Remote Area Fees and Fuel Charges are common surcharges in cross-border logistics in Europe and the United States.
In this article, Weefreight will share some methods to avoid these two charges, which we hope will be helpful.
How to Avoid Remote Area Fees
Accurately Verify the Address: Different express delivery companies have different definitions of remote areas and postal code classifications. Before shipping, you should use the remote area query tool on the express delivery company’s official website or the API of a third-party logistics platform to match the delivery address in real time. For example, FedEx’s official website has a “Remote Area Tool” that can be used to check whether the address is remote. Also, ensure that the address is complete and accurate, including the detailed street name and postal code, to avoid being mistakenly identified as a remote area due to ambiguous addresses.
Optimize Address Selection: If the delivery address is in a remote area, you can negotiate with the recipient to have the goods delivered to a nearby, non-remote address, such as a company branch, a partner warehouse, a commercial address, or a collection point. For example, Los Angeles zip code 90001 is considered non-remote, while 90002 is considered remote. Contact the recipient to confirm whether the address can be changed to 90001.
Choose the appropriate shipping method combination: For shipments to remote areas in Europe and the United States, a “dedicated line + local delivery” approach can be used instead of pure international express delivery. For shipments to rural areas in Europe, air freight can be first delivered to Frankfurt, Germany, followed by local delivery by DPD. DPD has a more relaxed definition of remote areas within the EU and may waive some remote fees. For markets with a high proportion of remote orders, such as Australia and Canada, a hybrid solution of “postal parcel + commercial express” can be adopted. Shipments under 2kg can be shipped via EMS (no remote fee), while heavier shipments can use FedEx IP services (some areas are exempt from Class C remote areas).
Split Bulk Shipments: For B2B orders, if the recipient is located in a remote area, you can negotiate to split the shipment to a nearby logistics hub, such as an Amazon FBA warehouse or a third-party overseas warehouse. The recipient can then pick up the shipment themselves or have it delivered locally, saving on remote shipping fees.
Methods to Avoid Fuel Costs
Seize the Window of Rate Reductions: Express delivery companies typically adjust fuel costs on the 1st of each month, based on the previous month’s average oil price. If you anticipate a drop in oil prices, such as a continuous decline in international crude oil prices, you can delay shipment until after the 1st of the following month to lock in lower rates.
Use a “Sea Freight + Express Delivery” Combination: Fuel costs have a greater impact on air freight/express delivery. For larger shipments, split the shipments, using sea freight for heavy/slow-moving shipments and express delivery for light/urgent shipments, to balance overall fuel costs. For example, for a 100kg shipment to the UK, 50kg of the heavier cargo could be shipped by sea (with a fuel rate of approximately 8%-12%), while the remaining 50kg could be shipped by express delivery, saving 50% in fuel costs compared to express delivery alone.
Negotiate a fuel cap with the freight forwarder: For businesses with stable monthly shipments, such as 50 or more, they can sign a quarterly or annual agreement with the freight forwarder, stipulating a maximum fuel rate of a certain percentage, such as 25%. If the actual rate exceeds this, the capped rate will be applied, preventing uncontrolled costs from fuel price spikes.
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