How to Avoid Unexpected Freight Charges.

Sending freight from one location to another should be a simple task, and it is, when you consider the basics. However, there are three steps to ensure the price quoted at the time of booking does not increase. As we will see below, it all starts with choosing the right size box, carton, container, accurately measuring and weighing the package(s).

3 steps to prepare your packages for shipping.

1. Choose an appropriate container to hold the goods safely and securely.
   Be aware of volumetric conversion factoring. Read more about how the size of the box, carton etc can increase the overall cost of freight.
2. Declare the dimensions of the package, box carton etc.
3. Weigh the package when fully sealed, ready for transportation.

Getting a freight quote.

Being confident you’re getting the best freight quote possible means organising yourself and making sure you’re clear on the dimensions and weights of every item to be shipped. Once the correct dimensions (commonly referred to as ‘dims’) and weight has been established, it is now time to search the One World Courier platform for a carrier who can pick up and deliver.

The technology driving our platform makes it easy to view a selection of carriers who can pickup and deliver your freight. Freight charges and any additional fees are instantly calculated, using a smart algorithm. One point to note is, there can be additional charges  applied to the final invoice because of a number of factors, which may be out of your control.

Stepping through the booking process.

Step 1. Package dimensions, weight and contents.

When using a freight management platform to make a booking, for the most part booking the freight and courier service who will pick up and deliver, is pretty straightforward.

Select the pickup and delivery country

1. Add the suburb or postcode for pickup and delivery. The system will present a range of postcodes for you to select.
2. Select the pickup and delivery address type. This is an important step because additional carrier charges will be added to the price for pick up and delivery to a residential address. A residential address is any address which is not zoned as commercial. These charges are created by the carrier and not One World Courier.
3. Declaring Dangerous Goods (DG). (Batteries, perfume, corrosive materials etc)
4. Select the Warranty and Insurance cover required (complimentary warranty of $250 with every shipment)
5. Select the weight identifier (defaults to KG)
6. Add the package details (type, quantity, dimensions (length, width, height), weight)
   Selecting the type of package will filter out certain carriers who do not have capacity to handle the freight – think pallets.
7. Finally, declare the goods as fragile, liquid or unusual-shaped (this can add to the cost)

Step 2. Choosing the best freight service.

1. Choose from the freight service which meets your budget and delivery time frame
   Note: Carrier charges for heavy, oversized, special equipment needed at pickup and delivery address (forklift, tailgate, crane truck, HIAB) are calculated based on the ‘dims’ and weight you entered in the previous step.
2. Add the pickup and delivery address details

The One World Courier Freight Platform was built to include extra charges which are part of every carrier’s service offering. We did this to make it as transparent as possible our for customers to get an accurate freight quote from door to door. The last thing anyone wants is to receive unexpected charges on their invoice – no one wants that.

Step 3. Additional fees, surcharges and levy’s.

In addition to the base cost, there are other surcharges and fees to consider.

• Fuel surcharge/levy (to compensate for the rising price of fuel)
• Peak Season surcharge (can also be used as a surcharge for Christmas holidays, Coronavirus, flooding and natural disasters)

Only when Steps 1 to 3 have been completed, can the total price for shipping the goods be truly calculated. This is now the price by which an agreement is made.

The shipper has agreed to accept the carrier cost of picking up and delivering the goods. This is based on the shipper providing true and accurate information about the item(s) to be shipped. Based on this information received by the carrier, an agreement is made to pick up and deliver the goods and a price is locked in.

What can cause the final freight price to change?

As we said earlier, from the very beginning, it is the responsibility of the sender to provide accurate information on the dimensions, weight and contents of the shipment. This sets the base cost and therefore the expected invoice total.

Given the nature of freight and transportation, the journey from pickup to delivery destination is often long and involves multiple touch points along the way. A typical parcel from Brisbane to Sydney could involve 4-6 touch points. Beginning with a courier pickup in a small van and driven to a freight hub. From then the parcel could be transported to a main distribution hub where it is sorted and loaded on to a prime mover. The next leg is to a Sydney distribution hub where it is unloaded and sorted into delivery zones. Depending on the final delivery address, the package could travel by truck to a regional freight hub or warehouse where it is picked up by a third-party or ‘last mile’ courier who will deliver the package to its final destination.

