to deliver “your” shipment.
  • A limited access charge, though not new, the accessorial is more broadly used. Limited access locations may now include rural, government, and any location that has limitations on delivery equipment types.

To receive a complete listing of accessorial charges we see on a recurring basis please contact carrier@rockfarm.com.

Editor’s Note: As we head into the holiday season and take a break during Thanksgiving we would like to thank you for being a part of our readership. If there are any subjects you would like us to explore further please do not hesitate to drop us a line at supplychaincoach@rockfarm.com.

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Brad Stewart, President

By Brad Stewart

Co-Founder, CCO

Brad’s journey into logistics began as a Marine Officer and transitioned from the LTL docks to the non-asset side within the logistics service provider arena.  As a co-founder of Rockfarm, Brad drives our business development efforts and delivery of our promise. An Arizona native, Brad enjoys spending time outdoors in his home state with his wife and family.

“Our approach to the market allowed us an opportunity to push forward in 2008 and enable our mission, “lower the cost to serve” to stand as a cornerstone to our company today.”

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