As a shipper, the last thing you want is an unwanted surprise when you get your freight bill. Before the additional fees add up, it pays to know your accessorial charges beforehand

Accessorial charges, sometimes referred to as value-added services, are additional fees that may be added to a shipment’s transportation cost. These charges are applied to cover the cost of extra time, labor, or care required to honour special shipping requests. Accessorial fees vary based on the type of shipment and can quickly add up, making it important for shippers to understand what they are and how they can reduce them.

What Are Accessorial Charges?

Accessorial charges are extra fees that are added to the base price of a service, primarily in industries that involve transportation, logistics, and deliveries. They are typically applied when certain conditions or requirements are not met, or additional services are needed. Essentially, they cover the “accessories” of the primary service. Similarly, these charges are designed to compensate for the extra time, effort, or resources required to complete a job.

Since accessorial charges can significantly impact a shipment’s total cost, it’s essential for shippers to understand them to avoid unexpected expenses. By planning and minimizing these charges, shippers can reduce their transportation costs thus improving their bottom line. In the following sections, we will explore what accessorial charges are, why they are important, and how you as a shipper can reduce them.

Understanding Accessorial Charges

It is essential to note that accessorial charges are not included in the standard shipping rates and are typically added on top of the base cost of the shipment. These fees can vary depending on the carrier and the specific services required, making it critical to review and understand all charges before finalizing a shipment.

Common accessorial charges can include a wide range of fees, such as liftgate services, inside delivery, residential surcharges, and fuel surcharges. Carriers and freight brokers may apply these fees for various reasons, such as extra labor or equipment needed to complete a shipment.

Types of Accessorial Charges

When it comes to shipping, accessorial charges can add up quickly. These additional fees are charged for any services beyond standard pick-up and delivery. To help you better understand what to expect, here are some common types of accessorial charges that you may encounter:

Loading and Unloading Fees

Loading and unloading fees are charged when a shipment requires additional labor or equipment to load or unload. This may include the use of a forklift, loading dock, or extra labor. These fees can vary depending on the carrier and the specific requirements of the shipment.

Delivery Related Charges

Delivery related charges include any additional services required at the delivery location. This may include inside delivery, residential delivery, or liftgate service. Inside delivery is charged when the shipment needs to be delivered beyond the front door, while residential delivery is charged for deliveries made to residential areas. Liftgate service is charged when the delivery location does not have a loading dock or forklift available.

Fuel and Time Related Charges

Fuel and time related charges are fees that are charged based on the distance traveled and the time required to complete the delivery. Fuel surcharges are added to the base rate to cover the cost of fuel, while detention charges are charged when a shipment is delayed at either the pick-up or delivery location. Layover charges may also be charged when a driver is required to wait for an extended period of time.

Special Handling and Equipment Charges

Special handling and equipment charges are fees that are charged when a shipment requires special handling or equipment. This may include hazardous materials, oversized or overlength shipments, or extra services such as reclassification or reweighing. Hazardous materials require special handling and may require additional documentation, while oversized or overlength shipments may require special permits or equipment.

Documentation and Reclassification Charges

Documentation and reclassification charges are fees that are charged when a shipment requires additional documentation or reclassification. This may include the preparation of a bill of lading (BOL) or freight invoice, as well as reclassification and reweighing of the shipment. The National Motor Freight Classification (NMFC) number is used to determine the correct classification for a shipment, and any errors in classification can result in additional fees.

Additional Types of Accessorial Fees

Provided you know the scope of accessorial charges, they can be anticipated and included on the initial bill. Additional reasons for these charges may include:

• Layover Charges
• Re-consignment
• Stop Charges
• TONU (Truck Ordered and Not Used)
• Detention
• Limited Access Pickup or Delivery
• Blind Shipments
• Sort and Segregate

Overall, understanding and being familiar with the various types of accessorial charges can help you better prepare for the total cost of your shipment. By working with a reputable carrier or freight broker, you can ensure that you are aware of any potential fees and can make informed decisions about your shipping needs.

Strategies to Negotiate and Reduce Accessorial Charges

When it comes to reducing accessorial charges, negotiation is key. By working with carriers to establish clear expectations and guidelines, shippers can reduce the number of accessorial charges they incur. Here are some strategies to help shippers negotiate and reduce accessorial charges:

Planning and Communication

One of the most important strategies for reducing accessorial charges is effective planning and communication. Shippers should work closely with their carriers to establish clear expectations for pick-up and delivery times, as well as any special requirements for loading and unloading. By providing carriers with accurate information in advance, shippers can help ensure that shipments are delivered on time and without incident, reducing the need for additional charges.

Accurate Information

Another key strategy for reducing accessorial charges is providing carriers with accurate information about the shipment. This includes the weight and dimensions of the shipment, as well as any special handling requirements. By providing carriers with accurate information, shippers can help ensure that the shipment is loaded and transported safely and efficiently, reducing the risk of damage or delays that can result in additional charges.

