Charge-back items

Definition

Costs a carrier pays first and then deducts from a contract driver's settlement.

Why It Matters

Federal leasing rule requires a lease to specify every one of them and how each is computed, which is the tell for reading a route's real cost. Contractor pay reported net of chargebacks understates what the labor actually costs, so an earnings multiple gets applied to a number that was never earned. Ask for settlement statements instead of a summary line, and rebuild the cost per stop from them before pricing anything.