Fees, FAQs & Terms

Container Drayage Accessorial Fees

Detention
Shipments are allotted a specified number of hours free time for pick-up and unloading at origin and destination. Detention time refers to wait time once the Carrier arrives at origin or destination. Detention is normally billed per hour in 15-minute increments. Most carriers provide for one or two hours free time at origin and destination.

Pre-Pull Fee
This fee applies when, at the request of Shipper, the Carrier picks up a container from terminal without delivering straight through to the consignee, in order to accommodate a later delivery date /time to the consignee. On occasion a container is pre-pulled to avoid demurrage fees.  A flat fee will be assessed for the service, including first night of storage.

Bobtail or Drop Fee
This fee applies during a drop and hook move when an empty is not available at the consignee and the Carrier must bobtail back later to retrieve the empty. This fee also applies when at the request of the Shipper, Carrier bobtails into the consignee to terminate an empty.

Chassis Rental
When the chassis provider charges for the rental of a chassis. The rental fee is billed per day unless the Shipper has a chassis contract clause with the steamship line.

Split Chassis
Any chassis that must be picked up or returned to a terminal different from the container is billed a split chassis fee.

Lift-on/Lift-off/Private Chassis Fee
This fee applies when the railyard must place or pull a container on or off a privately-owned chassis.

Dry Run Fee
A dry run fee will apply when an empty or loaded container is not available for pick up at the terminal.   Another example is when the Carrier is not able to deliver or pick up a container due to an issue at the consignee location not caused by the Carrier.

Stop Off Fee
Any stop for partial unloading/loading and exams (exams: CET, MET, Fumigation, FDA, etc.) will be billed per stop. Any changes to the delivery location not communicated to Kinetic Supply-Chain Services prior to the pickup will be billed as an additional stop off charge. Additional stops that are not in the original route will also be billed at an additional cost.

Terminal Stop
Fee applied when a carrier cannot return a container before port or ramp closure.   

Storage Fee
Loaded or empty container storage is a flat fee per day after 24 hours, billed in one day increments by calendar day.

Demurrage Fee
A charge for a delay in the pick-up of a container after offload beyond the negotiated free time between the steamship line and beneficial cargo owner.  Kinetic Supply-Chain Services will attempt to pick up containers in a timely manner by the last free day to avoid demurrage charges. Kinetic Supply-Chain Services will not be liable for any demurrage fees due to terminal issues that prevent containers from being picked up by the last free day.

Per Diem Fee
A late fee assessed for the return of a container beyond the negotiated fee time between the steamship line and the beneficial cargo owner. Kinetic Supply-Chain Services will attempt to terminate empties within 48 hours of notification (minus Sunday). Kinetic Supply-Chain Services will not be liable for any per diem charges due to terminal issues.

Trans-Load Fee
A fee for transferring a load over to another vehicle or truck from an ocean container for delivery to a consignee or public warehouse.  This is usually done to save on transportation costs when the delivery location is a great distance from the origin delivery port.

Congestion Fee
Assessed for ports and rail heads where pick-up and return of containers is lengthy due to volume and delays.  The fee is used to compensate drivers for extended dwell time.

Overweight Permit Fees
A fee for the movement of overweight containers between port and origin or destination.  The fee is applied when the container exceeds legal weight as written per state statute.  The permit is secured by the carrier.  Shipper will not knowingly ship gross vehicle weight (GVW) in excess of applicable state statutes. Kinetic Supply-Chain Services shall not be responsible for any charges, fines, citations, or other liabilities as a result of hauling loads in violation of weight regulations.

Tri-axle/Spread Axle Chassis Fees
This fee applies when Kinetic Supply-Chain Services is required to use tri-axle or spread axle equipment to move a 20’ or 40’container in excess of a state’s legal gross weight and maximum axle weight. Axle weights must be legal according to applicable state bridge laws.

Hazardous Materials Fee
A fee to offset the cost of carrier licensing and insurance costs associated with the movement of hazardous goods.

Fuel Surcharge Fee
A percentage mark-up or surcharge applied to a shipment based on the current cost of diesel fuel in the U.S. 

Reefer Fee (temperature-controlled container)
Fee for the time and effort to secure and test a reefer genset for placement on an ocean container. 

