What are Stop-Off Charges?
Delivering consignments to multiple locations by truck can be a complex undertaking. This task often requires a lot of planning, in order to avoid multiple individual trips and instead take advantage of multi-stop deliveries.
Stop-Off Charges, also referred to as Stop-Off Fees, are additional costs for arranging multi-stop truckloads, when consignments are delivered to two or more locations in a single trip. This is often significantly more cost-effective than arranging two or more separate truck trips.
In this article, we’ll be taking a detailed look at why stop-off charges are billed, who has to shoulder these fees and how much it costs. We’ll also provide an example of a stop-off invoice, as well as a case study for better understanding.
Why Are Multiple Stop-Offs Chargeable?
Truck deliveries that go from Point A to Point B are also called direct deliveries. The advantages of this arrangement is that it’s the fastest and most direct route to deliver cargo from a seller to a buyer.
On the other hand, it’s an inefficient way to deliver goods to multiple locations, as many single-trip deliveries require multiple trucks or a single truck doing multiple individual trips.
This is where multi-stop deliveries come in. Having multiple stop-off locations enables a single truck to do multiple deliveries in a simple trip. This is often a more cost effective route to deliver cargo to multiple locations.
In order to achieve this, routes would have to be planned carefully. All drop off-locations are then coordinate according to route plan, so that consignments get delivered in the most cost effective-way.
For the planning activities, as well as the additional time and distance the truck has to cover for the additional stop-off, trucking companies will have to charge a stop-off fee. Even though a stop-off fee is charged, it’s a lot more affordable than multiple individual trips via multiple trucks.
Who Pays for Stop-Off Charges?
The party paying for stop-off charges is usually the person or business who requests the delivery, which is most commonly the seller. If the buyer is responsible for the delivery, they would most typically arrange the delivery to only one location.
If a multi-stop delivery is required, the trucker would send an invoice to the buyer with a full breakdown of where each cargo was delivered to with the total number of stop-offs.
How Much Are Stop-Off Charges?
Stop-off charges range between $80 to $150.00 for each additional drop-off location. The additional stop-off fees are generally charged on top of the initial delivery costs.
Take note that the exact stop-off charges depend on the number of additional delivery locations, distance between them, type of truck, the trucking company rendering the services, among various other factors.
Therefore, it’s always best to get an accurate quote beforehand, when working with transport or delivery companies.
How Are Stop-Off Charges Invoiced?
Stop-off charges are usually found on the same invoice that is issued for the delivery. It will be a separate line item that shows the additional stop-off locations with the respective fees.
Here is an example of how a trucking or delivery company would present its invoice with a stop-off charge:
|Delivery (Houston to San Antonio)||$350.00|
|Stop-Off Charges (Austin)||$95.00|
In What Scenarios Are Stop-Offs Suitable?
Requesting a multi-stop delivery may not be suitable for all types of sellers. It usually depends on various factors, which we will take a closer look at in this section.
- Multiple Consignees – Stop-offs are ideal when there are multiple consignees with nearby or en route delivery locations. A single truck trip with multiple drop-off locations is more cost effective compared to individual truck trips.
- Different Warehouses – Stop-offs are also common for deliveries to multiple warehouses. E-commerce companies or retailers may have different consolidation or distribution warehouses that require goods from the same shipper or production site.
- Grouping Deliveries – A trucker may also practice multi-stop deliveries in order to save fuel and resources. In this scenario, stop-off locations are based on the delivery plan. This is also common for peak season deliveries, where trucks have their routes planned and assigned beforehand.
Stop-Off Case Study
In this case study, a manufacturer of commercial printers that is based in Los Angeles has two consignments for two different customers that need to be delivered to San Francisco and San Jose.
The manufacturer has instructed their trucker to deliver both commercial printers in a single tip. The trucker loads both printers into the truck and delivers one of the commercial printers to the customer in San Francisco and the other to San Jose.
As the manufacturer has opted for a multi-stop delivery, the trucking company will charge them for the delivery to San Francisco and an additional Stop-Off Charge for the extra delivery location in San Jose.
Co-Founder & Writer
About the Author
Andrew is a multi-business owner with over 10 years of experience in the fields of logistics, manufacturing, operations, training, and education.
Being the co-founder of freightcourse has given him the ability to pursue his desire of educating others on manufacturing and supply chain topics.