Transportation: Congestion surcharges spread to more cities
Ray Bohman -- Logistics Management, 3/1/2009
When shipping via LTL carriers, we're all familiar with paying fuel surcharges in addition to the normal freight charges. And the same is true with extra charges for shipments to private residences, apartments, schools, and other types of locations.
But today, one type of additional charge that's spreading rapidly is the so-called "congestion surcharge." More and more LTL carriers are adding this charge to shipments moving into and out of larger cities and surrounding areas that have been flagged as glowing congestion concerns.
Where can you find out which cities are subject to congestion surcharges as well as the amount you might have to pay? You'll find this information in individual LTL carrier rules tariffs. Just to give you an idea of how many areas of the country are subject to such additional charges, we picked, at random, Con-way Freight's rule tariff CNWY 199-S2.
Item 235 is titled "High Cost Delivery Surcharge." It provides, for points named or ZIP codes shown, an additional charge of $16.50 per shipment, or $3.75 per 100 pounds, whichever is greater, subject to a maximum additional charge of $68.50 per shipment.
Mind you, this section takes up five pages in this rule tariff, so we are only showing the areas covered, but not individual cities or towns listed. Here are the areas to which these added charges apply.
Section 1:
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All of British Columbia
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Chicago Loop area
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Downtown Atlanta
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Greater Metro Boston
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Maryland Shore
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New Jersey Shore
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Louisiana
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Points on the San Francisco Peninsula
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Greater Downtown Los Angeles, Calif. and Hollywood, Calif. area
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South Carolina island communities
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Upstate New York
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Washington Island, Wisc.
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Greater Metro Washington, D.C.
Section 2:
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Downtown Philadelphia
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Greater New York and adjacent New Jersey area
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Greater Seattle/Tacoma, Wash. area
Some of these covered areas may be subject to only seasonal congestion, or have far more freight coming in than going out, resulting in a severe imbalance.
The key thing for shippers to remember is to check your LTL carrier's rules tariffs and find out which points are covered and what additional charges apply. Just remember, when seeking rate quotes online, those extra charges might not show up.
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