LTL carriers expect freight to move through their terminals rather quickly. Because of this, freight that is delayed and cannot be delivered can accrue storage fees. When a shipment remains at an LTL facility for an extended time, it takes up valuable space, making operations less efficient. These fees can get even higher when they are storage-with-power fees. This happens when the freight requires electrical power. In this article, we will cover these charges, how they affect your bottom line, and what you can do.

When Do LTL Storage Fees Begin?

Most LTL carriers begin to charge storage fees around the 24-48 business hour mark. This policy varies between carriers, so it is important to familiarize yourself.

How Much Do Storage Fees Cost?

Most LTL carriers will charge between $25-$50 per day per pallet. Also, most carriers will charge a minimum, and they may tack on additional fees depending on their policies. These rates vary from carrier to carrier and are available in each LTL carrier’s rules tarrif.

Common Reasons That LTL Freight is Delayed at Origin

Paperwork

LTL freight can be held up for extended periods when paperwork is incomplete or missing. This is especially true for international and hazmat shipments that require additional documentation beyond a standard BOL and packing slip.

Consignee Information

Having the correct consignee information at the time of pick up is vital to avoiding delays. If the consignee’s address is incorrect, the LTL carrier will not know where to bring it.

Refrigeration

Freight that needs temperature control requires specialized equipment. If this is not properly communicated to the LTL carrier, it may sit in storage until the issue is resolved.

Common Reasons That LTL Freight is Delayed at Delivery

Receiver is unable to accept

Sometimes, receivers will reject LTL freight. This can happen for many reasons. Some of the most common are incorrect receiving hours listed or failure to state that an appointment is required. These will also result in a redelivery fee.

Delivery appointments are delayed or extended

If a receiver repeatedly resets delivery appointments, or sets them too far in advance, the LTL carrier will charge for storage fees.

Payment and billing issues

Incorrect billing information will cause LTL freight to get delayed and potentially accrue storage charges. This is because LTL carriers will not deliver freight until they know for certain who is paying for it.

How You Can Avoid Storage Fees

These simple practices can save you hundreds to thousands of dollars each year by avoiding LTL storage charges.

• Ensure all shipping documents, including BOL, packing slips, customs, and hazmat, are accurate and completed before pick up.
• Verify consignee contact information, address, hours, and delivery requirements before pick up.
• Schedule appointments and communicate changes promptly.
• Confirm the receiver is able to accept the shipment when it arrives.
• For temperature controlled freight, minimize transit delays and maintain clear communication with all parties involved.

Conclusion

By proactively managing shipment details and maintaining open communication, shippers and receivers can help prevent delays that lead to storage and storage-with-power charges, ultimately reducing transportation costs and ensuring a smoother delivery experience.