Bobtail Fee
Definition of bobtail fee
A bobtail fee is a charge applied to truckers or transportation companies for operating a truck without its trailer.
This situation, known as "bobtailing," typically occurs when a truck is driven without a trailer attached, either after dropping off a load or while moving to pick up a new one.
Why are bobtail fees charged?
Bobtail fees are charged to cover the operational costs incurred by running a truck without a trailer. These costs include fuel, wear and tear, and driver wages, which do not generate direct revenue during these non-load-bearing movements.
When are bobtail fees incurred?
A bobtail fee is incurred when a truck driver operates the tractor without a trailer attached. Relevant scenarios include after a delivery when the truck is moving to another location to pick up a new load, repositioning for maintenance, or for other logistical purposes.
How are bobtail fees calculated?
The bobtail fee is calculated based on the distance travelled without a trailer and the operational costs involved, such as fuel consumption, wear and tear, and the driver's time.
However, rates vary depending on the trucking company's policies and contractual agreements.
What are the benefits of bobtail fees?
Bobtail fees help trucking companies cover the costs of non-revenue-generating trips. By compensating for fuel, maintenance, and driver expenses, these fees help maintain profitability even during empty runs.
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