Fees, FAQs, & Terms
- LTL Freight / LCL Freight
- Truckload / Inter-modal
- Final Mile Delivery
- Container Drayage / Trans-loading
- Product Roll Out Specialists
- Expedited / Air Freight Services
- LTL / TL Bid Management
- Trade Show & Exhibition Delivery Services
- Airport & CFS Pick-up Specialists
- Temperature Control Services
- Alaska / Hawaii / Puerto Rico
- Supply-Chain Consulting Services
- Spot Quotes
- Consolidation / Distribution / Assembly
- International Mail & Parcel
- Dedicated Delivery
- Freight Bill Auditing
- Freight Payment
- Reverse Logistics
- Claims Management
Kinetic Supply-Chain Services also manages containers from the following ports:
- Newark/Elizabeth NJ
- Staten Island NY
- Baltimore MD
- Long Beach CA
- Los Angeles CA
- Oakland CA
- Chicago, IL
- Houston TX
- Pittsburgh PA
- Charleston SC
- Norfolk VA
- Miami FL
- Minneapolis MN
- Cleveland OH
Our Director of Operations, John Amalfa, managed a container drayage company for twenty-five years before joining our staff. He thoroughly understands the port systems with their nuances, insuring you get the service required to manage your supply-chain more effectively.
KSCS believes that an excellent game plan begins with extensive research. To develop that plan, we would need:
- Specific shipment data with costs.
- Access to key personnel for insight into their needs, special requirements and areas for improvement.
- Site visit for process analysis.
- Corporate time-line and list of expectations
Fees, FAQs & Terms
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.
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.
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.
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.
Fee applied when a carrier cannot return a container before port or ramp closure.
Loaded or empty container storage is a flat fee per day after 24 hours, billed in one day increments by calendar day.
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.
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.
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 of 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 notifications (loaded or empty) must be submitted to Kinetic Supply-Chain Services via email to our operations team at firstname.lastname@example.org. 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 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.
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
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.
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.
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.
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.
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.
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.
A percentage of mark-up or surcharge applied to a shipment based on the current cost of diesel fuel in the U.S.
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.
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.
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.
If a carrier must store or hold a shipment, a storage fee may be assessed for this service.
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.
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.
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.
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.
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.
How to benchmark freight brokers
How to Benchmark Supply-Chain Costs: Transportation Costs Aﬀect Your Bottom Line
Ask people in your industry who they use and why.
This is one area that competitors are usually more than willing to discuss. Most new and small companies go through a painful learning curve while trying to successfully manage their supply-chains. Ask your competition what their percentage of supply-chain costs are versus sales. That is an excellent way to determine what you should expect to pay.
Investigate web-based transportation management systems (TMS).
Don’t rely on one carrier to handle all of your supply-chain needs.
Be open to new ideas.
Save and develop your shipment database from day one.
Build a database of your shipments. You can do this by requesting a monthly service report in excel from your carrier(s) or third party. Just about every major carrier requires speciﬁc shipment data from you before they oﬀer pricing.
Know your carrier’s limitations of liability in regard to loss and damage.
All carriers move freight at reduced levels of liability, especially if the shipment moves on a spot quote. Most coverage on spot quotes is limited to $1 per pound. If your shipment is worth more than the coverage, the carrier will only pay up to the limit of liability speciﬁed in the quote or in their rules tariﬀ.
If you will be shipping LTL, know your freight class.
Ask a carrier or third-party logistics provider to provide you with the National Motor Freight Classiﬁcation (NMFC) number for your product. Most freight is now classiﬁed based on density.
Talk to an industry professional.
Many companies have little or no supply-chain experience. Often they give the task of managing transportation to the person in charge of shipping. That person usually makes many mistakes on the way to becoming competent. Why not shorten that learning curve by talking to someone who has worked in the industry for many years? Why do you think most established organizations have hired professionals who have advanced degrees in supply-chain and logistics?
Every dollar saved in supply-chain costs goes directly to your bottom line.
Freight costs can eat up a signiﬁcant percentage of your proﬁt dollar, both in pure and administrative costs. Sending out broadcast emails for quotes can initially be eﬀective in helping to benchmark truckload and large volume shipment costs, but not using that information to build a database to draw from will actually add costs in the long run. It is better to develop a database and use the technology available to save money on both the administrative and actual costs of transportation.
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