Who's tab is it?
- Thread starter Tennesseahawk
- Start date
Terry, we have an on-time-every-time policy also, and, there is a budget in place for towing, this budget has been deferred to our contractors. However, when they are not able to negotiate a tow the Company pays and collects later. With the additional revenue they see, this hasn't been a problem, because (knock on wood) it hasn't happened YET. Problem with Hawks question, as I see it, the solution was not defined to anyone, by anyone.
NoProblem
Expert Expediter
Col,
I had a meeting with another fleet owner this afternoon. They brought up the whole towing scenario. Before I could say anything, they assured me that they paid the tow bill to the consignee.
Again, these folks have been around many years and know the game.
Funny though - their main concern was not so much the cost of towing, as it was it's necessity - to which I whole heartedly agreed.
Towing is always a last resort and, as you pointed out, different situations call for different solutions.
But, according to them, some carriers will tow the truck and charge the owner regardless of the situation.
What I can say to all this is - low coolant is only a 5 minute delay - and a whole lot cheaper than any tow - if you carry a few extra gallons of coolant on the truck with you.
I had a meeting with another fleet owner this afternoon. They brought up the whole towing scenario. Before I could say anything, they assured me that they paid the tow bill to the consignee.
Again, these folks have been around many years and know the game.
Funny though - their main concern was not so much the cost of towing, as it was it's necessity - to which I whole heartedly agreed.
Towing is always a last resort and, as you pointed out, different situations call for different solutions.
But, according to them, some carriers will tow the truck and charge the owner regardless of the situation.
What I can say to all this is - low coolant is only a 5 minute delay - and a whole lot cheaper than any tow - if you carry a few extra gallons of coolant on the truck with you.
bigguy1001
Expert Expediter
I'm with those that say "every situation is different." The usual rule of thumb is if the owner pays they get paid the miles to delivery. If the company pays the miles stop at the point of breakdown. Usually if it's a breakdown the owner is responsible. If it's an hours of service issue often the company is responsible for failing to arrange a swap if they had been aware of the upcoming issue. Again, I get back to the "every situation is different" scenario. Over the years I have seen lots of loads swapped at repair facilities and even local swap docks when time will allow. Local availability is almost always the key. If there are trucks available, and they are willing to finish your load, a swap can be arranged. Often the tow all the way to the consignee becomes necessary because none of the guys you share a company with would come to your rescue.
Yep Bigguy. "Willing" tis a wunnerful word, ain't it?? I personnaly love the unwilling, you can't imagine the business available from the unwilling. Wunnerful ting you expediters got going. If I wanna, if it goes to the right place, if I feel ok, if it makes me the very large bucks, if it's no bother or no work, if it's not too hot or cold, I might. An everyone wants the big bucks???
Tennesseahawk
Veteran Expediter
Comes back to the question... what is your risk?
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I havn't read this whole thread so what I am going to say might be redundant. During my time with Roberts and FEDXCC we were towed twice. Fedex paid for the tow to the consignee. except for one occasion when the consignee was in NJ and the breakdown happened in MO. I was able to negoiate a tow to St Louis Freightliner and the freight was transfered there to another truck and the truck was then repaired by Freightliner.
I feel it is the responsibility of the carrier to get the freight in on time, as you might not have the bucks to pay for a $500 towing bill,then a repair. It may be a lot cheaper for you to pay to get towed to a repair shop vs the consignee.
I feel it is the responsibility of the carrier to get the freight in on time, as you might not have the bucks to pay for a $500 towing bill,then a repair. It may be a lot cheaper for you to pay to get towed to a repair shop vs the consignee.
Tennesseahawk
Veteran Expediter
Other options may be available, like they were in my case. Just that the freight wasn't going to be there exactly when promised. I doubt a 3-4 hour delay is going to be a customer killer in every case. I also believe it's an overreaction to call for an immediate tow to the consignee, especially on the contractor's dime when other options can be considered.
Rich... that's what I'm talking about as far as risk goes. To tell us "sorry about your engine, transmission, or whatever; but ya gotta pay a tow truck to Timbuktu as well", tells me the carrier has nothing vested other than reputation.
Guess you're right, Col. Can't make money on every load. BTW... nice dodge to my last question.
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Rich... that's what I'm talking about as far as risk goes. To tell us "sorry about your engine, transmission, or whatever; but ya gotta pay a tow truck to Timbuktu as well", tells me the carrier has nothing vested other than reputation.
Guess you're right, Col. Can't make money on every load. BTW... nice dodge to my last question.
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It's my understanding that Panther won't pay the tow to the consignee. Hopefully, I'll never break down, cause I'm with Panther. It might be my truck, but it's the carrier's freight to be delivered. They merely subcontracted me to deliver it for them. If I can't deliver it, for whatever reason, it's still up to them how they want to proceed with delivery. They can either tow it to the consignee, have it swapped to another truck, wait until I get my truck repaired, whatever they would like to do is fine by me.
However, at $.77 a mile, it's quite unreasonable to expect me to deliver the freight at any and all cost. In order for me to take that large of a risk, they have to make the risk worthy of the reward.
However, at $.77 a mile, it's quite unreasonable to expect me to deliver the freight at any and all cost. In order for me to take that large of a risk, they have to make the risk worthy of the reward.