You can clearly see there is ample opportunity for the original, perfectly shaped box to be subjected to being squashed or misshapen as it journeys to its destination. Taking into account, the time the package leaves its pickup address, the barcode on shipping labels is scanned and as it enters the main distribution hub, can be scanned by laser devices which calculate the ‘dims’ and weight of the package.

Package scanning is used by the larger freight service providers who have invested millions of dollars in scanning technology systems. Lasers have revolutionised the transport industry, allowing small changes in ‘dims’ and weight to be logged against the shipment.

Freight Management Systems connect every part of the shipment process, from freight quotes to job booking and the agreed price. It’s critical for shippers to accurately measure and weight every piece of freight before it is picked up. In some cases it is also recommended to take a few photos of the freight before it leaves its pickup location. In the event damage occurs and the contents are broken, supporting an insurance claim with photos is a good strategy.

Additional courier charges at pickup stage.

• Heavyweight residential pickup, requiring a forklift or crane truck.
• Hand loading/unloading charge or demurrage.
• Residential pickup charge (may be weight break dependent)
• Over length fee (the longest side of the package exceeds the limits set by the carrier).
• Resolving wrong address and correcting delivery details.
• Re-delivery or attempted re-delivery.
• After hours delivery.
• Wharf terminal access fees.
• Waiting time (shipment not ready to be transported).
• Re-pickup fee, when package is not prepared or available.
• Oversize pallet handling surcharge.
• Non-stackable pallet. Pallet is odd-shaped and does not have a flat top.
  Pallets which are non-stackable can also take up more space on a trailer, therefore extra charges may be applied to your invoice.
• Pallet return fee.
• Public holiday pickup.
• Return to storage facility, warehouse or depot.
• Manual consignment note.
• Non-compliant paperwork supplied when booking is made. Incorrect Lithium Ion or Lithium Metal battery type etc.

Additional courier charges at delivery stage.

• When items are classed as fragile, or containing liquids, it’s common to not pass these items through laser scanning devices and the labyrinth of conveyor belt systems. If the box or carton contains liquids, it may come into contact with other packages which could cause breakages and fluid can escape. In these cases a manual handling fee may be incurred because of the time taken to manually remove the item, hand scan it and move it to the next stage of the delivery process.
• Hand unloading charge or demurrage.
• Oversize freight.
• Package shape and dimensions alter during transit, thereby exceeding original dimensions and/or weight.
• Large package surcharge where the item is difficult to carry and handle safely.
• Residential delivery charge. Weight break dependent or re-delivery fee.
• Two person residential delivery for oversized or irregular shaped packages.
• Resolving wrong address and correcting delivery details.
• Out of delivery/regional delivery, remote area fee or outer area fee, island deliveries including barge or ferry service charges.
• Pick-up area. Includes regional/remote pickup and delivery.
• Re-delivery or attempted re-delivery fee.
• Oversize pallet handling surcharge.
• Non-stackable pallet.
• Tail lift or crane truck required.
• Time slot delivery fee (critical delivery times).
• Waiting time.
• Wharf terminal access fees.
• Peak season surcharge.
• Temporary surcharge (such as emergency due to flooding or weather conditions).
• Short Term Depot/Holding/Warehousing storage and handling fee.
• After hours delivery.
• Public holiday delivery.
• Return to storage facility, warehouse or depot.
• Return to storage/warehouse facility.
• Road toll surcharge.
• Manual consignment note.
• Non-compliant paperwork supplied when booking is made. Incorrect Lithium Ion or Lithium Metal battery type etc.

International charges.

• Advancement of funds to expedite customs clearance process including disburses government charges, duties, quarantine and inspection fees and taxes on a customers behalf in order to expedite customs clearance.
• Elevated risk charge, when shipping to or importing from a country, is at risk due to continuous state of war, civil unrest, or continuous threats from terrorism.
• Restricted destination when shipping goods to or importing from a destination country that is subject to specific trade restrictions imposed by the UN Security Council.

Carrier-specific charges to take note of.

As One World Courier is the developer and provider of a Freight Management System, we do not see nor touch the freight passing through our platform. Our system facilitates the booking process by connecting shippers with freight carriers and courier services who provide shipping services to 200+ Countries and Territories, as well as providing freight services in Austraia. The intelligent freight software we have built was developed as a means to facilitate fast and affordable freight bookings to 1000’s of businesses.

