Unveiling the Payment Methods for Truck Owners – Load or by Mile

Most carriers are paid based on a fixed load price, whereas brokers are paid based on a fixed price, per mile, per job, or even an hourly charges as well.

In the trucking industry, the relationship between brokers and carriers is load specific. A rate confirmation order (Rate-Con) is used as a contract. Rate-Cons are often a fixed price contracts and include load delivery terms, similar to a purchase order.

Once the load is delivered, carriers send an invoice with proof of delivery and the Rate-Con. The fixed price helps brokers optimize the time and resources for load pay.

Calculating payment based on per mile can be cumbersome as the carrier can dispute it, claiming that a different truck route resulted in more miles and should be compensated accordingly.

To reduce confusion and disputes, many brokers offer a fixed pay with demurrage or TONU rates.

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