It seem from reading this thread that the lines are clearly divided at the point where it depends on exactly how large a roast goose an individual expects to fly in their open face. My scenario is, if I had a contractor that had done the average 120K a year prior to having this type of difficulty, and, we had to have a discussion about "who's tab is it?", over a $500 towing bill, that Contractor and I would have a discussion about why I won't place anymore of "our" (the Contractors and Companys) customers valuable freight on their truck. End of my story.
I would agree with others in that it is a case by case situation. Over the years, we have had everything from the carrier covering the cost, to us covering the cost. Most of the time it depends on available trucks and how much time there is.
As a contractor, if we are paid the miles, then we should pay the tow. Alot of the time one can get the tow covered if it is under warranty. Had one this year that failed to start. Loose plug in the harness but Caterpillar paid the tow and repair.
Davekc
owner
23 years
PantherII
EO moderator
As a contractor, if we are paid the miles, then we should pay the tow. Alot of the time one can get the tow covered if it is under warranty. Had one this year that failed to start. Loose plug in the harness but Caterpillar paid the tow and repair.
Davekc
owner
23 years
PantherII
EO moderator
easyrider2697
Expert Expediter
According to my insurance policy, they will pay for the tow, my choice where my rig goes, because I can disconnect the trailer and the company can do whatever they want with the trailer.. I will say that I have had to be towed 2 times in the past year with panther and they have covered all the cost both times to come get trailer and then the next day when I got my hours back they paid me to go and get the trailer.. Thankfully it has always been an hours issue and not a truck issue, but if so, to my understanding thats why I have breakdown and towing insurance added to my policy, that 20 bux a month sure adds a lot of peace of mind.
arkjarhead
Veteran Expediter
talking about panther when i was runing for them a couple of years ago I ran out of hours on the way to a consignee due to a hazmat accident and a lond traffic jam i couldn't get around. when my hours were out panther told me to stop and they paid 400 dollars to have me towed 50 miles to the consignee. the funny thing about it was there was a team there and they both had they full hours going the same direction and one of the guys said he would do it for 50 buck. i ran that by the sup and he said it was a no go because that driver was just trying to make extra money. so they paid 400 instead of 50 because he didn't want it to go to a driver.
"...if I had a contractor that had done the average 120K a year prior to having this type of difficulty, and, we had to have a discussion about "who's tab is it?", over a $500 towing bill, that Contractor and I would have a discussion about why I won't place anymore of "our" (the Contractors and Companys) customers valuable freight on their truck."
Calling the freight "our customer's" freight, meaning a partnership between the company and the contractor, and then at the same time trying to lay all of the responsibility onto the contractor by using the contractor's past revenue, without bringing your own past revenue into the equation, is, at the very least, hypocritically ingenuous. It's not really a question of how large of a cooked goose, but rather a question of will the goose allow itself to be cooked by the gander. You make it sound like just because a contractor did 120K the past year that they now owe you something above and beyond for your charity, as if you didn't also profit quite handsomely from the same revenue stream, and quite likely with far less overhead. Why you would want to end an admitted profitable partnership with a good truck over a $500 towing bill is beyond me.
Calling the freight "our customer's" freight, meaning a partnership between the company and the contractor, and then at the same time trying to lay all of the responsibility onto the contractor by using the contractor's past revenue, without bringing your own past revenue into the equation, is, at the very least, hypocritically ingenuous. It's not really a question of how large of a cooked goose, but rather a question of will the goose allow itself to be cooked by the gander. You make it sound like just because a contractor did 120K the past year that they now owe you something above and beyond for your charity, as if you didn't also profit quite handsomely from the same revenue stream, and quite likely with far less overhead. Why you would want to end an admitted profitable partnership with a good truck over a $500 towing bill is beyond me.
Tennesseahawk
Veteran Expediter
Turtle, your wisdom is blinding me here! I wanted to say something similar, but all I could come up with was "blah blah blah old goat blah blah blah". :7
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Critter Truckin
Expert Expediter
Alright, as far as I figured (because I'm in constant contact with the situations that occur), the truck broke down ON THE WAY to the drop. That being said, if said carrier wants to get the shipment there AND on time, the need to at least foot part of the bill for towing. I understand that they didn't cause the truck to break down and that they aren't on the road with said driver(s). However, the bill to the dealership is on the driver and/or owner. Crap happens, and now it's just a question of who has to pay for the crap to get mopped off the floor.
PS-- Hawk, check out the new tag line. Thought you could appreciate this one.:7
PS-- Hawk, check out the new tag line. Thought you could appreciate this one.:7
I am with FDCC and this is what happened to me on the night of December 21, we were heading to a delivery when my engine blew I had on a PSS, SMS, cleared drivers and reefer load, try finding a truck to take over that load 3 days before Christmas. FDCC did try and they could not find any trucks in the area to cover the load and this HAD to be delivered ASAP. We were towed to the consignee 240 miles and then 240 miles back to or original location. The tow operator quoted the bill at $1250.00 to the delivery. FDCC issued a Comcheck TO the delivery and from there we were on our own. He towed us from a Cummins dealer to the delivery and then we made a deal with the him to bring us back and he gave us a great rate because he was coming back anyway. The consignee told us this was above and beyond what they expected. But all this said , FDCC told me they were contacting the consignee and were checking if they were willing to pay for the tow and they were so, although it seem as FDCC paid the bill it was just added onto the charge to the company.