Beware of Hidden Costs in Logistics - Things You Need To Know!

Beware of the hidden costs in logistics. Not all 3PLs operate with transparent pricing. Many providers lure in new clients with low upfront delivery quotes, only to add hidden fees that significantly increase costs. These hidden charges can include but certainly are not limited to:

• Handling Fees: Charges for every time your product is touched or moved within the warehouse. This can include arrival, unloading, forklift use to store the product, unloading from pallet racking to pick orders, the actual picking of the order, the loading into the truck and the delivery with the customer. It adds up, especially when it is charged on a per carton basis. 

• Pallet Wrapping Fees: Extra costs for wrapping pallets before dispatch.

• Labeling Fees: Additional fees for adding stickers or labels to boxes.

• Pallet Rental Fees: Monthly charges for using CHEP or LOSCAM pallets.

• Stocktake Fees: Costs for performing mandatory monthly stock audits. This cost can be $50 - $500 per month.

• Seasonal Surcharge Fees: Higher rates during peak periods like Christmas and Easter. This is not a fee charged for public holidays, rather it’s just “ a busy time of year surcharge”.

• Delivery Zone Fees: Extra charges for certain delivery regions beyond the quoted service area. We are not talking about the obvious ones like distant rural locations here. This fee can be applied by some 3PL’s to any postcode that is out of a 10km CBD radius.

• Fuel Levies: Some companies can charge up to 35% extra as a fuel levy. This is probably the worst one as most will not let you know what the cost is and just say “The fuel levy is flexible and will be updated each month”. That is far from being honest.

• Weather Surcharge Fees: We know of several companies that have added significant fees after natural disasters, claiming increased delivery times. This was even though the destinations they were delivering to were unaffected by the weather events. 

These hidden costs can lead to invoices that are 3-4 times higher than the original quote, creating financial uncertainty for your business.

Why Deliver & Store is Different

At Deliver & Store, we believe in transparent and straightforward pricing. There is no benefit to us hammering our clients with hidden fees and losing their trust. They will simply leave and choose another 3PL. Our clients enjoy clear, upfront costs with no unexpected invoice shocks. We ensure that your business receives reliable refrigerated logistics without the worry of hidden fees or misleading pricing structures. Whoever you end up partnering with, make sure you read all the fine print and do the sums to know exactly what you are paying. If in doubt, get it in writing. If they won’t do that, you have the wrong partner! We have had clients, who in the past, had been quoted $25 to deliver 3 cartons, only to be invoiced $152 once all the additional fees were added. Beware!

Conclusion

Partnering with a refrigerated 3PL is a strategic move for any business dealing with perishable goods. By ensuring temperature integrity, cost efficiency, compliance, and scalability, a 3PL helps you streamline your supply chain while maintaining product quality. However, it’s crucial to choose a provider with clear pricing and a trustworthy reputation.

If you’re looking for a transparent and reliable logistics partner, contact Deliver & Store today. Let us take the stress out of refrigerated logistics so you can focus on growing your business.