How Much Is a Typical TONU Charge in Trucking?
Explore the typical costs and financial implications of TONU (Truck Ordered Not Used) charges in the trucking industry.
Explore the typical costs and financial implications of TONU (Truck Ordered Not Used) charges in the trucking industry.
A Truck Ordered Not Used (TONU) charge is a fee within the logistics and trucking industry. This charge is levied by a transportation company on the party responsible for freight charges when a truck is dispatched for a shipment but the load is not ultimately moved. It serves to compensate carriers for costs incurred when a scheduled pickup falls through.
TONU fees are a mechanism for carriers to recoup some of the financial losses associated with wasted time and resources. When a truck is ordered and prepared for a shipment, the carrier allocates significant assets, including a driver, truck, and trailer. These assets incur costs such as driver wages, fuel consumption, and equipment depreciation, even if the truck’s wheels are not turning with a load. An idle truck represents lost potential income for a transportation company, as trailers are typically scheduled to be in constant motion.
The economic rationale behind these charges stems from the trucking industry’s operational model, where profitability is closely tied to continuous movement and efficient use of resources. Carriers invest time and effort into planning routes and preparing equipment for pending orders. A cancellation or an unavailable load means a disruption to their carefully planned schedule and a missed opportunity to haul other freight, impacting their revenue stream.
A frequent scenario involves last-minute shipment cancellations by the shipper or broker after the truck has already been dispatched. This can occur due to unforeseen changes in shipping needs, production problems, or last-minute adjustments to the supply chain. Another common trigger is when a driver arrives at the pickup location, only to find the load not ready for transport or the customer unavailable.
Incorrect freight information, such as ordering the wrong type of equipment for the load, can also result in a TONU fee if the carrier cannot perform the service. Manufacturing or construction site delays, where the product is not ready as scheduled, frequently lead to these charges. TONU charges are invoked if a cancellation occurs on the day of the scheduled pickup or within a predetermined window, which can range from four to twenty-four hours before the pickup time.
The monetary value of a TONU charge is not static and can fluctuate based on several contributing factors. The distance the truck traveled to the pickup location significantly influences the charge, as it directly relates to fuel costs and driver time. A truck that has traveled a considerable distance before cancellation will incur a higher TONU fee than one canceled before leaving the carrier’s yard.
The type of equipment involved also plays a role in determining the charge. Specialized trailers, such as those for over-dimensional or overweight shipments, command higher TONU fees due to their increased operational costs and limited availability. Furthermore, the specific policies of the trucking carrier and the terms outlined in the initial freight agreement are important. These contractual terms dictate the conditions under which a TONU fee is applied and its potential amount, making it important to review agreements carefully.
TONU fees for standard equipment, such as dry vans or box trucks, fall within a range of $150 to $300 per occurrence. The industry average for a standard TONU fee is cited around $250.
For specialized equipment, including refrigerated (reefer) units or trailers for over-dimensional freight, TONU fees are higher, starting at $500 or more. The increased cost reflects the greater operational expenses and the specialized nature of these assets. The final TONU fee is also influenced by the level of inconvenience caused, meaning a cancellation when a truck is already on-site will be more costly than one made before dispatch.