Introduction
The transport market has become highly competitive, and every carrier strives to contain their costs. Consequently, carriers charge supplements for shipments that do not fit their standard process.
However, each carrier has its own requirements that you can use to your advantage. Understanding surcharges and requirements will help you manage shipping costs more effectively and avoid expenses by choosing the carrier that suits you best.
Most Common Carrier Surcharges
We will guide you through the most common carrier surcharges and how to manage them:
Bulky Goods and Oversized Dimensions
Bulky goods are packages that require extra work from the carrier due to their size. Oversize fees indicate that the carrier's standards have been exceeded. Think of it like being at the airport: ordinary luggage goes on the conveyor belt, some items require extra care (strollers, skis, bicycles), while those exceeding the norm incur significant fees or are refused.
Most expected on: DHL, GLS, FDX...
Non-delivery Surcharge
Delivery may fail due to issues related to the recipient's address, customs clearance, unpaid duties and taxes, prohibited items, or refusal by the recipient. Providing the recipient's phone number and mailing address significantly reduces the rate of undeliverable shipments.
Most expected on: DHL, GLS, PTP...
Demand Surcharge
During the COVID period and the e-commerce boom, carriers took advantage of "emergency situation surcharges." To ensure business continuity and margins, peak period surcharges were introduced and are now the norm. Follow your main carrier's announcements for the period.
Most expected on: DHL, DHE, FDX, DPD...
Remote Territory
Delivering a package in a city does not have the same cost as in a remote region. Private carriers are not obligated to provide the same service to all citizens. They will use their own measures to determine hard-to-reach locations and charge accordingly (islands, coastline, mountainous areas, secluded zones).
Most expected on: DHE, FDX, UPS...
Duties and Taxes
Quivo only covers duties and taxes on behalf of the merchant when the shipment is sent under DDP (Delivered Duty Paid) terms. If the merchant does not ship DDP, duties and taxes are the responsibility of the end customer, and Quivo does not intervene.
What are Freight Adjustments?
Freight adjustments are generated by Quivo based on billing data provided by the carrier.
Weight Adjustments
If the weight measured by the carrier reaches a weight higher than indicated in our price list, we charge you the difference between the measured weight and the billed weight. We charge the difference between the price calculated based on the carrier's weight and the price previously billed based on the Connector weight.
| Weight | 1kg | 2kg | 3kg |
|---|---|---|---|
| Selling Price | €4.00 | €5.00 | €6.00 |
Example: Your item in Connector with its packaging is measured at 0.80kg; you are billed €4.00. The carrier measured a weight of 1.5kg; the new price calculated for 2kg is €5.00.
Freight adjustment = Price (carrier weight) - Price (connector weight) = €5.00 - €4.00 = €1.00.
The weight measured by the carrier is used as the standard.
Shipments Outside Connector
Shipments outside Connector are billed through freight adjustments. These are all non-processed shipments made on our behalf, such as returns or imports. We advise you to always book through Connector, as you might pay for a service on which we do not have a discount.
Weight Corrections by the Carrier
Previously, carriers only billed a new price based on the measured weight. If this weight fell into a higher bracket in our price list, Quivo generated freight adjustments. Some carriers have become stricter and issue a penalty even for small weight discrepancies that do not reach a higher weight bracket.
- Weight Correction by Carrier: Correction based on the weight difference measured by the carrier.
- Insufficient Postage Fee: Fixed fee for reporting an incorrect weight, which allows for paying the carrier less upfront. This amount is often higher than the standard weight correction surcharge.
