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    You are at:Home»News»The Types of Truck Delivery Payments You Should Know about

    The Types of Truck Delivery Payments You Should Know about

    RockyBy RockyDecember 31, 2021No Comments3 Mins Read
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    Freight forwarding services are extremely popular these days. It’s impossible to imagine modern businesses without constant shipments and deliveries. Logistics is not only a complex process but finance-consuming. No matter whether you decide to become a freight broker or launch your own business, you should know everything about possible payments or expenses and their peculiarities.

    Hourly Pay

    Perhaps, it’s one of the most favorite payment types among drivers. Shippers do not like it so much. It’s applied when it comes to interstate shipments up to 150 miles. Often, it’s necessary to transport parcels within one city – from a warehouse to the final consumer or operator. It should be noticed that the payment often implies that drivers are to participate in downloading or uploading processes. More often, hourly pay is used with LTL deliveries.

    Per Mile Model

    It’s one of the most popular and widespread types of financing within the logistics industry. By the way, there are different types of miles you have to pay compensation. They may be practical, HHG (or household good), and hub.

    Per Diem

    It’s a popular tax-free type of payment. This variant implies the company (a shipper) reimburses meal and incidental costs. Thanks to this, drivers are usually to accept a lower base salary. If you are willing to apply the option, you should carefully study the existing legislation and regulations.

    Percentage of the Load

    The name speaks for itself – the logistics agencies are to obtain some percentages negotiated upon the cargo value. It’s an ideal solution for carriers when it comes to shipping valuable items. At the same, such a model is not profitable when it’s necessary to deliver low-cost freight for the long haul.

    Stop Pay

    Sometimes it’s necessary to ship multiple parcels. It’s a common situation when it comes to LTL freight. The number of stops may be endless. Some companies pay drives extra fees to compensate such stops.

    Detention Payment

    It implies getting extra costs for using equipment beyond the given free time, typically outside of the terminal. Detention is charged when the carrier’s equipment is still in use by the shipper. It does not matter whether the container is full or empty.

    Accessorial Expenses

    This category may include various types of remuneration the drivers get for other services except of driving. There are copious associated options the carriers may provide to shippers. They may include the use of a forklift or pallets, after-delivery services, etc.

    Fuel and Safety Bonuses

    Nowadays the use of “green” energy is a popular trend. If carriers utilize eco-friendly types of fuel and reduce costs, the logistics agencies may provide drivers with extra bonuses truck agent.

    If you are interested in the freight delivery service, it’s necessary to pick up a logistics broker carefully. It’s better to prefer reliable and experienced specialists. They are to provide you with the most profitable and effective solutions for your business. At the same time, if your goal is to be a cool broker, your prime task is to learn everything about each of the above-mentioned pay models in detail.

    To sum it up, it should be highlighted that you should always pay special attention to financial issues if you do not want to lose profits. It’s up to you to pick up the most suitable solution for remuneration.

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