The trucking industry is known for its unexpected changes and disruptions. Unfortunately, truck drivers are usually caught in the middle of the chaos. It can be incredibly frustrating and costly for drivers to be booked for a load that either no longer exists or is no longer ready, as they have often already committed time, resources, and effort for the job. This is where TONU charges can be helpful to drivers seeking to recoup some of the costs for when their truck is ordered, but not used.
What is TONU?
Truck Ordered Not Used or TONU (“Tow-New” or “Ton-U”) is a term used in the trucking industry to describe a situation where a truck driver arrives at a designated pickup location but cannot load or transport the intended cargo due to circumstances beyond their control. In such cases, TONU charges are applied to compensate the driver for the time and expenses incurred because of the unutilized truck. To compensate for the time and expenses incurred during the unutilized period, the shipper or freight broker may pay TONU charges to the driver. These charges are meant to offset the costs associated with the wasted trip, including fuel, maintenance, and lost revenue from potential alternate loads that the driver could have taken on.
What is the process for charging TONU?
Properly charging a TONU fee requires a systematic approach to ensure both clarity and professionalism. Below are the steps to follow:
1. Include TONU in Your Contract or Rate Agreement
The first step to successfully charging for TONU is ensuring that it’s outlined in your rate confirmation or broker/shipper-carrier agreement with brokers or shippers. Having a clearly stated TONU policy protects you and makes it easier to invoice when the situation arises. This policy should specify:
When a TONU fee is applicable (e.g., canceled loads, loads not ready within a set timeframe)
The amount to be charged (or how it will be calculated)
Terms of payment (e.g., when payment for TONU is due)
2. Get Documentation of the Situation
Documentation is key when claiming a TONU charge. This ensures you have evidence to support your case should any disputes arise. Some essential documents include:
Rate confirmation: Proof that you were assigned the job, including pickup and delivery details.
Arrival time documentation: Record the time you arrived at the pickup location. This can be done using electronic logging devices (ELDs), GPS tracking, or even time-stamped photographs.
Communication logs: Save any communication with the broker or shipper, such as emails, text messages, or phone logs that document the cancellation or delay. Written confirmation of the cancellation is ideal.
BOL (Bill of Lading): If a BOL was issued but the load was canceled, retain this document for additional proof.
3. Invoice the TONU Charge
Once you’ve gathered the necessary documentation, you’re ready to invoice the broker or shipper. Your invoice should be professional and include the following details:
Invoice number
Date of service
Description of the service (e.g., “TONU – Truck Ordered Not Used”)
Rate (for TONU as specified in the rate agreement)
Total amount due
Payment terms (due date, payment methods)
In many cases, a TONU fee will be paid within the same timeline as regular load payments (15-30 days), but it’s important to follow up if payment is delayed.
What does a typical TONU charge look like?
TONU rates can vary based on the region, market conditions, and your agreement with the broker or shipper. Typically, a TONU charge ranges from $150 to $400, though the amount may be higher for longer distances traveled to the pickup location. Factors that influence the TONU rate include:
Distance traveled: The farther the driver travels to the pickup, the higher the TONU charge may be.
Time spent waiting: If a driver spends several hours at a facility before the load is canceled, additional waiting fees (detention) may be tacked onto the TONU invoice.
Always ensure that your rate agreement specifies a fair TONU rate that compensates you for your time and expenses.
Best Practices for Charging TONU
Be transparent: Communicate upfront with your clients about your TONU policy before taking on a load. Clear communication can prevent misunderstandings when a load is canceled.
Follow up on payments: Don’t hesitate to follow up on any unpaid TONU charges. Treat them like any other invoice, and make sure to keep a record of payment attempts and conversations.
Know their policy: Familiarize yourself with the broker or shipper’s terms and industry standards regarding TONU.
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Soshaul Logistics LLC and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. It is meant to serve as a guide and information only and Soshaul Logistics, LLC does not assume responsibility for any omissions, errors, or ambiguity contained herein. Contents may not be relied upon as a substitute for the FMCSA's published regulations. You should consult your own tax, legal and accounting advisors before engaging in any transaction or operation.
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