Ancillary Charges

Ancillary Charges in the logistics and supply chain industry refer to additional fees or charges associated with the provision of specific services or additional requirements beyond the basic transportation of goods. These charges are separate from the core freight charges and cover supplementary services provided by logistics service providers.  

The calculation of ancillary charges can vary depending on the specific services provided and the policies of the logistics service provider. Here are some common factors considered when calculating ancillary charges: 

• Service Type: Ancillary charges can include a wide range of services such as warehousing, storage, packaging, insurance, customs clearance, documentation, special handling, or any other value-added services. Each service may have its own specific calculation method.  
• Quantity or Volume: Some ancillary charges may be based on the quantity or volume of goods being handled or the size of the storage space required. For example, storage charges can be calculated based on the duration of storage and the occupied space in square meters or cubic meters. 
• Duration: Charges for certain services, such as storage or equipment usage, may be based on the duration of service provision. This can include hourly rates, daily rates, or monthly rates, depending on the specific requirement. 
• Special Requirements: If there are specific requirements or exceptional circumstances involved, additional charges may be applied. For instance, if goods require temperature-controlled storage or if hazardous materials handling is involved, there may be additional fees associated with meeting these requirements. 
• Negotiated Rates: In some cases, ancillary charges may be negotiated and agreed upon between the logistics service provider and the customer. These rates can be based on factors such as the volume of business, the frequency of shipments, or the duration of the service agreement.