Advance Notification

Shippers should also provide carriers with advance notification of any changes to the shipment, such as a change in delivery address or a delay in pick-up. By providing carriers with advance notification, shippers can help ensure that the shipment is delivered on time and without incident, reducing the need for additional charges.

Negotiation

Finally, negotiation is key to reducing accessorial charges. Shippers should work closely with their carriers to negotiate rates and establish clear guidelines for when accessorial charges will be assessed. By establishing clear guidelines and negotiating rates in advance, shippers can help ensure that they are not surprised by unexpected charges and can budget accordingly.

In conclusion, shippers can reduce accessorial charges by effective planning and communication, providing carriers with accurate information, providing advance notification of any changes to the shipment, and negotiating rates and guidelines with carriers. By following these strategies, shippers can help ensure that their shipments are delivered on time and within budget.

Role of Logistics in Managing Accessorial Charges

Logistics plays a crucial role in managing accessorial charges. Accessorial charges refer to additional services that a carrier provides beyond the standard shipping services.

Logistics companies are responsible for managing accessorial charges by negotiating with carriers to ensure that the charges are reasonable and fair. They also work with shippers to identify potential accessorial charges and develop strategies to minimize them. By doing so, logistics companies can help shippers save money and improve their bottom line.

In addition to negotiating with carriers, logistics companies also use technology to manage accessorial charges. They use transportation management systems (TMS) to track shipments and monitor carrier performance. This technology allows them to identify potential accessorial charges and take action to prevent them from occurring. For example, if a shipment is delayed due to weather conditions, the logistics company can work with the carrier to avoid detention charges by rescheduling the delivery time.

Third-party logistics (3PL) providers are particularly adept at managing accessorial charges. They have the expertise and resources to negotiate with carriers and manage the entire shipping process. 3PL providers can also provide shippers with access to a network of carriers, which can help them find the best carrier for their specific needs.

In the logistics industry, managing accessorial charges is essential to maintaining profitability. By working with carriers and using technology to manage these charges, logistics companies can help shippers save money and improve their bottom line. Effective management of accessorial charges requires a combination of negotiation skills, technology, and expertise, all of which logistics companies possess.

Frequently Asked Questions

What are some common accessorial charges in the trucking industry?

Accessorial charges are additional fees that carriers and brokers charge for services beyond standard pick-up and delivery. Some common accessorial charges in the trucking industry include detention fees, liftgate fees, inside delivery fees, and re-delivery fees.

What is the difference between an accessorial charge and a surcharge?

An accessorial charge is a fee for a specific service that is not included in the base rate, while a surcharge is an additional fee added to the base rate to cover fuel, security, or other costs. Accessorial charges are typically more specific and relate to services provided, while surcharges are more general and relate to overall costs.

How do accessorial charges affect shipping costs?

Accessorial charges can significantly impact shipping costs, especially for less-than-truckload (LTL) shipments. Truckload accessorial charges are often added to the base rate and can vary depending on the type of service required. Shippers should be aware of these charges and factor them into their shipping costs.

Can accessorial charges be negotiated or waived?

Accessorial charges can sometimes be negotiated or waived, especially if a shipper has a long-standing relationship with a carrier or broker. However, it is important to note that not all charges can be waived, and carriers and brokers may have different policies regarding negotiation.

What is the typical range of accessorial charges for LTL shipments?

The typical range of accessorial charges for LTL shipments can vary depending on the carrier or broker and the specific service required. However, some common charges include detention fees ranging from $25 to $100 per hour, liftgate fees ranging from $50 to $100, and inside delivery fees ranging from $50 to $100.

Are accessorial charges the same for all carriers and brokers?

Accessorial charges are not the same for all carriers and brokers. Different carriers and brokers may have different policies and fees for specific services. Shippers should be aware of these differences and factor them into their shipping costs when comparing carriers and brokers.

What Does OS&D Mean?

In the context of LTL claims, OS&D is an abbreviation that stands for over, short and damage. To expand the meaning further, here’s a description of each term used:

• Over or Overage: The shipment quantity is over and above that listed on the shipping documents
• Short or Shortage: The shipment quantity is less than that indicated on the BOL (bill of lading)
• Damage or Damaged: The shipment was received damaged. Damage can be either externally visible or concealed within the packaging containers.

Solving Problems Associated with LTL OS&D Claims

Nobody wants to deal with the headaches of filing a claim of any kind – but it does happen. The fallout from an interruption in your supply chain will include delays, unexpected costs, lost productivity and perhaps worst of all, a loss in customer confidence.

Moreover, OS&D can become a point of contention between you the shipper and your 3PL partner as you try to hammer out the details. Both sides have to feel they’ve done the right thing towards resolving a claim.

To help you get past the problem of dealing with an OS&D claim as quickly and efficiently as possible, we thought we’d share some insight into how limit claims and improve your chances of recovering a payment.

