If you would like to learn more about Springpack and our services, use the form below to submit an enquiry, or get in touch with one of our packaging experts by…
Unexpected Carrier Surcharges?
Unexpected Carrier Surcharges
If you’ve ever been surprised by an unexpected surcharge on a shipment, you’re not alone. Carrier surcharges are a common frustration for many businesses, especially when they come as a surprise. Surcharges can quickly eat into your margins and make it harder to manage shipping costs.
Understanding why these surcharges happen, and how to avoid them, goes a long way to helping keep your logistics operation running smoothly and your costs under control. In this guide, we’ll explain what carrier surcharges are, why they’re applied, and what you can do to steer clear of them in the future.
What is a Carrier Surcharge?
A carrier surcharge is an extra fee added to the standard cost of shipping a parcel.
These charges are usually applied when a shipment doesn’t meet the carrier’s expected specifications. This might happen if:
A parcel is larger or heavier than declared
More items are shipped than originally agreed in your contract
The packaging used is incorrect or not suitable for transport or shipping
Barcodes or address labels cannot be read by automated processes
So if your shipment falls outside what’s expected or agreed upon within your shipping contract, you may be charged a surcharge.
Why do Carriers have Surcharges?
Surcharges help carriers cover the additional costs involved in handling non-standard shipments. This might include:
Manual processing or sorting of parcels
The need for extra fuel or space due to oversized shipments
Extra handling for items that are awkwardly shaped or poorly packed
They also serve as a deterrent to businesses that might be tempted to under-declare parcel sizes or weights in an effort to reduce shipping costs.
Surcharge Terms & Definitions
Volumetric Pricing
Volumetric Pricing is a pricing calculation based on the volume of the package, not the weight. Your consignment being over volume than your carrier allows can lead to surcharges.
Volumetric Pricing
Volumetric Pricing is a pricing calculation based on the volume of the package, not the weight. Your consignment being over volume than your carrier allows can lead to surcharges.
Irregular Dimension and Weight (IDW)
Irregular dimension and weight means that the package is not a uniform size or weight. This could be because it is very large, very heavy, or an awkward shape to transport.
Out of Gauge
Being out of gauge means that the goods being shipped are too big for automatic sorting, this leads additional fees in consignment/parcel pricing.
Common Reasons for Surcharges
Non Rigid Packaging
Using non rigid packaging such as mailing bags can result in surcharges if your product is not inside of the mailing bag correctly. When you ship a product, you provide the height, length and width.
If items inside of a mailing bag slip, perhaps theyve bunched or have stacked on top of eachother, the parcel has suddenly become taller or thicker than agreed. This additional height can push your shipment into the next height category, and lead to surcharges to upgrade the service, or to compensate for additional time taken for manual sorting.
To counter this, you should always choose the correct size mailing bag for your product. You may also wish to add a cardboard insert into the mailing bag to help keep it rigid during shipping.
Incorrectly declared weight
Incorrectly declaring weight for a shipment also leads to additional charges. This sometimes happens when the weight of the product is declared, and not the weight of the product + it’s packaging.
Non standard packaging
Excessive tape or non-standardised packaging materials are common causes for surcharges.
This could be packages in hessian sacks, suitcases, drums or wrapped in paper. There are many reasons why these packaging materials could gain additional charges, but usually it’s because they’re likely to roll or become damaged in transit and require manual sorting.
Size is Outside of Contract / Out of Gauge
Being out of gauge or out of contracted size leads to additional costs and surcharges. If you have a standard shipping rate for parcels agreed in your contract, a package that is bigger your agreement will lead to increased prices for shipping.
Irregular Dimenson & Weight
Irregular dimensions and weight of a package is another cause of surcharges during shipping.
This can be caused by irregular sizes, such as being a bigger than the automated belts allow for from your delivery servcie. If your package can’t fit onto an automated belt, or is likely to roll around it will need to be sorted by hand, incuring the surcharge.
Barcode or labels are unreadable
Address labels being unreadable or missing completely can lead to surcharges. When a parcel travels through a logistics network, the address label or barcode is read by serveral automatic barcode/address readers. Having tape across an address/barcode, unlegible writing, or a barcode that’s partially cut off will mean that the reader cannot read the details on the package. It is then rejected by the machine and has to be relabelled by hand.
These extra delays and admin lead to surcharges.
Help with surcharges
Below is a directory of popular shipping providers and information on prices for delivery services and explainations for surcharges.
How to Avoid Surcharges
Quite unsurprisingly, avoiding surcharges is the best way forward for your operation.
Overhanging Packaging
Ensure any overhanging packaging is securely taped down, and if your items are likely to slip and bunch up inside the packaging during transit, consider using something to brace the package to make it more rigid. Ensuring products aren’t protruding from your package by choosing more appropriate materials mean that your shipment is less likely to require manual sorting, reducing the risk of a surcharge.
Consignment Sizes and Weights
Ensure your parcel weight is correct at the time you are booking your shipment, and ensure that your package size is within your carrier’s size guidelines.
You may also save money by breaking large consignments down into smaller consignments – some services cost a flat fee, and then charge per additional kg. Others will charge a flat fee per parcel, and then a reduced rate per additional part of a consignment.
IDW Specialist Carriers
Switch to a dedicated IDW (irregular dimension & weight) shipping partner, if you do ship out a lof or irregular loads, you may wish to look into an IDW specialist carrier, or speak with your existing carrier about IDW options. If your carrier is expecting an irregular parcel, they are less likely to apply surcharges or additional shipping rates.
Clear labelling
Use self adhesive labels, printed on a digital label printer for printing addresses and barcodes, and avoid adding tape over the top of the labels, so that they can be easily scanned automatically.
Following these tips can help you keep your carriage prices low and reduce unexpexted surcharges, meaning your shipments delivered to where they need to be as soon as possible. If you are unsure on the best way to package your goods to avoid fees and charges, contact one of our Packaging Experts for free packaging advice.
Packaging Materials
Use standardised packaging, as described by your carrier (This is usually cardboard boxes, mailing bags and padded mailers) to avoid surcharges. Most carriers offer packaging guidelines such as this one from Royal Mail, which detail the different recommended packaging materials and ways to package specific items.
Avoid surcharges by using unusual outer packaging, such as briefcases, tote bags, sacks, or buckets, unless you are working with a carrier who specialises in these type of shipments.
Final thoughts
Carrier surcharges can be a frustrating and costly part of shipping, but with the right knowledge and preparation, they’re largely avoidable. By understanding the common causes—such as incorrect packaging, misdeclared weights, or irregular parcel dimensions—you can take proactive steps to prevent them. Choosing the right materials, sticking to carrier guidelines, and ensuring your parcels are clearly labelled and correctly measured will go a long way in keeping your shipping costs predictable and manageable.
Ultimately, reducing surcharges isn’t just about saving money—it’s about running a smoother, more efficient logistics operation. If you need tailored support, our Packaging Experts are always on hand to offer free advice and help you optimise your shipping process.
If you are interested in Packaging, Springpack are experts in the field. Our team of Packaging Experts have all of the answers to your packaging questions. Why not get in touch with us today?
Were Here to Help Guide Inform
Author: Alice Jeavons
Springpack is a UK packaging company delivering sustainable solutions that empower customers. We prioritise exceptional service, building strong relationships and developing innovative packaging solutions tailored to unique needs. Sustainability drives us, from eco-friendly materials to reusable practices minimising waste and emissions. As a family-run business, we’ve grown from humble beginnings to industry forerunners. Our passion lies in making a positive impact in our community and the lives of customers, employees, and stakeholders through outstanding service that exceeds expectations.