Table of contents
Capacity surcharge is a surcharge that has been introduced by the carriers. It mainly applies to road transport and courier services. Sometimes it is also referred to as the COVID19 surcharge or emergency surcharge (ESS).
What is capacity surcharge?
The surcharge is usually a percentage of the freight amount and can vary from carrier to carrier.
It is important to note that oil surcharges may be added to the fee - so check with your carrier if they add oil surcharges to the fee.
According to our statistics, around half of the carriers charge oil surcharges, while the rest do not.
Why has the capacity surcharge been introduced?
The surcharge was originally introduced as a temporary measure due to capacity shortages.
This is partly because there are fewer drivers available. It is estimated that in Europe alone there is a shortage of over 150,000 drivers.
This lack of capacity can have a negative impact on transport time and result in delays.
The introduction of the surcharge is also affected by other factors, such as the corona pandemic.
For example, due to corona, there have been fewer passenger planes and these are usually the planes that transport goods. This reduces air transport capacity, which can result in higher prices and longer delivery times.
Why do carriers choose capacity surcharges?
It is important to note that the carriers could have chosen to raise the freight price, but instead they have chosen to add the capacity surcharge.
This may be because carriers want to create greater transparency around pricing and allow customers to make informed choices.
Overall, the capacity surcharge can have a significant impact on shipping costs, especially in these times of increasing demand and capacity shortages. It is therefore important to understand and consider this surcharge when planning your shipment and choosing a carrier.
More people are starting to remove the surcharge again
From 1 January 2024, the first carriers began removing ESS, and from 1 April, several have announced that they will also remove or begin phasing out the surcharge.
We see that capacity surcharges are often a top 3 shipping cost, after freight and oil.
Therefore, we recommend that you check with your carrier to see if they remove the surcharge as it represents a significant percentage of your shipping costs.
We are ready to help you
We hope this information has been useful and that you now have a better understanding of what the capacity surcharge is and how it can affect your business.
If you have any questions or need help, you are welcome to Contact us. We are always ready to help you better manage your freight costs and optimise your business.