Details of OS&D Claims

Since there are a number of aspects and circumstances that constitute a claim, here’s some further explanation on the particular elements:

Time Period for Filing a Claim

For visibly damaged goods, a shipper usually has nine months to submit a claim. Taking numerous pictures is critical in making sure there’s enough evidence to back-up the freight claim.

Similarly, don’t delay the claims process by waiting any great length of time. The success of being compensated goes down the longer you wait.

As shipping technology advances so does the ability to monitor freight claims. Using technologies such as Software-As-A-Service (SaaS) can greatly help to expedite the claims management process.

Shipper’s Responsibility for the Freight Bill

As a process, the freight bill still needs to be paid regardless of whether there is a claim in place or not. As a shipper you are still required to pay the invoice as part of the delivery service.

In other words, claiming reimbursement for a damaged shipment is a completely different process and transaction.

Bill of Lading

The importance of the Bill of Lading or BOL, can’t be underestimated. It’s the key document the carrier uses to verify all aspects of the shipment itself, especially when associated with an OS&D freight claim.

As a main point of reference in evidence, it’s the one document both parties inspect first to determine how the product was received at the warehouse or distribution centre.

Along the shipment’s journey, signing the BOL acknowledges the product arrived and verifies its condition. Before signing off on the BOL, he receiver validates the shipment quantity and inspects it to make sure there’s no visible damage to the freight.

Once the BOL is signed, the bill of lading is free and clear. This now “Free BOL” allows little to no opportunity for filing a damage or short-ship claim because title of the product is transferred at that moment.

Shortage Claim

As the name implies, a shortage claim occurs when freight arrives incomplete. The shipment is clearly missing a number of units and does not match the details described on the bill of lading.

If a consignee or receiver made a note of a shortage on the BOL, it’s relatively easy to file a shortage claim.

Concealed Damage Claim

Due to the extra layer of inspection required, concealed damage claims are more difficult to pursue and claim for reimbursement.

In comparison to obvious visible damage where you have an extended period to file a claim, most carriers will only allow concealed damage claims to be filed within five days.

Concealed Shortage Claim

Similar to a concealed damage claim, concealed shortage claims are not immediately recognized and therefore not noted on the BOL at the time of signing.

Concealed shortage claims are difficult to prove, so you’ll often find that carriers push back very hard on these claims.

As with other concealed claims, time is of the essence. You only have five business days to let your shipper know about the shortage. If you delay beyond five days, your carrier will deny your claim.

Refused Freight Claim

If a consignee is not happy with the condition of their received freight, they have the right to refuse part or all of the shipment. Examples of refused freight include: damaged freight, late shipment or wrong product.

In the case that your consignee refuses shipment, it’s returned to your carrier’s delivery terminal. Your LTL or 3PL partner will contact with the following options on what to do with the freight:

• Send it to another address
• Send the shipment back to the address of origin
• Dispose of the product of as per your company’s policy

Depending on the agreement with your provider, you may or may not have to pay the invoice.

Once again there is a critical window of time window. You must file the claim within five days otherwise the carrier can deny the claim.

Loss Claim

A loss claim makes great case for maintaining insurance as it means your entire shipment was lost by the LTL motor carrier. The majority of loss claims occur due to the shipment paperwork being separated from the physical freight itself.

In this situation, your carrier will typically have a week to try and to locate your freight. Service providers understand this does not reflect well on them. Therefor in the event the freight is not found, you will not incur shipping charges and the claim will be reimbursed quickly.

Freight Claim Reimbursement – Key Points to Keep In Mind

Successful OS&D claims begin and end at the receiving dock. Taking immediate action will help ensure the claim is quickly processed and approved.

The following lists cover the essential documents and actions required to facilitate a quick resolution:

OS&D Claim Requirements

• POD must notate any discrepancy to the BOL
• Copy of the freight bill
• Original BOL must be included
• Merchandise invoice documenting the value of goods
• Repair or replacement bill for the product
• Pictures of the damaged freight
• Damaged freight must be saved until the claim is approved

How to Improve the Product Receipt Process

• Inspect the freight immediately
• Do not sign the BOL without inspecting the freight
• Document any damages or shortages
• Notate any damage on the BOL
• Take pictures of the freight
• Store the shipment in a safe area to prevent further disturbance until the claim is approved

Here’s an easy step-by-step guide on how to ship a pallet with your products properly loaded and ready for shipping.

3. Choose the Right Shipping Pallet

• Choose a pallet suitable for a forklift, hand truck, or pallet jack
• Make sure the pallet is strong and free of damage
• Select a pallet that’s at least standard industry size (48” x 40”) box-style

For most freight shipping needs, there are two main pallet types:

Further Tips on How to Secure a Palletized Load

Here are some tips and guidelines for stacking to create a stable, safe and secure load:

Stacking Tips

Column Stacking

In a column stacking pattern, boxes or cartons are stacked in straight columns with no overlapping edges. In most cases, column stacking increases the top-to-bottom compression. For extra load stability, place corrugated pads – load protector pads, between the tiers.

