The LTL world is always evolving, and its pricing along with it. As we enter the busiest season of the year for supply chain professionals, carriers are finding themselves pushed to the limit due to increased freight volumes and tight capacity. Because of this capacity crunch, carriers have implemented updated fees on LTL shipments with large dimensions.
Which carrier fees are changing?
Updated overlength fees are being assessed on individual items that are more than eight (8) feet in length. Carriers have charged these fees in the past, but they generally were not applied to items under 12 feet. This reduction reflects the tighter capacity and increased demand LTL carriers have been experiencing over the years.
When will the new fees begin?
Two carriers have already made announcements regarding these fees, and we expect more carriers to follow as we get closer to the new year.
The carriers who have made these announcements are:
XPO LTL: effective as of 11/06/2017
FedEx Freight: effective as of 01/02/2018
More about overlength fees
If you are new to less-than-truckload (LTL) shipping, know that overlength fees are considered a standard accessorial charge in the LTL industry. These accessorial fees are a separate set of fees that apply to standard shipping rates for additional services, including:
- Delivery appointments
- Residential deliveries
- Re-weighs
- Liftgate
- Extreme length
Each carrier establishes their own set of accessorial fees, and it is common to see a fee for shipments in excess of 12 feet or greater in length. LTL carriers are now lessening that to eight (8) feet in length.
What can you do to prepare for this change
For companies who frequently ship larger LTL shipments, this will most likely result in an unavoidable increase in carrier rates. The best way to mitigate these costs is to direct your freight through a facility that specializes in partial-load consolidation (PTL). These types of facilities only charge you for the space that you use. Our facility in Minneapolis offers unique LTL and PTL consolidation solutions designed for Minnesota-based shippers. Learn more by contacting us or visiting our LTL services page.
Joel Rice