Sorting and Segregation Fee

A sorting and segregation fee is charged by LTL carriers when they're required to separate freight within a shipment into distinct groups – typically to match different purchase orders, receiver departments, or delivery instructions at the consignee's facility. Rather than delivering the shipment as a single unit, the carrier must break down pallets or rearrange handling units so each group can be identified and received independently. The fee covers the labor and time required for this additional handling at the carrier's terminal or at delivery.

This charge commonly arises when a shipper consolidates multiple purchase orders for the same consignee onto a single shipment but the receiver requires each PO to be delivered separately – sorted by PO number, SKU, or department. Grocery and retail distribution centers are frequent triggers, as their receiving processes are organized by PO and they may reject or delay freight that arrives commingled. Carriers typically charge $25 to $75 per unit or a flat fee per occurrence, depending on the complexity of the sort.

For food and CPG shippers fulfilling orders to large retailers, sorting and segregation fees can become a recurring line item if shipment-level packaging doesn't align with the receiver's intake process. The most effective prevention is palletizing by PO at the origin – ensuring each pallet corresponds to a single purchase order so the carrier delivers it as-is without additional handling. When that's not possible due to order size or pallet efficiency, clearly labeling each handling unit by PO and including detailed delivery instructions on the BOL reduces the likelihood of carrier-side sorting charges.