Shipping can be expensive, and as a result, it’s important to avoid any unnecessary charges. One potential charge that you may not be aware of is “TONU.” RPM is here to tell you everything you need to know about this charge and how you can save money on your shipments by avoiding this (and other) charges:
What Is Truck Order Not Used (TONU)?
Truck Order Not Used or TONU occurs when…
- The shipment is canceled last-minute
- The driver arrives for pick-up, but the customer and/or goods aren’t available
- The wrong equipment or truck is ordered
What Is a TONU Charge?
Many trucking companies charge customers for TONU to help recoup some of their costs. The exact amount of a TONU charge varies by company, so it’s essential to check your contract and be aware of this amount ahead of time.
Generally speaking, you can expect to pay a TONU charge of around $150 for a dry van or a box truck. Additionally, you can expect to pay a TONU charge of around $300 for a reefer or other specialized equipment.
If you cancel a shipment at the last minute or miss a shipment, you can usually expect to receive a TONU charge very quickly — within a matter of hours. You need to be prepared to pay your TONU charge within the allotted time frame to avoid additional fees.
Why Do You Have To Pay a TONU Charge?
Paying a TONU charge might seem unnecessary, but these charges exist for a reason. TONU charges are designed to help companies recoup some of the costs they lose when a shipment is canceled or missed.
Truck drivers and routes are assigned in advance, so when you cancel an order at the last minute, you’re affecting the route and causing the company to lose out on money that they could have earned by picking up another shipment.
Furthermore, when you miss a pick-up, or your goods aren’t available at the time of pick-up, you’re essentially wasting the driver’s time, which could have a snowball effect and make them late for the rest of the pick-ups on their route. You’re also paying for the gas wasted along the way, which isn’t cheap these days.
How Can You Pay a TONU Charge?
You pay a TONU charge based on the terms and conditions in your freight contract. However, most freight companies will create an invoice with the TONU charge and send it to the customer for payment. From there, you can either choose to pay the TONU charge by credit card, check, etc.
How Can You Avoid TONU Charges?
The good news is that it’s entirely possible for you to avoid TONU charges when shipping goods.
Here are some tips to help you avoid these charges and save money:
- Plan Ahead: To avoid a TONU charge that occurs due to a missed order, proper planning is required. Make sure that everyone on your team is on the same page in regards to the delivery time, date, and location so that the goods are ready for pick-up and someone is available to meet the driver upon arrival.
- Communicate: Communication is another key component to avoiding a TONU charge and ensuring a successful pick-up process. For starters, you need to communicate with the trucking company if your plans or needs change at any point. You also need to communicate with your team regarding updated arrival times or order changes.
- Know Your Contract: You also need to know when the trucking company charges TONU and how much the charges are. You can find all of this information within your contract. If you have any questions about your contract in general or TONU charges specifically, reach out to your point of contact for assistance.
- Establish Relationships: Having a good working relationship with your trucking company may also help you avoid TONU charges. When both sides are familiar with each other, both sides are more likely to keep up their end of the bargain.
Is TONU Different From Truck Detention?
Truck detention is another charge that’s often confused with TONU; however, these charges result from different things. As you now know, TONU is charged for a canceled order or an order that’s not able to be completed on the customer’s side. Truck detention, on the other hand, is charged for idling time that goes beyond the amount specified in the contract.
For example, most trucking contracts allot for around two hours or idling time for loading and unloading the truck. If the truck remains idle for longer than the specified period of time due to the fault of the customer, then the customer may incur truck detention charges.
Truck detention charges are usually by the hour, and you should check your contract for more information about your specific time limit and charge amount.
How Does RPM Handle TONU Issues?
RPM is a top logistics provider in vehicle and freight transportation that handles thousands of shipments per day. RPM boasts a 98% on-time delivery rate and may have to charge for TONU issues to help maintain this rate and meet the expectations of our customers.
For more information on how RPM handles TONU issues, let’s take a look at RPM’s standard terms and conditions for the broker-shipper relationship:
- RPM agrees to arrange for the pick-up, transport, and delivery of shipments but is not responsible for packaging, handling, or loading of shipments, which, instead, is the responsibility of the shipper.
- Additionally, the motor carriers used by RPM are required to perform timely and reliable pick-up and delivery of all shipments in accordance with reasonable schedules that are communicated in writing by the shipper to the broker.
- Furthermore, RPM will provide the shipper with prompt notification by telephone or electronic communication in the event that they cannot meet the obligation to transport an agreed-upon shipment.
- Finally, RPM will communicate any delivery schedule requested by the shipper to each motor carrier it engages to transport any particular shipment of shipper.
What To Do Next?
For more information on how RPM handles TONU issues or for additional questions about RPM’s standard contract, reach out to the team today. Or, if you’re ready to get started, reach out for a quick quote.
Sources:
What Is a Truck Ordered Not Used (TONU) Charge? | Freight Course
5 Tips for Reading a Business Contract | The Balance Small Business
10 Things to Know About Truck Driver Detention | Supply Chain 24/7