Interlocking stacking

Interlocking stacking is useful if the carton contents are more rigid in nature. Interlocking cartons can also increase stability. With this method, boxes are stacked corner to corner and edge to edge for more strength.

Pallet Loading Tips

Bands

Banding is one of the most common ways of securing the bundled load to the pallet. The key is to keep the banding close to the load. This helps to to control damage, exposure, or breakage.

Small loads that don’t take up the full surface of the pallet should be centered and banded to the closest deck boards of the load’s outer edge to increase stability, not the pallet’s edge.

Load Protectors

Load-protector pads help to prevent damage to the top and bottom layers of your shipment. Protector pads also help to distribute the weight of top-loaded freight.

Load protectors at the bottom help to provide a level surface, plus they offer additional protection from pallet nail heads. Moreover, they also help to keep containers from getting caught up in the pallet board gaps.

Edge Boards

Edge boards, also referred to as angle boards, are an effective way of reducing damage to container edges that make up the load corners. To help unify the load, edge boards should run the full length or depth of the stack and increase vertical stacking strength.

Foam Cushioning

With foam cushioning, density levels can vary. Therefor it’s important make sure the foam you use is dense enough to protect your product. It’s also a good idea to test the cushioning to make sure it will stand up to actual shipping conditions.

Bracing

Rounded items that can roll or shift should be braced on a pallet base that’s forklift-accessible. The greater the shipping weight, the more sturdy the bracing should be.

What to Avoid

Overhangs and Protrusions

Uniformity is key to load safety and stability. Never let the loaded products overhang the vertical limits of the pallet. Not only does this increase the risk of punctures, package tears and product damage, it can also result in a reduction of compression strength by as much as 32 percent.

Pyramid Stacking

Because pyramid stacking doesn’t have a level top load surface, you not only limit the ability to maximize space and save shipping costs through stacking additional pallets, you also run the risk of additional damage through handling.

Common Pallet Shipping Questions

What are the most common pallet sizes? What are standard pallet dimensions?

Due to the scope and breadth of the food industry, the most common pallets used are CBA (Consumer Brands Association) sized pallets with dimensions of 48″ x 40″. In North America, these are considered the standard pallet dimensions.

The next most common pallet sizes are 42″ x 42″ and 48″ x 48″.

How do I pick the right pallet size?

Your required pallet size will depend on what you’re shipping. It will also depend on where you’re shipping it to, and how you plan to load and unload your freight.

A good start is to investigate common shipping procedures and materials used with similar products in your own industry. Because products and package sizes are fairly consistent, this will help you determine the appropriate pallet size.

How Do I choose the right type of pallet for shipping?

Once you have a pallet size in mind, give yourself a budget. As with wooden vs plastic pallets, some pallets are cheaper than others, with wood being the standard option. Depending on quality and material used, some can last longer and others can be easily recycled.

For example, if your products are heavy, you might want to consider a more robust type of pallet.

Additionally, the size and type of pallet you choose should also fit within your industry’s transportation and storage requirements.

Recommended Types of Pallets for LTL Shipping

For typical LTL and FTL shipping purposes, recommended pallets should have the following characteristics:

• Standard wood pallet measuring 40″ x 48″
• Have four-way entry capabilities
• Be relatively new and undamaged
• Sturdy enough to withstand heavy or light loads
• Support the full weight of the packaged products
• Withstand the handling required in the shipping environment
• Have minimal top board spacing to avoid forklift blade impact

Pallet Types to Avoid in LTL & TL Shipping

We don’t recommend these pallets in general:

• Corrugated fiberboard pallets
• Damaged or repaired pallets
• Pallets that are rotten or made of flimsy materials
• Pressed block-style pallets
• Molded pulp pallets
• Be made of materials that are prone to moisture

The reason the above items are not recommended is because these types of pallets and materials tend to lack sturdiness, stiffness, and strength of standard wood pallets.

How much do shipping pallets cost?

Pallet costs will vary depending on what they’re made of, quality of the construction and their size. If you need help determining a pallet that’s a good fit right for your product, business and logistical needs, contact our customer support team.

How can I find or buy shipping pallets?

There are a number of resources you can use to locate and purchase pallets. But keep in mind that if you buy them privately, they may be rejected because they don’t meet the standards of your shipping service.

Your logistics provider will usually have a surplus of suitable, industry approved pallets and help you negotiate effective terms to get your products shipped safely.

How much does shipping a pallet of freight cost?

Because there are so many variables, that’s a hard question to answer effectively. It depends on what you’re shipping, where your shipment is coming from and it’s going to, how much it weighs, and so much more.

To get an accurate idea of the cost for your particular needs call Brimich at 1-855-752-5783 to get a quote today.

