Clarity on LTL Notifications

What Is The Meaning of Accessorial in Logistics?

Accessorials refer to fees that are added to a shipper’s freight invoice for services that were performed by the carrier aside from pick-up and delivery that was designated.

The last few years have seen most LTL carriers revise and add a number of accessorial changes to their rules tariffs that have created opportunities to increase revenue. The challenge for shippers has been defining the meaning and how the carrier is applying a new or revised accessorial. A case for review is delivery notifications. Delivery notifications for LTL shipments take a variety of forms. They may consist of actual delivery appointments, a call before, or even a time definite request that triggers other actions by the carriers.

Each type of delivery notification is defined and carries add an additional charge to the responsible party. The challenge for shippers is defining the customer requirements in advance to apply the proper accessorial in order to match the freight accrual with the carrier invoice.

To add clarity from an overall perspective, here is a list of notification accessorials that can be negotiated as an exemption or flat charge:

1. Call Before Delivery: Also stated as “call for carrier convenience” this accessorial is defined as any requested notice by the carrier to give to the consignee that does not require a specific delivery time. Typical costs range from exemption upwards of $20.
2. Delivery Appointment Required: Defined as any request requiring a specific delivery time to be made by the carrier to the consignee. Typical charges for this level of service range from an exemption to $45 per shipment.
3. Time Definite Delivery: A time definite charge is one that states a specific delivery time is required to be made by the carrier. A time-definite delivery may take the form of “deliver between 0800 – 1200” or deliver by noon. This accessorial may be exempt or up to $50 per shipment.

Each carrier has nuances in terms of how the notification request is stated on the bill of lading. The request is also open to interpretation by the carrier’s billing team leading to unmatched invoices and missed prepaid and add opportunities with a shipper’s customers. Understanding the customer’s requirement from customer service and the carrier’s definition clarifies the bill of lading requirement to ensure each shipment delivers as planned. For further insight into our LTL accessorial charges please reach out to our carrier management team at carrier@rockfarm.com.

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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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