Understanding TONU in Truck Dispatching
Today, we’re addressing a topic that every independent truck dispatcher will 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 for your 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 broker for more compensation might be a good idea. The final amount can vary based on the broker and the specific situation.
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 a truck dispatcher need to understand what is a TONU and try to get it for your clients wherever you can. It ensures that clients receive fair compensation when unforeseen problems arise. Being well-informed empowers you to advocate effectively for your client’s interests.
© By Alfa X Logistics August 2023
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