How many containers or cartons fit on a pallet?

The number of containers or cartons that can fit on a pallet depends on what the type of product you’re shipping, its overall weight, the size of the pallet, and its stacking configuration.

With a few of these details in mind, you can use this pallet loading calculator to help you see how many items of the same size and weight you’ll be able to put on a single pallet. Keep in mind the calculator only supports containers that are of the same size and dimensions. If you have multiple sized containers, you might want to consider contacting a reliable logistics company to get a quote.

What is the weight of an empty pallet?

The average wooden pallet measuring 48” x 40” will weigh somewhere between 33 and 48 lbs (or 15 and 22 kg).

Some standard pallets weigh as little as 30 lbs, and others up to 70 lbs depending on the density and weight of the  specific material they’re made from.

How much weight can you put on a pallet?

Weight loads for standard pallets can be between 3,700 and 4,600 lbs, or 1680 and 2087 kg. Other factors include pallet capacity, dimensions, type and the material it’s made of.

How high can you stack a pallet?

Generally speaking, the maximum loaded height for a standard-sized pallet shouldn’t be more than 60” or 1.5 meters. Best practices start with the heaviest containers on the bottom and the lightest on top.

Pallets should also be loaded uniformly with straight vertical edges, in other words without leaning to one side or have protrusions beyond its boundaries. This is not only important for the protection of your products, but the safety of the those who load and unload your cargo.

How many pallets fit on an LTL?

Typically, LTL (less-than-truckload) shipments will fit between 1 and 6 pallets.

How many pallets fit in a 53 foot truck?

Assuming it’s a completely filled 53’ truck, a full truckload (FTL or TL) can hold anywhere from 24 to 30 pallets.

In Summary

Knowing how to ship a pallet properly may not be rocket science, but it makes a huge difference in controlling avoidable losses caused by damages and situations.

The overall key thing to keep in mind is safety; safety for both your products and your business’ reputation, and for those who help you move your goods.

If you need help with anything related to shipping your pallets or other logistical needs, give Brimich a call today!

Whether you’re looking to brush up on your freight shipping and logistics vocabulary, or just looking for information as you get your feet wet,  this guide is for you. Here’s a few of the most common freight shipping acronyms, what they stand for, and the situations where you might find them.

Acronyms Used in Shipping Options

Before you send an RFQ (Request for Quote), you should first understand what type of carrier you’ll need. Here are some of the more common freight carrier options:

• TL – full truckload
  Often the most cost-effective method of shipping your products – provided you have enough to fill the entire truck. When you ship TL your freight goes straight to its destination via long haul. Unlike LTL shipments, TL shipments do not transfer to other trucks or stop at any terminals mid-haul.
• PTL – partial truckload
  If you do not have enough product to ship TL, PTL is the next step down. Similar to TL shipping, your products will typically stay on one truck from its pick up point to final destination – but is not accessible during the trip.
• LTL – less than truckload (or less than load)
  For many businesses small and large LTL transportation allows you to ship minimal quantities. But for this method to be effective for all parties, the load must consist of a minimum of 1-6 pallets or weigh under 4,000 pounds. When shipping LTL, your items are combined with shipments from other shippers, plus they may be transferred one or more times before they reach their final destination.
• STL – shared truckload
  The STL method of shipping is a hybrid whereby multiple shipments can be combined onto one truck moving in the same direction. This intent is to bypass the hub and spoke system thereby reducing the number of stops. This helps avoid damage caused through the extra handling of a shipper’s freight.

Typical Freight Acronyms

Once you have a freight quote form in front of you, you may find a number of unfamiliar associated acronyms. In order to communicate clearly and efficiently with your logistics partner, you’ll need to be familiar with these common terms plus a few more:

• FAK – Freight of all Kinds
  The term FAK is used to refer to a pooling of different products into one load for the purpose simplification of rating and pricing.
• BOL – Bill of Lading
  As one of the most important documents associated with moving your goods, a BOL is a detailed, legally binding contract between a shipper and a freight carrier. Every BOL includes details that define the names and addresses of the shipper and carrier, shipment description, packaging details, expected pickup date, freight class, and hazardous material designations.
• NMFC – National Motor Freight Classification
  NMFC is a series of classification codes assigned to commodities by the National Motor Freight Traffic Association (NMFTA). NMFTA created the National Motor Freight Classification tariff to help classify all commodities into 18 different freight classes determined by four factors; shipment density, stow-ability, handling, and liability.
• EDI – Electronic Data Interchange
  At the basic level, EDI is the business-to-business interconnection of computers for the rapid exchange of documents. In the freight shipping industry, this would be items like bills of lading, invoices and tracking information.
• FOB – Free on Board
  FOB is a term used to indicate when ownership and liability of goods is transferred from seller to buyer. When used with a physical location such as a shipping port, FOB specifies which party assumes responsibility for the payment of freight charges, and at what exact point title for the shipment passes from seller to the buyer.