List of Surcharges
| Code | Name | Description | Category |
|---|---|---|---|
| AC | Address Correction Fee | Incorrect or incomplete address provided by the sender. | Label |
| AH | Additional Handling Surcharge | Special handling due to unusual dimensions, weight, packaging, or shape of the shipment. | Packaging & Handling |
| BF | Brokerage Fee | Fees applied by customs brokers for documentation management, duty calculation, and regulatory compliance. | Services |
| BG | Bulky Goods Fee | Applicable to shipments too large for standard procedures. | Packaging & Handling |
| BHF | Brexit Handling Fee | Fees related to managing customs formalities and declarations due to Brexit. | Services |
| BTF | Bonded Transit Fee | Allows goods to transit through a country without paying customs duties until their final destination. | Services |
| CDF / CF | Coding Fee / Clearance Fee | Correction of shipping data or fees for processing goods during customs clearance. | Label / Services |
| CODE | Cash on Delivery Fee | Payment collected at the time of delivery. | Payments |
| CT | Customs and Tax Fee | Fees for customs duties, taxes, and other regulatory charges imposed by authorities. | Customs |
| D | Disbursement Fee | Covers costs for payments made on behalf of the sender (duties, taxes, etc.). | Payments |
| DE | Data Entry Fee | Fees applied for manual entry or processing of shipping information. | Label |
| DGS | Dangerous Goods Surcharge | Fees for handling and shipping hazardous materials or dangerous goods. | Goods |
| DMS | Demand Surcharge | Surcharge imposed during periods of high demand to cover increased operational costs. | Events |
| DS / DSF | Delivery Surcharge / Direct Signature Fee | Surcharge for specific delivery requirements or direct signature from the recipient. | Services |
| DTP | Duties Taxes Paid Fee | Covers customs duties and taxes paid on behalf of the recipient. | Customs |
| DV | Declared Value Fee | Insurance fee based on the declared value of goods exceeding standard liability. | Customs |
| EA | Expense Allowance | Fees to cover extra costs or expenses incurred during transport. | Payments |
| EL | Extended Liability Fee | Fees applied to increase coverage for high-value shipments. | Services |
| ESF | Emergency Situation Fee | Fees applied in case of unforeseen events or crisis situations. | Events |
| ET / EV | External Territory Surcharge / Exporter Validation Fee | Surcharge for non-mainland territories or fees for validating exporter documentation. | Delivery / Services |
| FCR | Forwarder Credit Risk Fee | Covers potential risk of non-payment or default by clients on credit transactions. | Payments |
| FSA | Fuel Surcharge | Fuel costs passed on for carriers whose fuel is not included in Quivo rates. | N/A |
| GOV-CD | Customs Duty | Government-imposed tax on imported or exported goods. | Customs |
| GOV-IST | Import Sales Tax | Tax collected on goods imported into a country, based on value. | Customs |
| I | Insurance Fee | Insurance covering the shipment against loss or damage during transport. | Services |
| IP | Import Penalty | Penalty for non-compliance with import regulations. | Customs |
| IPF | Insufficient Postage Fee | Fee for underpayment during booking (see Weight Corrected by Carrier). | Payments |
| LOG-GH / LPS | Gov. Handling / Late Payment Surcharge | Quivo fees for manual customs processing or late payment surcharges. | Services / Payments |
| LQS | Limited Quantity Surcharge | Fees for shipments containing regulated goods in limited quantities. | Goods |
| MC | Material Charges | Fees for packages with adhesive surfaces, protrusions, or non-standard materials. | Packaging & Handling |
| NSG | Not Sortable Fee | Fees for shipments that cannot be processed via standard sorting systems. | Packaging & Handling |
| OD | Oversize Dimension Fee | Fees for packages exceeding standard size or weight limits. | Packaging & Handling |
| OC | On Call Fee | Fee for scheduling shipments or services outside standard hours. | Services |
| P | Pickup Surcharge | Extra fee for scheduling or requesting a pickup service. | Services |
| P9/P10/P12 | Premium Time Fees | Fees for morning or before-noon delivery services. | Services |
| QI | Quarantine Inspection Fee | Fee for health and safety compliance inspections. | Goods |
| R / RA / RAA | Residential / Remote Area Surcharge | Surcharge for difficult deliveries in suburban, private, or hard-to-reach areas. | Delivery |
| U | Undeliverable Surcharge | Charged for shipments that cannot be delivered due to address errors or refusal. | Delivery |
| WCC | Weight Corrected by Carrier | Charge applied when the carrier measures a higher weight than reported. | Payments |
How to Manage Carrier Surcharges
- Master Data: Ensure your item master data is accurate in Connector. Precise dimensions and weights are essential to avoid extra fees.
- Optimize Packaging: Avoid oversized or oddly shaped packages that could lead to additional costs.
- Consider Other Shipping Methods: Compare carrier services to determine if another option could save you on extra fees.