Bobtail Fee

A bobtail fee (also known as a drop fee) is a charge assessed by trucking companies for dropping off a full container at a warehouse and returning later to pick up the empty container. This service provides flexibility in unloading time compared to live unloads. Understanding these fees is crucial for managing transportation costs and warehouse operations.

A bobtail fee, also called a drop fee, is charged when a trucker drops off a full container at a warehouse and returns later to collect it once it's empty. This service allows warehouses to unload containers at their own pace, rather than requiring immediate unloading as with a live unload. The term "bobtail" itself refers to a truck tractor traveling without a trailer or container.

Bobtail Fee vs. Live Unload

Understanding your delivery options:

  • Bobtail/Drop Service:
    • Container is dropped at the warehouse
    • Facility unloads at their convenience
    • Trucker returns later for empty container
    • More flexible for warehouse operations
    • Requires space to store container
  • Live Unload:
    • Driver waits while container is unloaded
    • Container leaves with driver
    • Usually faster turnaround for equipment
    • No container storage needed
    • May incur detention charges if unloading exceeds free time

Cost Considerations

When deciding between drop service and live unload:

  • Compare bobtail fees against potential detention charges
  • Consider warehouse labor availability
  • Evaluate container storage space
  • Account for equipment availability
  • Factor in facility operating hours

Analyze your unloading capabilities, space availability, and labor resources to determine whether paying a bobtail fee for drop service is more cost-effective than performing live unloads. Consider peak receiving periods and staff availability when making this decision.

Updated on

Learn More

Related Glossary Terms

Let's Solve Your Supply Chain Problems

Our experts are here to discuss your unique challenges and help you navigate the complexities of modern supply chains. Connect with us today to explore how we can support your business’s success.