When truck drivers are delayed at a shipping or receiving facility, they are owed detention pay. But what is detention pay for truck drivers? This guide explains trucking detention pay, how it is calculated, how freight brokers are involved, and how to reduce detention times.
What is detention pay for truck drivers?
Detention pay for truckers is an hourly fee paid to the driver by a shipper or receiver for the time the driver spends waiting at the shipping or receiving location. The waiting time is called “detention” and can result from paperwork processing, scheduling issues, or other delays. Detention pay will appear on an invoice as an accessorial charge on top of the standard shipping rate. The fee is paid by the party who delays the driver beyond the grace period agreed upon in the contract. The industry standard for the grace period is 2 hours, and any time beyond that must be compensated based on the amount specified in the contract.
Truck drivers do not want to be delayed at a shipping or receiving location. In fact, detention can interfere with other loads, raise the risks of security issues, and result in a loss of income. Detention pay ensures that truck drivers are compensated for the inconvenience. However, detention pay may not be enough to salvage the relationship. If a shipper or receiver regularly holds up a carrier, the carrier may choose to take their services elsewhere.
Calculating Detention Pay
The rate for detention pay must be included in the contract. To negotiate a fair fee, consider all operating costs, including fuel, tires, maintenance, permits, and salaries. The rates will vary from shipper to shipper, ranging from $25-100 per hour. However, this fee does not necessarily make up for the costs incurred by the delay.
What are the regulations around detention pay?
There are currently no regulations around detention pay. However, a bill was introduced in the House of Representatives in 2011, and the Federal Motor Carrier Safety Administration (FMCSA) has been conducting studies and creating reports on the topic for years. The FMCSA is currently working on a study to collect data on detention time, assess the effectiveness of Intelligent Transportation Systems (ITS) technology in measuring detention time, and determine strategies to reduce detention times.
How do freight brokers play a role in detention pay?
A freight broker is responsible for negotiating favorable contracts for both shippers and carriers. A freight broker is often the only point of contact between the shipper, receiver, and carrier. This means that freight brokers must stay updated with detention policies and rates, facilitate negotiations before the contract is signed, mitigate any disputes that may arise, and ensure the shipper and carrier receive fair compensation at the end of the contract.
9 Tips for Reducing Trucking Detention Time
No one stands to benefit from detention time. Carriers and brokers can both play a role in reducing trucking detention times and avoiding a costly hassle. Here are some tips to cut down on detention time:
- Communicate proactively and thoroughly. Ensure everyone understands the arrival times and that the dock is prepared for the truck’s arrival.
- Document all arrival and departure times thoroughly so that proper records exist should compensation be necessary.
- Schedule pick-ups and deliveries during off-peak times to avoid congestion and delays.
- Build flexibility into the shipping schedule to account for unanticipated delays.
- Use ITS technology to keep track of detention times, increase transparency, and improve efficiency.
- Cultivate solid and reliable relationships with everyone involved in the contract. Mutual respect and open communication will prevent detention times and smooth negotiations should any issues arise.
- Train drivers on detention policies and procedures to prepare them to take action should a detention occur.
- Ensure all necessary equipment and staff is readily available for loading and unloading freight.
- Work with a quality brokerage company with an extensive network of reliable shippers and skilled in negotiating fair rates.
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