TONU in Truck Dispatching | LearnDispatch (2024)

DISPATCHER'S BLOG

  • Nov 2023
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TONU in Truck Dispatching | LearnDispatch (1)

Understanding TONU in Truck Dispatching

Today, we’re addressing a topic that every independent truck dispatcherwill eventually encounter: TONU. Let’s delve deeper into what it means and its implications.

TONU stands for “Truck Ordered Not Used”. To provide clarity, consider this scenario: You’ve booked a load foryour client (a trucking company). The truck driver proceeds to the shipper to collect it, only to be informed that the load delivery date has been changed and it is not ready to be picked up today.

Upon contacting the freight broker, they confirm the delay. In such situations, where the trucking company has spent time and fuel but was not able to pick up a load, TONU becomes relevant. Most freight brokers and freight forwarders in the trucking industry are very familiar with TONU, and it is common practice for them to pay compensation in such a situation.

What TONU looks like?

Practically speaking, a TONU is basically a rate confirmation. However, instead of detailing a transportation service (carrier line haul) and freight charges (rate), it indicates “truck ordered not used” followed by a compensation amount. Currently, the industry standard for TONU is around $150. This might be adequate if a transportation company didn’t have to travel too far and didn’t waste much time. However, if your client has traveled far or spent a lot of time,negotiating with the brokerfor more compensation might be a good idea. The final amount can vary based on the broker and the specific situation.

TONU in Truck Dispatching | LearnDispatch (2)

Dealing with Freight Brokers refusing to pay TONU

What steps should you take if a broker is reluctant to pay TONU? Firstly, review the broker-carrier agreement and/or the rate confirmation. There might be clauses or fine print that support your claim. If such provisions exist, point them out to the broker. A good broker will typically pay TONU without any issues. However, there might be instances where some brokers refuse or delay TONU payment. In such cases, consistent follow-ups, calls, and emails can be effective. If a freight broker or freight forwarder remains unresponsive, you may want to tell them that you will post a review indicating they do not pay TONU.

Situations Exempt from TONU

It’s essential to recognize that not all situations will qualify for TONU. For instance, if your client arrives later than the scheduled time of arrival for their pick-up or if the shipper rejects the client’s equipment due to the wrong equipment type or unsatisfactory conditions, the broker has a valid reason not to pay a TONU.

In conclusion, you as atruck dispatcherneed to understand what is a TONU and try to get it for your clients wherever you can. It ensures that clients receive fair compensationwhen unforeseen problems arise. Being well-informed empowers you to advocate effectively for your client’s interests.

© By Alfa X Logistics August 2023

Are you thinking about becoming an independent truck dispatcher?LearnDispatch offers online truck dispatcher training courses which are suitable for people not familiar with transportation industry. Learn more about our training by visitingTraining Detailspage orchoose your course by clicking here.

TONU in Truck Dispatching | LearnDispatch (2024)

FAQs

TONU in Truck Dispatching | LearnDispatch? ›

Practically speaking, a TONU is basically a rate confirmation. However, instead of detailing a transportation service (carrier line haul) and freight charges (rate), it indicates “truck ordered not used” followed by a compensation amount.

How much should Tonu be? ›

While they can be inconvenient, they won't break the bank. Generally ranging from $150-$300 per truck for standard TONU charges, your costs may vary. Specialized truck and trailer bookings incur higher TONU fees. These fees start at $500, especially for over-dimensional or overweight shipments.

What is tonu in trucking? ›

TONU, an acronym that stands for “Truck Order Not Used”, is a standard logistics term used to describe a last-minute cancellation fee.

Who pays the Tonu fee? ›

A TONU fee is a charge that the shipper pays in the event of a last-minute cancellation. These fees are meant to help you recoup some of your losses from the canceled load. TONU fees are typically $150 for a dry van and can go up to $300 for a reefer.

What is the average cost of a Tonu truck order not used? ›

Keeping in mind that your situation may vary, the vast majority of TONU fees cost between $150-$300 per truck. However, companies that have booked a specialized truck and trailer — for an over-dimensional and/or overweight shipment — pay specialized TONU fees (these are more expensive).

How is Tonu different from layover? ›

Usually, TONU fees refer to orders that are completely canceled, though. If you're having delay issues like layovers or detentions, there are separate fees for those. Some transportation companies charge an hourly fee for layovers and detentions, and some charge a flat or daily fee, depending on the delay.

How much is a layover fee in trucking? ›

Standard layover pay is typically a flat fee ranging from $50 to $200 per day. Hourly layover pay can range from $10 to $20 an hour. What does detention mean in trucking? Detention in trucking refers to the time a driver spends waiting at a shipper or receiver's facility beyond a specified time.

How much is detention in trucking? ›

The detention rate is a fee that carriers charge for their time spent waiting at loading docks, and pricing can range from $25 to $100 per hour.

How do you charge for trucking? ›

Trucking rates are calculated on a per-mile basis. Calculate the mileage between the starting and destination points. For this example, the trip begins in Atlanta and ends in Miami. Divide the overall rate by the number of miles from the start to destination.

How long can a shipper detain a truck? ›

How long and how much? Typically, detention pay trucking standards dictate that trucks must be loaded within two hours. After that, the shipper is expected to pay from $25 to $100 for each hour the driver is kept waiting over the limit.

How much is a stop off fee for Drayage? ›

Stop-Off Charges

Each additional stop you add to a load has an additional charge. Typically a stop-off charge will range from $50 to $100 per stop.

What is a stop off fee in trucking? ›

What is a stop-off fee? A stop-off fee is assessed by the trucker if a shipment is split between two or more delivery locations (or empty return location).

What is the standard detention rate for trucking? ›

The detention rate is a fee that carriers charge for their time spent waiting at loading docks, and pricing can range from $25 to $100 per hour.

What is the average full truckload rate? ›

National average flatbed rates are $2.44 per mile, $0.08 less than the July average. The Southeast has the highest average flatbed rates at $2.59 per mile. The lowest rates are in the West, with an average of $2.21 per mile. Nationally, load-to-truck ratios are at 9.19, compared to 11.89 in July.

What is a typical profit margin charged by a freight broker? ›

What does gross margin mean for freight brokerage? Gross margin numbers are often displayed as a percentage of net sales and for a freight brokerage, usually range from 10% - 20%. This means that for every $1 you pay your brokerage, they usually take away less than $. 15 in gross margin.

What is a minimum charge in trucking? ›

Minimum Charge (MC) - the least charge for which a shipment will be handled. Minimum Truckload- the weight at which shipment is handled at a truckload rate. Mixed Truckload - a truckload of different articles combined into a single shipment.

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