Bobtail Fee

What is a Bobtail Fee?

A bobtail fee is an additional charge for trucks or freight vehicles driven without a trailer or cargo. This fee usually applies when the truck driver does not return with the trailer after unloading or needs to go to a location to load cargo without a trailer. The primary purpose of the bobtail fee is to compensate for the cost of operating the truck with no load, including fuel consumption, vehicle wear and tear, and the driver’s time cost.

How the Bobtail Fee is calculated

The Bobtail fee is usually calculated based on several factors, including distance traveled, time, fixed or variable rates, and additional services. The fee may be calculated based on the total mileage or time the truck is in motion and may include fuel prices, tolls, and other related costs. Some companies may use a fixed rate, while others may use a variable rate depending on the situation. In addition, additional services such as waiting time or special handling may also be factored into the fee.

Related FAQs

What is the difference between a Bobtail Fee and a Drop Fee?

A Bobtail Fee is the transportation fee for a truck without a trailer, while a Drop Fee is the fee incurred when the driver does not retrieve the container immediately after unloading.

When does a Bobtail Fee arise?

A Bobtail Fee arises when the truck driver moves the truck without a trailer, for example, after unloading and returning, going to the pick-up point, or scheduling a move.

How is the Bobtail Fee calculated?

It is usually based on mileage, time costs, and additional services. Some companies use a fixed rate, while others use a variable rate.

Why is the Bobtail Fee so important in logistics?

It covers the cost of non-revenue-generating transportation and ensures logistics companies remain profitable while operating efficiently.

Will the Bobtail Fee appear on the invoice?

Yes, the Bobtail Fee is usually listed as a destination or additional service fee and displayed on the invoice.