Shipping Surcharges: What are they?
You may be surprised to find out that shipping surcharges can be one of the biggest reasons for increased shipping costs. Private carriers usually charge these surcharges when shipping an item and they may take a number of different forms.
In more simple terms, shipping surcharges are fees tacked on to your order due to certain factors, such as an oversized package or weekend delivery. Shipping costs can quickly add up if you don’t consider these different factors. You can save money when you decide to ship your goods if you know the common types of surcharges.
Common Shipping Surcharges
There are a number of different shipping surcharges charged by private carriers, with these five being the most common:
Fuel Surcharge:
Fuel surcharges are largely determined by the price of oil, which can increase or decrease depending on current market conditions.
Residential Delivery Surcharges:
Shippers who set the delivery destination in residential areas are subject to a residential delivery surcharge. Depending on their delivery system, carriers determine which areas are residential.
Oversize Package Surcharge:
When the scope or weight of a shipment exceeds the carrier’s policy thresholds, a surcharge may apply. Carrier-specific policies may differ from time to time and may also change. Whenever you ship, taking the time to ensure that packages are the appropriate weight and size can save you a great deal of money.
Saturday Surcharge:
It is usually more expensive to deliver and pick up items on weekends than on weekdays. In the long run, you can save a lot of money if you wait for a weekday to ship. Weekend deliveries have a significant price hike.
Fuel, residential delivery, and Saturday charges are not applied by the United States Postal Service (USPS).
Less Common Shipping Surcharges:
There are some carriers that can apply these types of surcharges less frequently than others.
Signatures Surcharge:
You will be charged this fee if you want your package’s recipient to sign for it. You can request an adult, direct, or indirect signature, depending on the signature type. Costs vary depending on which type of signature you request, with adult signatures typically being the most expensive and indirect as the least expensive.
Address Correction Surcharge:
You may have to pay an address correction surcharge if you make a mistake in the delivery address. Making sure you are sending your package to the correct address before sending it can help you avoid this surcharge.
Delivery Area Surcharge:
There may be a delivery area surcharge applied to more rural and outlying areas. The cost of shipping outside of a carrier’s network is typically higher, thus the need for an additional surcharge.
Declared Value Surcharge:
This type of surcharge is applied when your package contains items valued at more than $100. This is due to the item exceeding the carrier’s liability limit.
How to Avoid Shipping Surcharges?
The more you understand the common and some of the less common shipping surcharges, the less likely you are to inflate your shipping costs.
Alternatively, a freight company like a freight forwarder may be an easier option. They often have preferred rates with carriers and can help you ship products at lower costs domestically or internationally.
If you’re in need of expert advice, come talk to Falcon today and we will provide you with the best possible service and quotes for your shipping needs. Feel free to contact us through our official website or call us at 626-604-1188
