The 5 Biggest Hidden Shipping Inefficiencies + How to Fix Them Download

Sifted logo

How Much Do You Know About Surcharges?

by | Jun 15, 2020

3 min read

 

We haven’t found a shipper yet who likes surcharges, but they’re a frustrating fact of shipping life, unfortunately. The best you can do is make yourself aware of the surcharges that are most likely to affect your business and seek out ways to lower them. 

Surcharges are carriers’ way of passing their costs on to you. When they have to do extra work to get your packages where they need to go, you pay the price — literally. 

With one of the largest collections of parcel data in the U.S., we know a thing or two about surcharges and which ones affect shippers the most. Surcharges can get overwhelming in a hurry, so we put together some quick info to help sort it out.

Check out our video above or read on!

 

5 budget-busting surcharges to watch out for

  1. Address Correction: This surcharge occurs any time the carrier has to fix the address on a package for you. Even slight differences from the actual address can incur the charge. Carriers charge $17 to $119 to correct the address for you, depending on the shipment type.
  2. Residential Delivery: This surcharge kicks in when a delivery is going to a location that carriers have designated as residential. Depending on the carrier, you will pay anywhere from $4 to $4.70 for ground and $140 to $150 for freight.
  3. Delivery Area and Extended Area: The Delivery Area Surcharge (DAS) and Extended Area Surcharge (EAS) both occur when your shipment is being delivered to a remote area, as defined by a set of more than 25,000 ZIP codes. For DAS, carriers add $2.95 to $4.40 to your shipment. For EAS, you’ll pay $3.45 to $5.40 or even $27 extra for a shipment on a pallet.
  4. Additional Handling: This surcharge is for packages that need extra attention from the carrier, based either on their weight or dimensions. Carriers charge $15 for packages that require extra handling based on dimensions and $24 when based on weight. They will charge you based on the larger of the two.
  5. Oversize/Large Package: This surcharge, called Oversize or Large Package depending on the carrier, is levied on shipments that exceed certain size limits. For both carriers, that means packages larger than 96 inches in length or 130 inches in length and girth (two times the width plus two times the height of the package).

 

How surcharges affect your shipping costs

Surcharges can account for 30 percent of your shipping invoices, making packages cost far more than you might have planned.

For instance, thanks to a lower threshold in 2020 for weight-based additional handling surcharges, a 51-pound ground package shipped this year costs nearly $26 more than last year. If you plan your shipping spend only around the General Rate Increase (4.9% for 2020), you might find your budget out of whack because of the increases in individual surcharges. It’s crucial to stay up to date on all surcharges — especially the ones most likely to affect your shipping profile — so that you aren’t shocked when your invoices roll in.

 

How you can stay ahead of surcharges

Beating surcharges starts with knowing which ones are affecting your business the most.

  • Dig deep into your own data. Understanding your own shipping profile as well as your carrier does is no easy task, but it’s important. It puts you in a better position to optimize your carrier contract and to make decisions about your shipping operations.
  • Revamp your operations. Once you’ve got a handle on your data, you can review your product mix and placement, your routing guidelines and distribution network, and your packaging to get everything ship-shape.
  • Let technology do the work. Analyzing your own data and looking for surcharges and ways to improve is a full-time job in itself — unless you have help. Look for solutions that sort and analyze your data and then deliver you actionable reports you can use to make changes that matter.

 

Get the full scoop on surcharges

For more on these shipping costs and actionable tips on getting them under control, check out our eBook, 5 Budget-Busting Surcharges & How to Lower Them. It’s packed with the info you need to know to avoid surcharge surprises.

Topics: Additional Handling Surcharge, Large Package Surcharge, Surcharges
Topics

Check out related resources at Sifted.

