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Have You Heard of This Payout Method?

Have You Heard of This Payout Method?

Some loads are paid by the mile; some by the number of pieces being shipped, some with a flat rate; however, many other loads are shipped and paid by weight.

When a load is paid by weight, it’s usually called “100 weight” or “cwt”. Or it could be called “Fifty weight”.

Let me explain …

Loads being paid by the “100 weight” are “bulk” loads. That is the cargo is loaded to the legal max. A lighter-weight truck can load more product than a heavier-weight truck. It’s up to the driver to make sure he is not going to run overweight

So, let’s say they load a reefer with 43,000 lbs of bulk potatoes. The truck then makes delivery and weighs out. If 43,000 lbs of cargo are delivered, the driver gets a “weigh ticket” indicating the gross and net weight delivered.

The driver then gets paid by the broker on the net weight at whatever rate per hundred weight is delivered.

Here’s an example: 43,000 / 100 = 430 x $5.75 = $2,472.50.

If this load was paid by Fifty weight, you’d divide the 43,000 by 50 and the rate would generally be higher.

The shipper determines HOW they will make payout; the broker (and carrier) are mainly concerned only with the final margin or dollar amount respectively.

There’s a lot more to be said on this type of payout and on the entire process of negotiating rates as well.

Call or email me if you want to get started.


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