Explanation of Unusual Regulations

  1. When shipping multiple POs from the same manufacturer to the same consignee, all POs must be listed on the same bill of lading (or a master bill of lading must be used), in order for the carrier to treat the shipment as one single shipment. For instance, if three bills of lading are used because three different POs are shipping, the less-than-truckload carrier will charge for three different shipments. If three POs are shipping but are all on the same bill of lading, the less-than-truckload carrier will treat it as one shipment. When carriers quote rates for freight, clients receive breaks in pricing based on how much weight they ship. For instance, shipping 501-1000 lbs is slightly cheaper per pound than shipping 0-500 lbs (they give breaks based on increments of 500 lbs, usually). Therefore, when the merchandise is not listed on the same bill of lading together, even though the freight ships together, rides together and is delivered together – it's still treated and rated as three different shipments. This results in higher freight costs.
  2. When negotiating tariffs (contract pricing) with less-than-truckload carriers, most try to negotiate the best discount. The discount can be based on a multiple rate basis (sometimes you get a rate base from a past year to get cheaper pricing than what is currently being used) and can be subject to assessorial charges. Some of these charges can include being charged if you only ship one shipment a day – known as single shipment charge. The carrier will actually charge an additional $15-$20 per shipment if loading only one shipment that day. However, if you have two shipments you do not get charged. Other accessorial charges include:
    1. Notification charge – $15-$20 if the carrier has to call ahead to consignee before making delivery.
    2. Construction site delivery – $65 if facility where unloading is taking place is under construction (sometimes carriers try to charge this on hotel renovation jobs or a new construction).
    3. Fuel Surcharge – an additional charge based on a percentage of national fuel costs (1-10% on top of freight charges).
    4. Deliveries scheduled for non-core business hours –includes additional charges for deliveries that are before 8am, after 5pm and weekends.