Operational Excellence

What Makes a Good Logistics Provider?

Choosing the right logistics provider is crucial for the success of your e-commerce business.

Published: Jun 2, 2024

Last Edited: Apr 25, 2025

Choosing the right logistics provider is crucial for the success of your e-commerce business.

In the intricate landscape of ecommerce logistics, mystery charges from service providers can be a thorny issue. These unexpected fees, if left unaddressed, can significantly impact your bottom line. In this comprehensive guide, we’ll explore the most common types of mystery charges, effective methods to identify them, and practical steps to rectify these challenges.

Understanding Common Mystery Charges:

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1. Additional Charges:

These charges usually relate to special handling or additional service fees that are not clearly defined by the logistics service provider on rate tariffs. An example of where these charges may be applied is inbound receiving where the 3PL logistics provider has charged for additional activities of receiving your inventory, even though it is not part of the agreed tariff.

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2. Carrier Surcharges:

These charges relate to auxiliary surcharges where certain shipping carriers don’t provide a clear breakdown of how these charges are applied. Some such examples include energy surcharge, tailgate unload, address correction and oversize package surcharge.

How to identify them: 

  • Review the carrier rate guide regularly to ensure you have the most updated list of surcharges they apply.
  • Use online shipping calculators to help you understand all fees associated with the shipment including surcharges.

Rectification:

  • Negotiate with your carrier upfront if any of these surcharges can be waived. Usually, certain carriers are flexible in relation to additional charges that can be negotiated.
  • Consider long-term contracts or partnerships with fixed fuel surcharge rates.

It’s difficult to plan for surcharge changes or to know when they will occur, but you can prepare for them. Annual rate increases are more certain, and you should plan for these accordingly.

Want to chat to a logistics partner who can help demystify your supply chain and costs so you can tap into global markets, why not get in touch with Borderless360 today? Contact us.

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