TONU (Truck Ordered Not Used)

Short Description

TONU stands for "Truck Ordered Not Used." It is a charge that a shipper or broker may incur when a truck is dispatched for a load but the load is canceled or the truck is not used as planned. The charge compensates the carrier for their time and expenses incurred due to the canceled load.

Key Takeaways

  • Compensation for Cancellation: Provides compensation to carriers for expenses incurred when a load is canceled or not used.
  • Pre-Load Agreement: Typically specified in the terms of the transportation agreement or contract.
  • Mitigates Losses: Helps cover the costs of wasted time and resources for the carrier.

Tell Me More

TONU charges are an important aspect of transportation logistics, helping to ensure that carriers are compensated for situations where a planned load is canceled after the truck has been dispatched. This charge is negotiated and agreed upon in advance between the shipper and the carrier to mitigate potential financial losses for both parties.

Real-World Applications:

  1. Load Cancellation: If a shipper cancels a load after a truck has been dispatched, the TONU charge compensates the carrier for their time and costs.
  2. Brokerage Agreements: Freight brokers may include TONU clauses in their contracts to protect against losses when a truck is ordered but the load is not utilized.
  3. Operational Planning: Understanding and managing TONU charges helps both shippers and carriers plan and budget more effectively, minimizing financial impact from unexpected cancellations.

TONU charges play a critical role in managing the financial aspects of transportation logistics, ensuring fair compensation for carriers in the event of load cancellations.

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