What Is a Redelivery Charge? Causes, Calculation, and Carrier Policies
Redelivery Charge
Definition
A transportation charge incurred when a shipment must be delivered again after an unsuccessful delivery attempt.
Overview
Redelivery Charge A transportation charge incurred when a shipment must be delivered again after an unsuccessful delivery attempt. This fee appears as an accessorial on carrier invoices and applies whenever a carrier attempts delivery but cannot complete it because of recipient unavailability, restricted access, incorrect address, or other preventable issues.
Redelivery charges are a routine part of parcel, less‑than‑truckload (LTL), and full‑truckload billing. Carriers treat the first failed delivery attempt as an operational disruption: drivers return the shipment to the distribution route or terminal and schedule another attempt which consumes additional time, equipment, and admin work. That incremental cost is recovered through a redelivery fee rather than higher base rates.
What The Fee Typically Covers
Redelivery fees compensate carriers for direct and indirect costs associated with making another delivery attempt. Typical components include driver time and fuel, vehicle usage, terminal handling, re‑sorting, scheduling and customer service time, and any paperwork or electronic exceptions processing. For LTL and truckload moves, it also covers the cost of detouring a linehaul, making a special stop, or returning to a terminal.
- Driver and vehicle time: Additional labor hours and miles driven for the second attempt.
- Terminal handling: Unloading, re‑staging, and paperwork at the local facility.
- Administrative costs: Rescheduling, customer contacts, and exceptions management.
Why The Charge Matters For Retailers
Retailers often function as the bill‑to party for shipping accessorials. Repeated redeliveries erode margin and complicate customer service. When redelivery fees are passed to consumers, they can harm conversion and increase disputes; when absorbed by the retailer, they compress profitability and distort shipping cost models. For omnichannel retailers and 3PLs, redelivery frequency indicates weak address validation, appointment processes, or last‑mile coordination.
How Carriers Define And Calculate Redelivery Fees
Each carrier publishes its own rules and price schedule for redelivery. Fees vary by mode (parcel versus LTL), size/weight, and geography (urban vs rural). Parcel carriers commonly apply a flat fee per parcel or per shipment; LTL carriers may apply a percentage of linehaul or a multi‑hundred‑dollar fixed surcharge for reconsignment or special delivery attempts.
- Flat fee model: Common for small‑parcel carriers—predictable per‑package charge for each unsuccessful attempt.
- Accessorial percentage: Used by some freight carriers—adds a percentage to the original freight charge for extra handling.
- Distance/time based: Applied where rerouting requires significant extra miles or driver hours.
Who Pays And Who Is Responsible
Responsibility for redelivery charges is a contractual matter. Retailers, shippers, consignees, and third‑party logistics providers should define responsibility in the shipping terms. Standard practice in consumer e‑commerce is variable: some retailers absorb the fee; others pass it to customers as a charge or deduct it from refunds. For B2B shipments, contracts often state that the consignee pays accessorials unless the carrier or shipper caused the failed attempt.
Common Causes That Trigger Redelivery Fees
Understanding root causes helps cut repeat charges. Frequent triggers include incorrect or incomplete addresses, no one available to sign for a required delivery, restricted access (gated communities or locked docks), inaccurate appointment windows, and refusal of delivery due to damaged packaging or unaccepted freight.
- Address errors: Typos, missing suite numbers, or inaccurate street names prevent successful delivery.
- Recipient unavailability: No one present during the delivery window or after hours access restrictions.
- Access issues: Height/weight limits, narrow approaches, or security gates block the vehicle.
Practical Example — Parcel Delivery To A Residential Customer
A parcel carrier attempts delivery to a consumer at 3:00 p.m. The occupant is not home, and the parcel requires a signature. The carrier marks the shipment as a failed attempt, returns the parcel to the local facility, and schedules a redelivery. The carrier bills a redelivery fee to the shipper or consignee depending on the shipping terms. If the retailer provided an accurate two‑hour delivery window or offered an alternate delivery option (pickup at retail or hold for pickup), the redelivery could have been avoided.
Cost Control Strategies For Retailers And 3PLs
Retailers can reduce redelivery frequency and related costs with operational and customer‑facing changes. Address validation at checkout, delivering clear appointment windows, providing delivery notifications and real‑time tracking, and offering flexible delivery options (carrier pickup, locker, or appointment) lower the risk of failed delivery.
- Prevention: Use address validation and telephone/OTP confirmations for high‑value shipments.
- Customer options: Present delivery choices such as signature waiver, scheduled delivery, or hold‑for‑pickup at checkout.
- Carrier negotiation: Include redelivery rules and caps in carrier service agreements to limit liability.
In short, the Redelivery Charge reflects the extra cost of attempting delivery after an unsuccessful first attempt. It is an accessorial that varies by carrier, mode, and contract terms. Retailers should track redelivery causes, negotiate clear billing terms, and implement customer‑facing delivery choices to reduce occurrences and protect margins.
Sources And Additional Reading (3)
- Redelivery Service
“Redelivery Service.” United States Postal Service, https://redelivery.usps.com/redelivery/.
- National Motor Freight Traffic Association
“National Motor Freight Traffic Association.” National Motor Freight Traffic Association, https://www.nmfta.org/.
- Federal Motor Carrier Safety Administration (FMCSA)
“Federal Motor Carrier Safety Administration (FMCSA).” Federal Motor Carrier Safety Administration, https://www.fmcsa.dot.gov/.
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