Accessorial charges when shipping Less than Truckload freight from Canada to Mexico
When receiving a quote for a Less than Truckload Shipment, have you ever asked the transportation company: What other charges may apply?
Well, you are not the only one. Many customers from different industries (automotive, plastics, pharmaceuticals, chemicals, metals, and manufacturing in general) have asked us the same question oftentimes.
As we are always happy to guide our customers and potential customers through the transportation process of Less than Truckload freight, we decided to create this post about the accessorial fees. To make it easier to understand and as our preferred LTL shipping lane is from Canada to Mexico, we have classified the accessorial fees in two groups:
- Accessorial fees that ALWAYS apply when shipping from Canada to Mexico
- Accessorial fees that SOMETIMES apply when shipping in any LTL shipment no matter the route.
If you find that the information is helpful or if you need mayor clarification, please do not hesitate to write us a comment or send us an email at firstname.lastname@example.org
Accessorial fees that always apply when shipping Less than Truckload freight from Canada to Mexico
When requesting a quote for an LTL shipping service from Canada to Mexico, the transportation company should provide you with a rate that includes three elements:
- The transportation service
- The border crossing fee (accessorial fee)
- The T&E Bond fee (accessorial fee)
We always include the border crossing and T&E Bond accessorial fees when sending a quote for an LTL shipment from Canada to Mexico, because we know that those accessorial services are always applicable to this shipping lane. However, these services are optional, which means that the customer can choose if they want us (the transportation service provider) to provide those services or if they want another party to take care of them.
US-MEXICO BORDER-CROSSING FEE
To understand this fee, first, we need to understand how the freight transportation process from Canada to Mexico works. To make it simple, we can say that the land transportation process from Canada to Mexico comprises three steps:
First step: freight is transported from the pick-up point to the US side of the US-Mexico Border.
Second step: freight is transported between the two borders: from the US side of the border to the Mexican side of the border. This is a movement is called border crossing and is made by a “transfer”.
Third step: freight is transported from the Mexican side of the border to the final destination.
Often times, the border-crossing (step 2) is not included in the transportation service. But transportation companies can provide the service for a fee. Mexicom Logistics charges 150 USD for LTL freight US-Mexico bridge crossing.
One important thing to know is that in shipments coming from Mexico to the US or Canada, most reputable transportation companies will offer the border crossing service only if they are in charge of the whole shipment door to door, this means, from the point of origin in Mexico until the final destination in the US and Canada. This is for safety reasons, given that companies can not take the risk of crossing goods that were not under their control and supervision from the beginning of the transportation process.
Please notice that the US-Mexico Border crossing fee includes only transportation services, and it does not include customs paperwork. Services offered by a customs broker are different than services offered by a transportation company. The transportation company is in charge of the transportation of the goods only whereas the customs broker is in charge of preparing and submitting documentation (eg. “Manifiesto”, “Pedimentos”, etc) to notify or obtain clearance from the government.
T&E BOND (ONLY APPLIES TO SHIPMENTS GOING FROM CANADA TO MEXICO)
Shipments being transported through the United States, that are are not intended to be commercialized in that country, do not clear customs in the US border but need to be “bonded”. The customs T&E Bond is a form of insurance to protect the United States in the event that an importer or exporter does not pay the duties, taxes or fines incurred in their imports.
Companies specialized in the transportation of goods from Canada to Mexico, such as MexicomLogistics, take care of the T&E Bond, for a fee (75 USD).
For further information about the T&E Bond, you may want to read our post: Here is what you need to know about in-bonded shipments being transported from Canada to Mexico
Accessorial fees that may apply when shipping Less than Truckload freight
Uploading and Loading Delays
Usually, transportation companies allow some loading and uploading time free of charge. However, if free time is exceeded, an extra fee will be charged. Mexicom Logistics allows 2 hours for uploading and loading free of charge.
Delays at the US-Mexico Border
At the US-Mexico border, freight has to clear customs and has to be transported between the two borders.
Usually, when the transportation company is the one in charge of transportation across the border, it allows some time free of charge at the Mexican-US border. For example, Mexicom Logistics allows two business days at the US-Mexico border at no charge. After this timeline, an extra fee of 100USD will be charged per day for Dry Vans. In case of detention with power, the fee increases to 500 USD per day for a Dry Van.
Usually, trucks unload and load goods onto loading docks. However, sometimes goods are shipped to addresses where there are no loading docks. In this situation, a lift-gate service is needed. A lift-gate is a mechanical device installed on the rear or a truck used to raise and lower items from ground level to the level of a tractor-trailer or from the tractor-trailer to the ground. This service is used to unload and load the merchandise when there is no loading dock available.
Not all trucks have a lift-gate, this is why at the moment of requesting a transportation quote the customer has to mention that the lift-gate service is required. If it is not specified that the lift-gate service is required and the pick-up/delivery address does not have a loading dock, it won´t be possible to load or unload the goods. And the shipper will need to pay for a redelivery service.
Reclassification and reweight
As we have stated in other posts, LTL rates are calculated based on many factors. Weight, dimensions, and class are the most important factors to determine the Less Than Truckload shipping rate. When asking for a quote it is crucial to have precise information about the weight and size, as well as the commodity type, in order to get an accurate LTL rate. If the weight or the pallet size changes, the rate will change as well.
As an example, let’s imagine we have three different loads, with the same freight class and the exact same dimensions, going on the same route, from Indiana, US, to Laredo, TX, but with three different weights A) 2050lbs, b)2050 lbs c) 4050 lbs. The cost will vary depending on the weight:
If the load weights 2050 lbs the cost will be 370 USD.
If the load weights 3050 lbs the cost will be 527 USD.
If the load weights 4050 lbs the cost will be 626 USD.
As we saw in our example, the price has increased by 256 USD when adding 2000 pounds to the load.
Also, it is important to remember that there is a total weight limit for a truck. The maximum load weight for a 53ft Dry Van is 21.7 Tonnes. The total of LTL shipments can not exceed the maximum weight allowed. If one of the LTL loads did not declare the accurate weight and this causes the total load of the truck to exceed the weight limits, the LTL freight will have to be sent in another truck, which will incur in extra fees and delays.
In conclusion, LTL shipments are subject to weight and volume verification, any discrepancy will generate rate adjustments.
Manoeuvers are the responsibility of shipper and consignee. In other words, transportation companies are only in charge of the transportation of goods, not of the loading and unloading. However, some companies may offer to do some manoeuvers at certain locations for an extra fee. For example, Mexicom Logistics charges 50 USD for LTL manoeuvers at its warehouse at Laredo but does not offer that service in other locations.
For more information on accessorial fees when shipping Less Than Truckload freight shipping from Canada to Mexico, contact us: email@example.com