As such, One World Couriers continually adding new features and updating our core algorithms to accommodate the frequent changes withing the industry. These changes are for the most part centred around the complex nature of package sizes, weights and delivery locations. Since Covid, the global freight industry has transformed itself into a super-complicated matrix of charges based on all manner of criteria. Unfortunately, for the customer, this can result in higher freight charges. One World Courier, as a ‘connector’ of shippers and freight carriers our focus has been to continually build into our platform the means to identify risks of additional charges being added by a carrier or courier service when the shipper has no awareness of the ‘additional’ and often ‘hidden’ charges which can increase the final invoice price after the goods have been delivered.

To our knowledge, a customer would never be made aware of additional charges being added until the goods have been delivered and an invoice has been raised. This in turn does create additional frustration for One World Customers and our own internal customer service and accounts teams. The biggest challenge is to explain additional carrier charges to our own customers when One World Courier has no part in how these charges were conjured up. Of course, every freight carrier has their own terms and conditions where such items as additional charges are itemised, although these documents are rarely read.

Therefore it is an often difficult task to mitigate the risk of additional charges being incurred, although as a developer of a freight technology platform, we periodically review and will add new algorithms to alert our customers to risk of additional charges being added.

An example of an additional carrier surcharge called a Large Package Surcharge.

This surcharge (additional fee) is incurred when a shipment measurements exceed  certain dimensions (length x width x height) as well as weight.

If the shipment exceeds these measurements then the surcharge is automatically added to your invoice. This can often lead to speculation that additional fees are being charged without prior warning, however this isn’t a One World Courier policy and it’s not One World Courier who imposes these charges, but rather the freight carrier/courier that is responsible for delivering the shipment.

We are committed to providing our customers with an effortless and cost-efficient experience, so we take every step to inform our customers if a potential charge could be added on their invoice. To reduce or avoid these charges altogether, we suggest that you measure and weigh your shipments in advance and even record those measurements and save for later. Additionally, it is good practice to take a photo or two of the shipment before it is picked up. Should there be a case for a damage claim in future, the condition of the package prior to pickup can not be disputed.

Large Package Surcharge.

An additional charge applies for packages that are considered a “Large Package” when its length plus girth [(2 X width) + (2 X height)] combined exceeds 300 centimetres (3 metres), but does not exceed the maximum carrier size of 400 centimetres.
Here is an easy-to-understand explanation of what that means.

Example 1: (No Large Package Surcharge) 
A package has dimensions of 50 cm x 50 cm x 50 cm (length x width x height).
The length plus girth of the package is calculated as follows:
Length plus girth = 50 cm + (2 x 50 cm) + (2 x 50 cm) = 250 cm
Since the length plus girth of the package is less than 300 cm, it is not considered a “Large Package”, therefore no additional charges would be incurred.

Example 2: (Large Package Surcharge added)
A package has dimensions of 100 cm x 50 cm x 50 cm (length x width x height).
Length plus girth = 100 cm + (2 x 50 cm) + (2 x 50 cm) = 300 cm
Since the length plus girth of the package is equal to 300 cm, it is considered a “Large Package”, and in Australia would incur an Large Package Surcharge of around $77.00. Depending on which carrier is chosen, these surcharges may vary.

Example 3: (Large Package Surcharge added)
A package has dimensions of 120 cm x 50 cm x 50 cm (length x width x height).
Length plus girth = 120 cm + (2 x 50 cm) + (2 x 50 cm) = 320 cm
Since the length plus girth of the package exceeds 300 cm, it is considered a “Large Package Surcharge” of approximately $77.00 as per example 2.

Minimum Billable Weight

In addition to a one-off Large Package Surcharge fee of $77.00, large packages can also be subject to a minimum billable weight of 40 kilograms.
What this means is, the carrier can also charge an additional fee based on the per kilogram rate x 40 because of how they view a large package classification.

These fees can be incurred because;

1. Large packages may require additional handling, equipment, or labour, which can increase the final cost of shipping.
2. Large packages take up more space on trucks, planes, or other modes of transportation, which can limit the carrier’s capacity to carry other shipments, and so increase the cost of shipping.
3. Large packages tend to be heavier, which can also limit the carrier’s capacity to carry other shipments, and increase the cost of shipping.
4. Large packages may pose additional risks to the carrier, such as damage to equipment, Workplace Health and Safety (WHS) compliance, injury to workers, or increase the risk of accidents occurring during shipping.
5. Large packages may require special delivery arrangements or equipment, such as lift gates or pallet jacks, to be delivered to certain locations.