Common Potential Trucking Costs for DDP & DAP Exports to the United States
By Vincent Wen Photo:CANVA
Companies that frequently export products to the United States, especially those operating under DDP (Delivered Duty Paid) & DAP (Delivered at Place) terms (now replacing the old DDU term, though many still use DDU out of habit), may often have questions regarding the quotes provided by freight forwarders. While the costs associated with the Asian export segment are relatively easy to understand, many exporters are less familiar with the potential costs that could arise within the United States. In fact, not only customers but even some freight forwarders who do not specialize in U.S. routes may not be fully aware of all the potential charges. Besides the basic trucking fees, fuel surcharge (FSC), and chassis fee, we will list some potential U.S. trucking costs that customers might encounter. While these fees may not always occur, understanding them can help you better grasp the reasons behind them and the associated U.S. transportation processes:
1. Chassis Split Fee: When a truck in the U.S. goes to pick up a container, it uses a chassis (a trailer frame) attached to the truck to load the container. Chassis fees are charged daily per container, usually for a minimum of two days. If the truck is too far from an available chassis, the driver might need to make an extra trip to fetch one. Given the high labor costs in the U.S., this extra effort incurs a charge. The typical fee is around $125 per container.
2. Pre-pull Fee: If issues arise at the import destination, preventing immediate delivery to the warehouse, and the container remains uncollected beyond the free time (usually 3-7 days), the port or rail yard may impose demurrage fees, which are calculated daily and can be quite expensive. To avoid these charges, a truck may be dispatched to pre-pull the container (often at night) and store it in the trucking company's warehouse, incurring a pre-pull fee. This fee typically ranges from $175 to $200 per container.
3. Storage Fee: After incurring a pre-pull fee, the container will be stored at the trucking company's facility, and a storage fee will be charged. This fee is also calculated daily, but it is generally about half the cost of demurrage fees at the port or rail yard. The fee varies by trucking company, usually around $75 per container per day.
4. Liftgate Fee: In LCL (Less than Container Load) shipments, if the delivery address lacks a loading dock or forklift, the trucking company will dispatch a truck equipped with a liftgate to facilitate unloading, adding a liftgate fee to the standard trucking charge.
5. Dry Run Fee: If a container cannot be picked up due to customs clearance issues or severe port congestion, the driver may arrive at the port but be unable to collect the container. To compensate for the driver's wasted trip, a dry run fee is charged, typically around $250 per container.
6. Residential Delivery Fee: While most import warehouses capable of receiving containers are located in warehouse districts, there are rare cases where delivery needs to be made to a residential area. Due to the complexity of navigating these areas with large trucks, an additional residential delivery fee is charged, usually around $300 per shipment.
7. Toll Fee: This fee is more commonly encountered at ports on the U.S. East Coast. Highways near these East Coast terminals often charge local tolls to truck drivers, and naturally, trucking companies pass this cost on to the customer.
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