NYC Toll Fee
Applied to all container shipments moving between New York to areas outside that state’s boundary to compensate for the cost of bridge and road tolls.  In the past, the New York terminals reimbursed carriers for the toll.  That policy was rescinded a few years ago.

Wash Out Fee
When a container is not clean or the last product leeched into the interior of a container, it must be washed out for the next load.  This is a requirement of the steamship line.                                                                                                     

Container Notification
Container notifications (loaded or empty) must be submitted to Kinetic Supply-Chain Services via email to our operations team at ops@kineticsupplychain.com. Kinetic Supply-Chain Services will attempt to pick up the container within two (2) business days from the time of notification. Container and chassis will then be terminated to the applicable port terminal consistent with the hours of operation of the port facility.

Switcher Work
Switcher work as requested by Shipper will be billed at an hourly rate.

Terminal Fees and Surcharges
This fee applies when Kinetic Supply-Chain Services is required to pick up the container from a terminal where surcharges, including but not limited to tolls and gate fees, apply.

Pierpass Fee
The Pier Pass fee is a single flat fee charged for both daytime and nighttime container moves at the Ports of Los Angeles and Long Beach.

List of Truckload and LTL Accessorial Fees

Lift-gate Fee
When a shipment is delivering to a consignee without a loading dock or forklift, a truck outfitted with lift-gate equipment may be required. A liftgate is a hydraulic platform fitted on the back of a truck that can raise or lower a shipment to and from the ground.  Carriers charge a fee for this service.

Redelivery Fee
A charge to deliver a shipment after an initial attempt.  There are several reasons a carrier may need to redeliver an order.  Some examples; a destination is closed during normal business hours; no one is available to accept the delivery; or if a shipment is refused by the consignee.

Layover Fee
A charge will apply if the truck is unable, due to no fault of the carrier, to be unloaded and/or loaded on the scheduled delivery day. A layover can mean the loss of an entire day’s earnings or more due to the delay. 

Reclassification and Reweigh Fee
This accessorial fee is tied specifically to LTL shipping. LTL base rates are determined by shipment weight and class. Class is often tied to dimensional weight per cubic foot.  If the information provided on the bill of lading is incorrect or not provided, the carrier will inspect the freight and change the class.   In many cases, they will assess a service fee along with an increase in freight charges due to a change in the class and/or weight. 

Appointment/Notification Fee
If a carrier needs to schedule an appointment with a shipper or consignee before pick-up or delivery, a carrier can charge a fee for that service.  You can usually negotiate the fee down or away entirely.

Limited Access
A fee for delivery to locations not normally considered standard business or warehouse facilities.  Examples are government offices, schools, universities, houses of worship, farms, libraries, prisons, medical facilities, camps, storage facilities, nursing homes, and places that have security checkpoints.  Recently carriers are attempting to broaden the scope of limited access delivery points to businesses and shops in downtown city and town locations.

Lumper or Driver Load/Unload Fee
Unloading a vehicle is outside the general job requirements of a carrier. If the driver must load or unload the freight, a charge is assessed.   At most large retail and grocery distribution warehouses, third-party laborers are paid to unload cargo. Distributors pass these charges on to shippers as a “lumper” fee.

Residential Fee
Delivery to a residence. 

Inside Delivery Fee
Bringing a shipment through a threshold or doorway inside a business or residence. Normally deliveries are executed via a dock or curbside.

Metro Pickup/High Density Delivery Fee
A fee applied for city deliveries to congested areas.  The fee is usually applied via zip code range.  An example is New York City.  Carriers apply a fee for Manhattan zip codes 100 through 103 or for all five boroughs via zip codes 100-113.

Fuel Surcharge
A percentage mark-up or surcharge applied to a shipment based on the current cost of diesel fuel in the U.S. 

Oversized/Overlength Fee
A fee that is applied when a pallet or piece of a shipment is very long or large. This fee is usually applied when a piece or pallet exceeds eight (8) feet.  The length and fee vary by carrier.

Sorting/Segregating Fee
If a driver is required to break down an order from the unit or pallet the freight was shipped in or on and move it to another at the direction of the consignee, a fee is assessed to perform this service. This most often occurs for deliveries into grocery/retail warehouse facilities.