• GVW – Gross Vehicle Weight
  Because weight is such an important factor in freight transportation, GVW is the term used to quantify the total weight of the transport vehicle and its cargo. Likewise, GVWR, or Gross Vehicle Weight Rating is often used to express the maximum operating weight of a vehicle as specified by the manufacturer.
• LG – Lift Gate
  A lift gate is a powered tailgate used to lift pallets from ground level to the same level of a truck trailer deck. Many LTL truck fleets have lift gates as do smaller shipper locations with no loading docks.
• DV – Declared Value
  Declared value refers to the monetary value of a shipment as reported by you, the shipper. Being an extremely important declaration, it serves as a disclosure used to determine shipping charges and as a tool to control carrier liability for damage and loss.

Other Terms Used in Freight Management

As the saying goes, “But wait, there’s more!”. The acronyms don’t stop there. Because documentation and performance are an important part of the evolving transportation and logistics industry, you could benefit from a little familiarity with them. Here are a few important terms worth knowing:

• POD – Proof of Delivery / Port of Discharge / Port of Destination
  Having a number of different meanings within the transportation industry, how this term is used depends on its context.
  The port of discharge or destination implies where the container is correspondingly loaded or unloaded from a vessel and picked up by the consignee.
  Proof of Delivery is the paperwork authorized by the consignee indicating the receipt of a load. In this context, a BOL can often double as a POD upon delivery and must be signed for the carrier to get paid.
• CNOR / CNEE – Consignor / Consignee
  More like contractions rather than acronyms, these are fairly straight forward: a CNOR or consigner is the entity sending a shipment, whereas a CNEE or consignee is the entity receiving a shipment.
• OS&D Report – Overage, Shortage, and Damage
  Mistakes and problems do happen therefor they must be accounted for. For instance, a CNEE can file an OS&D report if there are issues with a shipment they received. As implied, an overage occurs when the recipient gets more product than ordered, while a shortage is the opposite. Shipment items that are delivered unusable or unsellable are considered damaged.
• TONU – Truck Ordered but Not Used
  A common result of miscommunication (hence the need for this article) or happenstance, a truck arrives to pick up a shipment, but the load isn’t ready – that’s TONU. If it’s due to your error, you may find yourself having to pay a fine and compensate the carrier for misuse of their time and resources.

As you can see, it’s extremely important to be familiar with these terms and how they apply to your business. It would be wise to take a few minutes and learn them so you get accustomed to seeing and hearing them in context throughout your shipping processes.

Whether you’re choosing less-than-truckload (LTL), ocean freight, or intermodal shipping, most, if not all, service providers won’t ship your freight without a Bill Of Lading or BOL.

What is a Bill Of Lading in Shipping?

Considering how important the BOL is, what is it exactly? What does a Bill of Lading mean? Here’s a specific definition:

A bill of lading (BL or BoL) is a legal document issued by a carrier to a shipper that details the type, quantity and destination of the goods being carried. A bill of lading also serves as a shipment receipt when the carrier delivers the goods at a predetermined destination. This document must accompany the shipped products, no matter the form of transportation, and must be signed by an authorized representative from the carrier, shipper and receiver.

Moreover, the BOL contains more specific relevant information about your shipment to enable logistics providers to process and price their service accurately. These details are (but not limited to):

• Commodity description
• Freight dimensions
• Billing party information
• Shipping/purchase order numbers
• BOL number
• Pickup and delivery addresses
• Contact information
• Total weight
• Piece count
• Freight class
• NMFC code
• Additional services
• Special instructions

Do I Need a Bill of Lading?

If you want a recognized carrier to move your goods legally and responsibly – yes!

The Bill of Lading is the receipt of the transaction between you and your carrier. It’s a legally binding document that can also serve as a document of title, which allows the entity holding it to claim ownership of the freight.

Who Issues the Bill of Lading?

A bill of lading is usually issued per shipment or container by your carrier, broker, or forwarder. You just have to fill out the details in the appropriate blank form.

The specifics or type of form will depend on your requirements as the shipper. It can also be determined by the purchase order, kind of products you’re shipping, letter of credit, and many other factors.

When it comes to truckloads however, it’s actually common in full truckload (FTL) for shippers to use their own BOL. Additionally, some carriers will allow their clients to make their own BOL for LTL shipments.

How to Read a Bill of Lading

Here’s a brief list common terms associated with a BOL:

• Names and addresses of both shipper and receiver (consignee) . Both should be easily readable in the document.
• Purchase orders or reference numbers required for pickup upon delivery.
• Special instructions that may be needed to ensure the integrity of the package.
• Date of pickup that the consignee can expect the goods to arrive.
• Description of items: quantity of goods, dimensions and weight, and information about the material.
• Packaging type such as cartons, crates, pallets or drums used during shipping.
• NMFC code if required that corresponds to the freight class of the shipment.
• Dept. of Transportation hazardous material destination when required to disclose hazardous items handling measures.
• BOL number given by the issuer of the BOL.

