Managing freight costs is one of the most complex and critical challenges for today’s logistics teams. With inflation and rising customer expectations, Shippers are under pressure to maintain predictable transportation budgets. While most focus on base rates and fuel surcharges, a significant portion of spend often hides in plain sight within accessorial charges.
Accessorials are additional service fees on shipments that require extra handling or fall outside standard Carrier procedures. These include items like liftgate requirements, inside delivery, residential drop-offs and delivery to Limited Access locations. When these fees are not identified upfront, they lead to unexpected charges, strained Carrier relationships and costly billing disputes. When these fees are not identified upfront, they lead to unexpected charges, strained Carrier relationships and costly billing disputes that can delay invoicing, disrupt customer expectations and damage trust when charges are added after the shipment is complete.
Shippers looking to gain more control over freight spend and improve overall shipping performance must prioritize the often-overlooked practice of accessorial verification.
Accessorial fees account for a growing percentage of total freight invoices. According to Mastio & Company’s 2024 LTL Carrier Benchmarking Study, accessorial and surcharge pricing is one of the top decision-making factors for Shippers when selecting Carriers. These charges can represent as much as 20% of the total invoice in complex delivery scenarios. Even more concerning, inaccurate billing related to accessorials is among the leading causes of shipment disputes and delayed payments.
The financial impact can be immediate and long-lasting. A single unexpected charge, such as a $75 Limited Access fee or a $95 liftgate surcharge, might not seem substantial on its own, however, for Shippers processing thousands of LTL shipments each month, these fees can quickly add up to tens or even hundreds of thousands of dollars annually. When unverified or misapplied, these charges can often go unnoticed until audits or quarterly reviews, at which point they become difficult to dispute or recover.
Beyond the hard costs, there are operational consequences. Misidentified shipments can result in failed deliveries, missed appointments and redelivery attempts that delay service and stretch Carrier capacity. These disruptions affect not only transportation teams but also customer satisfaction, especially when delays impact downstream commitments.
Billing disputes over unresolved accessorials also create administrative burdens. Logistics and accounting teams may spend hours each week reconciling invoices, researching discrepancies and communicating with Carriers. This reduces productivity and slows down the payment cycle, which can introduce cash flow challenges for both parties.
The reputational cost is equally significant. Repeated errors and disputes may lead to strained Carrier relationships which can reduce access to capacity or diminish service levels. In competitive shipping markets, it can make it harder to secure preferred rates or schedule time-sensitive shipments.
Ultimately, the lack of accessorial visibility affects more than just the bottom line. It undermines trust, disrupts operations and limits long-term scalability.
Verification allows Shippers to gain visibility into potential accessorial charges before the shipment is booked or rated. Data from Inbound Logistics shows that Shippers using accessorial verification technology reduce billing discrepancies by as much as 30 percent and shorten invoice processing timelines by up to 25 percent. When Shippers are unaware of service needs like liftgate requirements or Limited Access destinations, they risk last-minute fees and service delays.
Limited Access locations are one of the most frequent sources of surprise accessorial charges. These include delivery points like schools, universities, military bases, residential areas, churches, prisons and construction sites. They require additional coordination or security clearances that increase service complexity for Carriers. When these requirements are not disclosed at the time of booking, the Carrier must adjust after the fact, and that adjustment often includes a charge.
When both parties know what to expect, issues like redelivery or billing corrections can be avoided entirely. That efficiency translates into better customer service, fewer disputes and faster invoice resolution.
Modern freight technology has transformed accessorial verification from a manual, reactive task into a proactive and automated process. Instead of waiting for surprise charges to surface after delivery, Shippers can now leverage intelligent tools to identify potential accessorials before a load is booked.
These platforms use real-time data, machine learning and location intelligence to detect delivery details that trigger accessorial fees. For example, if a shipment is headed to a location categorized as a school, residence or construction site, the system can flag it as Limited Access during the quoting stage. This gives Shippers a clear picture of the true cost of each shipment upfront.
Technology also supports rule-based automation that applies specific charges consistently based on shipment history or customer profiles. For frequently used delivery locations, these systems can automatically identify and apply relevant accessorials, eliminating the need for repetitive manual input.
Integrated dashboards provide even more value by tracking accessorial trends over time. Shippers can view detailed insights on which Carriers, lanes or customers generate the most additional charges and use that information to guide smarter decisions. This kind of visibility empowers teams to adjust processes, avoid recurring issues and reduce unnecessary spend.
By catching accessorial needs early and consistently applying them at the point of booking, technology not only protects the bottom line but also enhances Carrier relationships, improves invoice accuracy and creates a smoother experience for end customers.
Banyan’s accessorial verification tool delivers an elevated level of visibility directly within the freight execution workflow. Shippers gain real-time accessorial identification during rating, ensuring each shipment is accurately classified and priced. The tool is integrated into the shipment process and automatically alerts users to accessorials like liftgate, inside delivery and Limited Access needs based on the destination’s characteristics.
This enhanced functionality is made even stronger through Banyan’s partnership with Shiplify, a leading accessorial identification service. By combining Shiplify’s proprietary location intelligence with Banyan’s shipment rating technology, the platform empowers Shippers to avoid costly surprises and improve delivery accuracy.
Value Propositions and Benefits:
Automated accessorial verification is one more way Banyan helps Shippers take control of freight costs, streamline operations and deliver a better shipping experience.
To discover how automated accessorial verification from Banyan helps you avoid billing surprises, improve delivery accuracy and gain full visibility into your total shipping costs, visit banyantechnology.com.