Limited Access - Those additional charges shippers loath are getting more complicated. The accessorial charge is no longer a catch-all for destinations carriers deem out of the ordinary.
A regular theme of the Recon Resources and Updates Blog has been LTL carriers' improved ability to understand the variables that impact their cost. This increased savvy has given LTL pricing analysts the means to hone their rates to attract the freight that fits their network best or effectively price themselves out of freight that they do not want.
LTL carriers may alternatively suggest they are getting paid more equitably for the service being provided.
Previously, shipping to a destination such as a school, military base or hotel would all fall under a standard Limited Access accessorial fee. Today, carriers can differentiate and implement a more targeted fee structure. If a carrier does not want to deliver to construction sites, you may see a $140+ fee. If they are ok with delivering to a church, maybe it will only be $25.
It is more important than ever, to get specific when rating a shipment. Simply checking the "Limited Access" box is no longer a guarantee you will get an accurate rate. Shippers must designate the type of
destination such as the following:
- Military Base
- Government Facility
- Nuclear Station
Shippers often have the the intent to ship with the lowest cost carrier within their network, but if the BOL is not noted, or the destination type was not designated specifically, they will likely be in for an unpleasant surprise. It is very possible the low cost carrier could become the most expensive carrier if the carrier chosen rates a destination excessively high compared to the alternative carriers.
If you have questions about specific Limited Access charges or other changes you are experiencing in the LTL world, let's discuss. You can always schedule a 15-30 minute conversation using the link on the right at the top of the page!
Marc Wojnowich, Promoter of Shipping Smarter | Recon Logistics