Most freight today still moves Business to Business, but there is still a good amount of freight that is moved from a commercial location to a residential area or limited access. This has increased slightly over the last few years as UPS and FedEx parcel implemented restrictions on max dimensions even further.
So what is the difference between a business delivery and a limited access delivery?
Businesses normally have a dock and can receive during normal business hours. Limited Access deliveries are locations that normally cannot receive during normal business hours or do not have a dock where the carrier can unload. For a limited access delivery, a carrier will usually have to change its route, use special equipment and also call ahead to schedule an appointment.
Note: not all businesses without docks are limited access like a restaurant, for example. They still may require additional services though. Example a pizzeria would be considered a business but likely would need a liftgate to deliver that new commercial stove.
What are some other examples?
The easiest to consider limited access is a residential delivery, even if there is a home based business registered at the address the carrier will define it as a residence based on the building not having a dock to unload. Other common examples that can be considered limited access are Places of Worship, Schools, Construction Sites, Mine Sites, Farms and Rural Locations, Military Bases/Installations, Camps and even Government Buildings.
Why do carriers charge more to deliver to a Farm, Residence, or School (Limited Access)?
The reason why carriers charge more to deliver to these kind of locations is actually quite simple. It cost them more money to deliver to these locations than to a business with a dock. Most of a carriers’ costs come from the first few miles picking up and the last few miles delivering. If a carrier has to deliver to a residence, for example, they have to call ahead and schedule delivery. This delivery time that is scheduled may take him off his/her usual route. The driver will like be driving a smaller trailer or with a liftgate and thus make fewer deliveries that day. Carriers normally have fewer trucks with liftgates.
Commercial Buildings with docks are normally clustered, a carrier can easily make multiple pickups or deliveries in a business park in the same time it may take to make one limited access delivery. They also don’t normally have to schedule an appointment to deliver so they save time and resources.