There are no forced loads. It is a lot of work and reputation that goes into the procurement of customers and loads. When a load is cancelled the work the Carrier performed is wasted. If cancelled late, the reputation of the carrier and its ability to get more loads is damaged. For example, Amazon posts performance. One late load shuts off part of their load board.
Once the driver, fleet manager, or owner operator accepts the load (over the phone, by email or text) , then JM Logistics, accepts the load from the customer as the Motor Carrier. At this point the contract is locked and penalties apply if cancelled.
If the owner operator, driver or fleet owner cancels the load within 15 minutes of the acceptance call. No penalty is assessed. However, the driver, independent operator, or fleet manager has lost its place in the dispatch queue. It may be several hours or the better part of a day before a new dispatch is offered.
If the owner operator, fleet manager or driver cancels the load less than 24 hours on weekdays, and 48 hours on weekends from the pick time, the automatic penalty is 50% of the load value up to $500. Plus the extra expenses (if any) that the carrier incurred to complete the load anyway.
If the owner operator cancels within four hours before the pick, the automatic penalty is 100% of the load value, up to $1,000. Plus the extra expenses (if any) that the carrier incurred to complete the load anyway.
Being late causes all kinds of problems – the receiver, the shipper, the customer, the broker, the next loads, hours of service and more are all effected.
If the load is late for a non-preventable reason, and the communication is frequent and as soon as possible, there is no penalty for being late. Sometimes Dispatch, Broker or Customer makes errors. and other causes that are a foreseeable act of God, then no penalties are incurred. If it is an error on the part of dispatch, broker, or customer, receiving facility; there is no penalty assessed.
If the load is late for a preventable reason (mechanical failure, not waking up on time, not calculating the route, not compensating for traffic, or weather, checking the address ahead of time for map-ability, on the BOL.
The penalties for being late vary. At a minimum, there is a discussion and a notation on the weekly driving report. If warrantied at the Carrier’s sole discretion fees apply. Note that the customers charge the carrier for late delivery with an average fee of $250 and or 15% of the load.
The penalties from the carrier (at the carriers sole discretion) range from no dollars to the amount of the load for late delivery depending on the carriers assessment of the egregiousness of the late delivery and the history of the driver for late deliveries. If the customer is lost or the carrier is put on a “time out” period, there may be additional fees.