Understanding Freight Contracts: Key Terms Every Owner-Operator Should Know

In the bustling world of the trucking industry, understanding freight contracts is crucial for owner-operators who are looking to safeguard their earnings. These contracts can often be filled with complex terminology that, if misunderstood, could impact your profitability. Here, we decode some of the most common freight contract terms, equipping you with the knowledge needed to make informed decisions while running under the authority of RIDEWAY Express.

Common Freight Contract Terms Explained

Bill of Lading (BOL): This is a legal document issued by the carrier to the shipper, detailing the type, quantity, and destination of the goods being carried. As an owner-operator, ensure the BOL accurately reflects the shipment details to avoid disputes.

Freight Class: This term categorizes shipments based on factors like weight, dimensions, density, and value. Understanding the correct freight class is essential to avoid unexpected charges or disputes.

Accessorial Charges: These are additional fees for services beyond the standard freight haul, such as loading/unloading, detention, or liftgate services. Knowing these can help you negotiate better terms and manage your expenses effectively.

Detention Time: This refers to the time a driver is delayed at the shipper or consignee. Contracts should clearly define allowable detention times and the compensation for delays, ensuring your time and effort are valued.

Layover Pay: If a shipment is delayed beyond the scheduled delivery, layover pay compensates the driver for the time spent waiting. Be sure this is included in your contract to protect against lost income.

Protecting Your Earnings

As an owner-operator running under the authority of RIDEWAY Express, understanding these terms can help you protect your earnings and ensure smooth operations. Here are a few strategies to keep in mind:

Negotiate Wisely: Armed with the knowledge of contract terms, negotiate more favorable conditions and avoid unexpected fees that could eat into your profits.

Verify Details: Always double-check the details in your contracts, especially those related to freight class and accessorial charges, to prevent costly errors.

Maintain Records: Keep detailed records of all contracts and communications. This will be invaluable in resolving disputes quickly and efficiently.

Join RIDEWAY Express for Success

At RIDEWAY Express, we provide the support and resources you need to navigate the complexities of freight contracts. Our team is dedicated to helping you succeed as an owner-operator, ensuring that you can focus on what you do best—driving and maximizing your income.

For more information on how to join RIDEWAY Express, visit our website at ridewayexpress.com, contact us at 1-866-760-3620, or email us at info@ridewayexpress.com.