The 5 Biggest Hidden Shipping Inefficiencies (and How to Fix Them)

The 5 Biggest Hidden Shipping Inefficiencies (and How to Fix Them)

Want the eBook version of The 5 Biggest Hidden Shipping Inefficiencies (and How to Fix Them)?Hidden shipping ...
Read More
SiftedAI Wins iF Design Award for User Experience

SiftedAI Wins iF Design Award for User Experience

We’re excited to share that SiftedAI has been recognized with an iF Design Award for our platform’s User ...
Read More
How SiftedAI Reporting Studio Can Improve Your Shipping Reporting

How SiftedAI Reporting Studio Can Improve Your Shipping Reporting

The parcel world is only getting more complex. Monitoring and optimizing your spend and performance across ...
Read More
How to Lower Your Last Mile Delivery Costs in 2025

How to Lower Your Last Mile Delivery Costs in 2025

As expectations for faster, more efficient shipping increase, the last mile is a crucial, but costly, part of the ...
Read More
Types of Shipping Surcharges

Types of Shipping Surcharges

A shipping surcharge (also called accessorial fees or accessorials) is an additional fee applied to the base shipment costs. These surcharges commonly appear as “service charges” or “handling fees”.
Read More
Why Should Shippers Seek Alternative Delivery Methods

Why Should Shippers Seek Alternative Delivery Methods

As the world of parcel shipping continues to shift and evolve, alternative delivery is becoming increasingly ...
Read More
Meet Sifted at Manifest 2025

Meet Sifted at Manifest 2025

Manifest 2025 is the premier showcase of cutting-edge logistics tech, happening February 10th-12th at the Venetian ...
Read More
The Road Ahead: 2025 Parcel Shipping Trends and Tips

The Road Ahead: 2025 Parcel Shipping Trends and Tips

As we welcome in the new year, the parcel shipping industry is undergoing waves of changes - many of which started ...
Read More
Sifted Launches SiftedAI

Sifted Launches SiftedAI

KANSAS CITY, Missouri - Sifted has launched its third-generation Logistics Intelligence platform, ...
Read More
What Is a Fuel Surcharge and How Is It Calculated

What Is a Fuel Surcharge and How Is It Calculated

Oil prices increased by 12.9% in the first quarter of 2024. The IEA Oil Market Report (OMR) is one of the world's ...
Read More
2024 Holiday Shipping Deadlines

2024 Holiday Shipping Deadlines

What’s worse than coal in your stocking?   A package that’s late!   The major carriers have released cutoff dates ...
Read More
How to Prevent and Minimize FedEx and UPS Address Correction Costs: Pro Tips & FAQs

How to Prevent and Minimize FedEx and UPS Address Correction Costs: Pro Tips & FAQs

Let’s start with defining what an address correction is. Address corrections occur when carriers thoroughly check ...
Read More
No results found.

How Sifted Works

Connect to
your account

Sync
your data

Power your
dashboards

Get Your Logistics
Intelligence Demo

Strategic ways to prevent loss down the line

Services you could be utilizing right now for savings

Ways to cut material costs without cutting quality

Profile Monitoring
Get always-on monitoring across your cost-sensitive KPIs

Scenario Modeling
Test strategic investment decisions out in a virtual sandbox

Carrier Management
Gain transparency into carrier performance, pricing, and billing

Accounting Automation
Automate the manual and error prone processes

Reporting & Analytics
Centralize insights, visualize trends, and create custom reports

Blog
Discover news, tips, and industry best practices

DIM Weight Calculator
See how DIM is impacting you

Podcast
Hear from industry experts on LeaderShipping

Case Studies
Learn how other brands use
Logistics Intelligence

Carbon Calculator
Calculate your CO2 Emissions

Guides
Download free reports and
expert how-tos

Demo
Get a personalized tour of our software

About Sifted
Get to know Logistics Intelligence

Unboxed Newsletter
Subscribe for parcel news, predictions & tips

Logistics Intelligence
For parcel shippers

Let's get you to the right place!

SIFTEDAI
New & Improved Logistics Intelligence Platform

AMAZON
Redirect to Valence Intelligence Login

Not sure if you have an account? Email [email protected].