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What is a Truck Order Not Used TONU?
A Truck Order Not Used TONU refers to a situation where a carrier has been hired to transport a load, but the load is canceled by the shipper or broker after the truck has already been dispatched.
In a real case scenario broker or shipper will usually accept the TONU charge only if the truck was close or at the pickup location when the load was canceled.
As the name suggests, the truck that was ordered for the job is not used. This can happen for various reasons, such as changes in the shipper’s requirements, miscommunication, double booking of a load, or even due to issues at the pickup point like a manufacturing delay.
Implications of TONU
When a TONU situation occurs, it can have some financial implications for the trucking company. Costs associated with the dispatched truck, such as fuel, driver’s time, and opportunity cost of missing out on other potential jobs, are all burdens that fall on the carrier. As the carrier has upheld their end of the contract and was prepared to carry out the job, it is only fair that they receive some form of compensation.
Handling a TONU Situation
It’s standard industry practice for carriers to charge a TONU fee when a load is cancelled after the truck has been dispatched. This fee is meant to compensate for the costs incurred and the potential revenue lost due to the cancelled order. TONU fees can vary, but they should be outlined in the carrier’s rate confirmation or broker-carrier agreement.
Currently, TONU fees are charged for around $150.
Upon handling TONU, the broker or shipper sends a revised rate confirmation with TONU fee to carrier, carriers has to sign it and send it back.
If a TONU fee isn’t explicitly stated in the agreement, it can be a point of negotiation between the carrier and the broker or shipper. Clear communication about the situation and the incurred costs can lead to an amicable resolution.
Prevention is better than cure. Building good relationships with reputable shippers and brokers, checking the load details thoroughly before dispatch, and maintaining clear communication channels can help reduce the occurrence of TONU situations.
Truck Order Not Used situations are an unfortunate reality in the trucking industry that can lead to a financial loss for carriers and the brokers or shippers will often decline to pay the TONU fee unless the truck was close to the pick up location.
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