These details when required must be notated on the BOL or you may risk not having your freight picked up, which could result in a dry run charge from the carrier.

Additionally, if your shipment is LTL, you’ll also need to include the freight class of the shipment.

What are the Different Types of BOL?

Types of BOLs are diverse to cover the vast range of products that require shipping. Depending on the contract, there are different terms used in different shipping scenarios.

For easy reference, here’s a list of common BOL types:

1. Order bill of lading

The Order BOL type states that the cargo will only be delivered to the person or party determined by the shipper – often according to the consignee. To ensure safety of delivery, the bill must be verified by the agent or middleman responsible for the delivery. Also considered as a negotiable bill of lading, it is the most used type of BOL in the world.

2. Master bill of lading

A Master BOL is issued by the shipping line, trucking company, or basically the owner/operator of the transport vessel. This is also the type of BOL your freight forwarder or broker has with the carrier containing most of the same detailed information about your cargo.

3. Straight bill of lading

Also known as a non-negotiable bill of lading, this BOL consigns the cargo to one specific person – neither the endorser nor the endorsee is prioritized when claiming ownership of the delivery. More often than not, the consignee has to make an advance payment before they can receive the goods. Plus, depending on the laws of the destination country, he or she may or may not be required to show the original bill upon receipt.

4. Open bill of lading

Also known as a negotiable bill of lading, this type defines that the cargo can be transferred from one consignee to another with the consignee’s signature. The consignee is usually a named party pre-determined by either the carrier, a bank, or the importer.

5. House bill of lading

Also known as a forwarder’s bill of lading, this type of BOL is given by the forwarder, broker, or the Non-Vessel Operating Common Carrier (NVOCC) to their clients.

6. Bearer bill of lading

This type specifies the cargo will be delivered to whoever possesses the bill of lading. The consignee may be unspecified originally or be negotiated upon delivery. It’s usually used for bulk shipments released in smaller quantities.

7. Received for shipment bill of lading

This type is given by the carrier confirming that the goods have been received, but not yet laden onto the ship or transport vessel. This is typically used as a temporary BOL when the vessel is late and will be replaced by a Shipped BOL when the cargo is finally loaded on the ship.

8. Shipped bill of lading

This type of BOL issued when the cargo is onboard the vessel and now legally binds the owner of the vessel with the carrier.

9. Ocean bill of lading

The Ocean Bill of Lading allows the cargo to be transported via ocean freight, both nationally and internationally.

10. Inland bill of lading

This BOL type allows the carrier to transport the shipment freight via land, via roadway or rail, but only within domestic boundaries.

11. Airway bill of lading

As the name implies, this type is issued by an air freight company or forwarder and is usually considered non-negotiable – unless the cargo is consigned to the order of the shipper.

12. Clean bill of lading

Denoting a certain condition of the cargo, this type states goods are loaded in good condition and cannot explicitly declare a defective condition of the packaging and/or the products inside. If the shipment ultimately turns out damaged or is missing in quantity, it is replaced by a Dirty BOL.

13. Dirty bill of lading

The Dirty BOL has a clause stating the shipowner can declare the condition of the cargo as “dirty”. Meaning the cargo is indeed broken, or incorrect quantity of goods have been specified, there’s significant damage in the packaging, etc.

14. Through bill of lading

The Through BOL serves as a legal document that allows the shipment to directly pass through domestic and international borders. It may be transferred from one distribution center to another, and be transported across multiple modes of transport. It is also required to include an Inland or Ocean BOL depending on the final destination of the shipment.

15. Combined transport bill of lading

Additionally known as a Multimodal Transport BOL, this type states that there will be at least two modes of transport involved when shipping the cargo.

16. Direct bill of lading

The Direct Bill of Lading is for shipments to be picked up and delivered by the same vessel.

17. Stale bill of lading

This type of BOL defines that when the cargo arrives at the port before the bill of lading itself, the current BOL is then considered “stale”.

18. Surrender bill of lading

The Surrender BOL is issued by an exporter to an importer and signifies the transfer of ownership once the freight is received.

Using the Correct Bill of Lading: Why It’s So Important

Every detail in a BOL so your cargo must be nailed down to ensure your shipment is delivered with the least amount of hiccups as possible.

Using the right BOL will avoid unforeseen freight charges and unnecessary time constraints – such as the shipment being delivered to the wrong address.

This means the BOL contains all the most relevant details about your shipment including the terms and conditions favorable for you.

With continuing evolution of the supply chain, customer expectations of fast deliveries right to their door are changing as well.

Thanks to successful models developed by Amazon and eBay, customers are not only comfortable, but prefer to shop online – especially in a compromised environment due to a pandemic.

Because of this shift in how customer’s view shipping, getting your products from A to B, or from the factory to their door is more critical than ever.

