4 Trimble Transportation Bid Don’t Bet Generally, if you like a shipper’s terms, a longer contract is nothing but good news. A longer period implies an opportunity for stable revenue for maybe even years to come. A nuance worth considering, however, is the contract’s addendums. To get the most out of any contract, it is valuable to be able to review, analyze and adjust the rates within the contract at least once a year. Shippers vary in their stipulated payment terms. In most contracts, the shipper promises to pay within 30 days of receiving the invoice - but this period can vary in length from as little as 15 days to as much as 90. It’s important to remember that the contract isn’t money in itself, so to speak. If your business is trying to pay its bills in the coming weeks, and a shipper won’t pay until two months down the road, you should factor that into your rate. In this case, you are essentially giving the shipper a loan. The standard insurance requirement usually limits the carrier’s liability to $100,000 per shipment. Should a shipper require insurance beyond this point, you should at the very least increase your rate in order to account for the increased exposure to risk on your part. When determining how to adjust the rate, consider the expected volume you will be carrying for that shipper, and make sure this increase covers the higher liability. That way, if a shipper were to make a claim, you will have enough collected at this premium rate to cover the liability payment. Both of these concepts should reflect how valuable a driver’s time is. Once the driver is on the clock, you can’t stop that clock according to the current hours of service (HOS) rules. The contract should contain stipulations about stoppage and delays, which cost you money but can be accounted for in the rate paid by the carrier. Additionally, pay attention to your route history and do some research - make sure that the stop pay schedule is realistic. Contract Duration Payment Terms Cargo Liability Power Detention and Stop Pay Destination City: Seattle Carrier Miles: 1189 Trimble Transportation Bid Don’t Bet Bid Flat Rate: 6663 Bid Volume: 520