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How Do Courier Companies Decide How Much to Charge for a Shipment?
By: Earl Cavell

Anytime you are shipping something with a courier company, it can seem like a bit of a mystery when it comes to unraveling exactly how the final charge that you paid for your delivery was arrived at. This is something that is calculated using a formula the courier company uses, which is fairly similar among all courier companies. The differences are in the exact numbers that one Miami courier service may plug into that formula as opposed to their competition in order to arrive at your final fee.

The basic rate of all courier companies is figured out in a very similar way. Typically, your delivery will be assessed something called a freight class. This will be used along with the distance that your package is going to travel to arrive at the base amount that you're expected to pay for shipping. Of course, not all courier companies use this method.

While that is the common method, some courier companies that are only shipping in a certain local area may do things differently. They may have zone pricing structure where all packages under a certain size are assigned a flat rate depending on what zone they are shipping too. It always pays to actually ask your courier how they price deliveries so that you can understand what you are paying for.

There are certain things which are always going to adjust the price of your shipment upwards. Anytime you're shipping anything which needs special care or handling in order to ship, you're going to end up paying more. For instance, anything over 100 lbs requires the use of a liftgate unless your facility and that which you are delivering to have loading docks. In that case, you'll be required to pay for the rental of that liftgate.

On top of these basic rates, there is any number of extra charges which might be added to a courier invoice. A very common one is a fuel surcharge. If the gas prices have risen recently in your area and the base courier rates have not yet been adjusted to reflect that change, you will likely pay a fuel surcharge. You will also pay a fee to most couriers if you request a delivery after hours, or on a weekend or holiday. Of course, most delivery companies also have several delivery speed options, and usually, the faster you want your delivery made, the more it is going to cost you.

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Earl Cavell is a consultant for local Miami courier service and Miami messenger service companies as well as international courier service businesses.

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