Hazardous Materials Fee
The Department of Transportation (DOT) requires that Hazardous Materials (HazMat) are properly documented during transport. This includes extra paperwork, higher insurance costs and added risk. Carriers typically charge a service fee for this service.

After-hour Delivery Fee
Delivering to a facility outside of normal operating hours.  Examples would be holidays, weekends, nighttime and early morning delivery hours.

Truck Ordered Not Used (TONU)
Shipments can be delayed or canceled after tender. Carrier contracts normally contain a clause allowing for a TONU fee. There is only a charge if the truck is canceled post-dispatch.

Diversion Miles
If upon arrival at a shipper or receiver, the carrier is told to drive to a different location, then divergent miles may be charged. There will typically be a ceiling mileage of which the carrier is willing to drive, but if surpassed they need to accommodate for fuel and lost time.

Additional Stop Fees
A charge for two or more destinations on a truckload shipment.  Usually the fee is applied to each additional stop beyond the initial delivery point.

Storage
If a carrier must store or hold a shipment, a storage fee may be assessed for this service. 

Detention
If a carrier is delayed for any reason at an origin or destination delivery point, a carrier my apply a detention fee.   Carrier contracts typically allow for specific free time with specific detention costs beyond that allowable time.  A few carriers choose to avoid shipments to consignees with reputations for pick-up and delivery delays.

Common Terms

Bill of Lading
The bill of lading is the contract of carriage.  It is required to move a freight shipment. The bill of lading is a receipt of freight services, a contract between a freight carrier and shipper and a document of title. The bill of lading is a legally binding document.  It is used to process and move a shipment and to correctly invoice freight charges.

Consignor
Person or firm (normally seller) who delivers a consignment to a carrier for transport to a consignee (normally buyer) named in the transportation documents. Ownership (title) of the goods remains with the consignor until the consignee pays for them in full.

Consignee
In a contract of carriage, the consignee is the entity that is financially responsible (the buyer) for the receipt of a shipment. If a sender moves a shipment to a receiver via a delivery service or common carrier, the sender is the sender, the recipient is the consignee, and the deliverer is the carrier.

National Motor Freight Classification Codes (NMFC)
NMFC codes were established to standardize classes based on density, stow-ability, ease of handling and liability.  The NMFC developed eighteen (18) different classes from class 50 through class 500.  The higher the class, the greater the cost per hundredweight to move a shipment.  Over the past few years, many classes have been changed to a system based on density in pounds per cubic foot (PCF).  The NMFC constantly updates and modifies classifications to commodities.  It is very important to monitor changed made to the system to avoid carrier penalties and fees.

Free Astray
A shipment that is misrouted or unloaded at a wrong destination is commonly moved to the proper consignee or receiver free astray or without extra freight charges.  Damaged shipments are at times moved free astray back to the consignor or shipper.

Common Terms

Bill of Lading
The bill of lading is the contract of carriage.  It is required to move a freight shipment. The bill of lading is a receipt of freight services, a contract between a freight carrier and shipper and a document of title. The bill of lading is a legally binding document.  It is used to process and move a shipment and to correctly invoice freight charges.

Consignor
Person or firm (normally seller) who delivers a consignment to a carrier for transport to a consignee (normally buyer) named in the transportation documents. Ownership (title) of the goods remains with the consignor until the consignee pays for them in full.

Consignee
In a contract of carriage, the consignee is the entity that is financially responsible (the buyer) for the receipt of a shipment. If a sender moves a shipment to a receiver via a delivery service or common carrier, the sender is the sender, the recipient is the consignee, and the deliverer is the carrier.

National Motor Freight Classification Codes (NMFC)
NMFC codes were established to standardize classes based on density, stow-ability, ease of handling and liability.  The NMFC developed eighteen (18) different classes from class 50 through class 500.  The higher the class, the greater the cost per hundredweight to move a shipment.  Over the past few years, many classes have been changed to a system based on density in pounds per cubic foot (PCF).  The NMFC constantly updates and modifies classifications to commodities.  It is very important to monitor change made to the system to avoid carrier penalties and fees.

Free Astray
A shipment that is misrouted or unloaded at a wrong destination is commonly moved to the proper consignee or receiver free astray or without extra freight charges.  Damaged shipments are at times moved free astray back to the consignor or shipper.