What Is A Truck Order Not Used (TONU) Fee?
While the logistics process usually runs smoothly, it’s important to note that delays or cancellations can lead to additional fees. These Truck Order Not Used (TONU) fees can significantly impact the overall cost and efficiency of the shipping process, making it crucial to understand and manage them.
A Truck Order Not Used, or TONU fee, is a standard fee that a trucking company charges shippers if a shipment is canceled at the last minute or isn’t available for pickup when the driver arrives at the location.
Last-minute cancellations can be frustrating for the carriers as they result in wasted time, effort, fuel, and missed opportunities for other loads.
This charge compensates carriers for not only the inconvenience of the situation and lost time, but also the loss in revenue. The charge typically ranges from $150 to $300, with the standard rate averaging $250.However, specialized truck and trailer bookings will incur a higher fee, especially for overweight or out-of-gauge shipments, which start at $500.
There are various reasons as to why you may be charged a TONU fee, which include:
- A last-minute cancellation
- The load is not ready for pickup
- The driver arrives for pickup, but the customer or goods are not available
- The wrong type of transportation was requested
- Manufacturing and construction site delays
These fees are determined in a few ways. One is if the load is overweight or out-of-gauge, and the level of inconvenience that the cancellation causes for the trucker.
For example, a TONU fee will be more costly if the truck is already on-site when the shipment is canceled than if the cancellation occurs when the truck has yet to leave for the load. It’s essential to check the contract terms, as the trucking company’s policies may also affect the fee amount.
How Truck Order Not Used (TONU) Fees Are Paid
Typically, the trucker that was supposed to pick up the freight will verify the need for a TONU charge by showing a record of the time the booking was made, confirmation of arrival at the requested location, and then the cancellation by the customer.
All of these documents serve as proof of a breach of the contract. A TONU fee is charged within four hours of the scheduled pickup time or when the pickup is canceled.
Depending on the carrier and shipper agreement, the trucking company will send a TONU fee invoice to the customer or the third party if one is involved. Usually. the party that scheduled the service with the carrier will be liable for paying the fee.
However, it’s common for the third party to pass the charge over to the customer when it’s a cancellation or last-minute change to the agreement.
Other Information Regarding TONU Fees
If you believe the fee that you received needs to be corrected, it’s recommended that you seek advice from your logistics provider to see what can be done to waive the fee.
This is why it’s essential to keep all documents associated with the shipment so that you have grounds to address any disputes if they happen to arise.
There are other fees that carriers can charge for similar situations. Usually, a TONU fee is charged when a load is canceled altogether. For issues with delays, carriers charge either a layover or detention fee.
A detention fee is when the driver is delayed at the pickup or delivery location.
A layover fee is when the driver gets delayed by the shipper or receiver by a few days. Again, these fees are in place to compensate the trucking company for lost time and revenue.
How To Avoid Truck Order Not Used (TONU) Fees
Although unforeseen circumstances and emergencies happen, there are steps you can take to avoid a TONU fee on your next shipment.
First and foremost, it is vital that you fully understand your contract terms, especially regarding TONU fees.
Your contract should have all the information regarding what constitutes an issuing of the fee and how much, as it does vary slightly from carrier to carrier.
If you have any uncertainties about your contract, immediately seek clarification.
Effective communication between all parties involved is critical to the shipping process and helps to avoid extra charges. Openly communicating with the consignee and the trucking company to ensure everyone is aware of the delivery date, time, and location is highly suggested.
If anything changes, it’s crucial to let everyone know.
A TONU fee is essential to logistics processes as it compensates carriers and serves as a financial deterrent against delays and cancellations. They are implemented to help mitigate these situations so that supply chains can keep moving efficiently.
At the end of the day, Truck Order Not Used fees are not ideal for either party, so implementing steps to maintain straightforward operations and strong relationships is essential to avoid unnecessary trips or costs.
