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Check carriers' tariffs for extra P&D charges

By Ray Bohman -- Logistics Management, 8/1/2003

Standard less-than-truckload (LTL) rates include both a pickup at and a delivery to locations such as businesses, warehouses, and other commercial locations. But a look through just about any LTL motor carrier's rules tariff will reveal that those carriers assess additional charges for making pickups or deliveries at certain types of businesses or named sites.

Most LTL carriers publish a rule, usually under Item 753 and titled "Pickup or Delivery Service at Private Residences and Other Such Locations" (or words to that effect), which assess an extra charge extra for making pickups or deliveries at "private residences." Such rules usually define "private residences" as including homes, apartments, camps (other than military), churches, country clubs, farms, schools, and similar locations that are not considered to be commercial businesses.

These rules also often provide that the additional charges apply to the entire premises, except for any portion where commercial business activity that involves the sale of services, products, or merchandise to the public takes place during normal business hours.

Shippers are required to indicate on the bill of lading when a residential or non-commercial delivery is required. They also must list the name, telephone number, and full address of the party to be contacted to arrange the delivery. These rules typically state that the carrier will provide the consignee with an arrival notice and will arrange a mutually agreeable delivery time prior to its initial attempt to deliver.

We've seen some carriers assess higher minimum charges—higher than the standard minimum by as much as $35—for deliveries to some points in New York City (ZIP prefixes 100–105); the District of Columbia (ZIP prefixes 200 and 202–205); and surrounding areas in Maryland (ZIP prefixes 206–209) and Virginia (ZIP prefixes 201 and 220–223).

In addition to imposing fees for serving private residences, LTL carriers may charge extra for service to other types of sites. To give you some idea of other locations where you could get hit with added charges, I've listed two examples of the sites specified in one major LTL carrier's rules tariff where additional fees apply. They are:

Pickup and Delivery Service at Exposition Centers. This particular carrier not only assesses a minimum linehaul charge based on Class 125 rates with a 55-percent discount, but it also charges $75 to $150 per shipment or per vehicle if more than one vehicle is required, depending on the exposition center involved.

Pickup or Delivery at Self-Storage Warehouses. These are defined as warehouses or storage units to which access is controlled by the owner of the goods and which are not storage or distribution warehouses with loading docks and personnel available during normal business hours. Extra charges of $3.50 per hundredweight apply, with a minimum of $35.

It's apparent from these examples that it's worthwhile to check your carriers' rules tariffs to become familiar with each one's additional charges for serving non-commercial and other specified sites.


Author Information
Ray Bohman, a well-known consultant and author, is editor of several newsletters on transportation and is a consultant to national trade associations. He is president of The Bohman Group, consultants and publishers in the freight-transportation field. His offices are located at 27 Bay Lane, Chatham, MA 02633. Phone: (508) 945-2272.

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