Understanding Shipping Surcharges

When it comes to shipping your products, knowing what you’re being charged for is critical. You simply print out your shipping label and check the stated cost. This price is not carved in stone. The expense is more of an estimate based on size, weight, and destination. However, once your item begins moving, everything can change completely. If the carrier finds any mistakes in your information, the price may change. If there are issues with the delivery or additional charges are required as a result of circumstances, those costs are added to your total bill. Surcharges are fees charged beyond what is necessary for a service or product.

Surcharges are assigned in proportion to the value of each individual service. While you’re unlikely to receive all of these items in one shipment, it’s a good idea to be aware of any additional costs that may be applied to your packages.

Shipping Surcharges Include…

This is an extra cost for any package over 48 inches in length.

This fee is for rural addresses or areas outside of a specified range around the UPS or FedEx hubs.

FedEx and UPS charge the fuel surcharges into their prices, which are used to reimburse them for the gasoline they use while delivering. USPS will add an extra fee for this.

Signature surcharge: A charge to have them receive a signature upon delivery.

Residential surcharge: It’s a requirement that your company has an established place of business and that you’re not running it out of your home.

Declared value surcharge: Shippers can disclose the package’s worth in the event that it is stolen, lost, or damaged during transit. This protects their investment for items valued $100 or more and provides shippers peace of mind that the goods are safe.

Delivery reattempt surcharge: This may happen if their first attempt to deliver the package was unsuccessful.

OS extra surcharge: This is “other shipping” fees, which you may or may not be charged when you order from a store. If your company has an accounting system that can notify you if there are any incorrect or unexpected charges on your account, you can watch for these surcharges.

Oversized package surcharge: For large shipments, the extra handling fee also applies.

Saturday delivery surcharge: The package must be sent on Saturday if that is the case.

Isn’t it a long one? Although these fees will not apply to all of your shipments, if they do, the expense can mount up. Unfortunately, they are here to stay. There will always be surcharges. Efficiency is improving as the rate at which manufacturers can produce items increases. Because of these technological advancements, forward chain processing has become more essential for carriers to manage shipping volumes, steer shipping patterns, avoid box congestion, and forecast demand.

We can’t totally get rid of surcharges, but what does preventing them look like? APIs (Application Programming Interfaces) are software that may assist you in understanding and calculating shipping costs as well as printing out labels. These sometimes include address verification as well. It’s also a good idea to double-check your information. Checking it three times is excellent, but doing so a fourth time may be impossible. There’s a good chance you won’t wind up paying those little fees if you outsource to a 3PL firm. Third-party logistics firms (3PLs) and fulfillment centers handle a significant number of shipments for their clients. These firms can not only handle bigger freight, but they are frequently able to negotiate carrier contracts as well. These can include reduced or even total surcharges. Now that’s a situation in which everyone comes out ahead.

Surcharges are inconvenient, so keep an eye on your shipping options and labels. If that’s the case, seek assistance. Whether it’s APIs or a 3PL firm, assistance is never a bad thing. If you need assistance, we’re here to help. Don’t be afraid to contact us; we’ll do everything we can to assist you. Order Fulfillment surcharges apply as well, so be sure you understanding shipping surcharges.