Of course your company is committed to excellence and customer satisfaction – that’s a given. Therefor, awareness of the most common shipping mistakes just might help you avoid those awkward moments when a problem does need to be explained.

Mistake #1: Listing the Wrong Address

It seems obvious enough to avoid, but it happens all the time, and at many different levels. It’s a stupid mistake that can cost you dearly and delay your shipment arriving on time.

If you list the wrong address, or if it’s entered incorrectly for you – thanks autofill, your delivery will end up at the wrong place. As a result, it’ll have to be tracked down and re-routed to the right address.

This costs time and resources in re-routing fees, missed deadlines and most unfortunately, unhappy customers.

Mistake #2: Improper Packaging

Sketchy packaging means damaged freight, which means unhappy customers and again, higher costs.

According to experts, the structural integrity of most any shipping container suffers significant break-down over the course of a single journey; and that’s for boxes that are correctly packed and sized.

When the package is NOT sized or sized correctly, the potential for damage rises exponentially. With the amount of time and care you put into creating your fantastic product, why would you risk all that work with inappropriate shipping boxes or using boxes with a sloppy fit?

Of course different products require varying amounts of care and protection, much of which depending on an item’s size, weight, and fragility.

Even with the right packaging, make sure that your goods are secured properly to their pallet: not filled with overhanging packages. Instead, column-stack or interlock-stack goods. Make sure they’re secured with stretch wrap and bands along with cushioning to increase shock absorption, strength, and stability.

A conversation with a preferred carrier will go a long way, and a little extra time is worth the cost of making sure your goods arrive intact and in good condition.

Mistake #3: Bill Of Lading (BOL) Inaccuracies

The key document required for every freight shipment – The Bill of Lading, one of the essential shipping terms to be familiar with, is a legally binding document giving both the carrier and the driver all the details to necessary to process and invoice the freight accurately.

The BOL includes:

• The date of the shipment
• The number of units in the shipment
• The exact weight of shipment
• The Shipper’s and Consignee’s full names and addresses
• The Freight classification for the items being shipped
• Type of packaging
• The declared value of goods
• A description of items being shipped: name and material of manufacture
• A Purchase Order or special account numbers used between businesses for tracking
• Special instructions for the carrier to ensure prompt delivery – such as closing times
• If necessary, a note regarding potentially hazardous materials

Considering the amount of specific information that must be documented, it’s not uncommon for shippers to use the wrong commodity description; enter the wrong piece count; notify party; or fail to read the terms and conditions of the bill of lading just to name a few.

Mistakes like these can be extremely costly and easily avoided by carefully filling out the information. Engaging the help of someone to double-check also goes a long way to ensuring its accuracy.

Going the extra mile may seem unnecessary, but you should remind yourself what’s at stake when things aren’t 100% accurate – your products, and you business’ reputation.

Mistake #4: Incorrect Weight or Freight Class Listing

Yes, it is part of the BOL, but it’s important enough to have its own listing because improperly listed freight class or weight can be a serious and costly mistake.

If you try to guess your shipment’s weight without the aid of a weigh station, you will inevitably receive additional fees – the same goes for improper freight class.

Because a lower class is associated with a lower price, shippers sometimes try to list their shipment in the lowest possible class. But if they’re incorrect, the reclassification fee will be much higher than the margin from one class to another.

This may not seem like a big deal to some, but if you’re shipping hundreds or thousands of freight loads a year, those additional fees can add up fast. Not to mention the damage it does to a reputation.

Mistake #5: No Freight Insurance

In order to cut costs, shippers may opt to avoid insurance. It may be cheaper in the short run, but the law of averages will come back to bite you.

The simple frequency of continuous shipping over time will inevitably lead to damage of one kind or another. It may be it an overturned truck, theft, natural disasters, an accident, or a host of other problems capable of ruining a shipment.

Human error has to be taken into consideration. Plus the likelihood of a mistake occurring increases with travel distance and package handling.

The relatively small price of insuring the goods saves you from worrying about the inevitable mishaps that are bound to happen over time, and save you from what could be financially crippling replacement costs of an entire shipment.

Mistake #6: Not Palletizing

Palletizing takes time and effort, but it’s far better than having a loose stack of packages free to shift around while on route and get damaged.

Furthermore, most LTL companies won’t allow you to ship without using a pallet. If you don’t, they’ll palletize your goods and pass the cost of doing so on to you. While this can be negotiable point, it’s far less expensive to do it yourself.

Mistake #7: Overpaying for Freight

This last “mistake” may seem obvious, but it’s one mistake made far too frequently.

Working with a trusted 3PL partner is one of the best ways to avoid the mistakes listed, and more, and keep your freight costs low at the same time.

An experienced 3PL partner audits your freight invoices to ensure your company is paying the correct amount for your shipments. If in case you are overpaying, they’ll work directly with your preferred carriers to provide accurate pricing, or correct other issues.