When it comes to the transportation & shipping industry, there are a variety of internal and external factors that can ultimately affect your bottom line. Aside from other factors such as bankruptcy, and non-payment, there are a few additional factors that can hold up shipments & cash flow. This blog will highlight Truck Detention & also touch briefly on Trucking Layovers to provide a better idea of what each is, how to avoid them, and how it affects your business.
Truck Detention: What is it?
Truck detention is the process that involves the loading/unloading of cargo from point A to Point B. Generally, a driver is granted a 2-hour window when it comes to picking up/dropping off cargo, but there are a variety of factors that can get in the way of this process. Since drivers are only given a set period of legal driving hours this can cause them to run out of time, delaying any future deliveries, which can delay future pickups, and when there are delays, profit takes a hit! Normal detention time is charged at a rate of 75.00 an hour. A carriers detention charges should be provided in their rules tariff which should be available on its website and available in each of its trucks in case a shipper requests a copy of it.
A trucking layover is exactly what the name suggests, it is a situation where a driver is held up by a shipper or receiver for more time than is allotted. If a trucker is held up at a specific location for too long, they are designated a layover pay that is either facilitated by the trucking company itself, or the shipper/receiver.
How to Reduce Truck Detention & Associated Costs
There are a variety of tactics that can be implemented to help reduce Truck Detention. However, there is no fool proof way to remove it entirely as there are simply far too many exterior factors, some examples might be product delays, late deliveries from earlier shippers, bad communication, and general issues in the supply chain. Learn more about cutting down on Truck Detention Fees by following these tips:
- Have goods ready to ship & load before scheduled truck arrives
- Provide clear instructions on timelines for loading goods & equipment into trucks
- Create a gap in shipments/deliveries to provide wiggle room if there is an issue or snag
- Hire more staff to reduce the need for Detention Fees
- Provide staff with necessary equipment to expedite loading/unloading process
Why Choose AWA for Your Transportation Collection Needs?
AWA operates on a contingency fee basis, meaning, if we cannot collect, you owe us nothing. If collection efforts are successful, our rates will be based on how old and how much the debt is, if there is a damage claim, and whether the debtor is in or out of business. If you have unpaid freight invoices and are not sure what to do next, call 662-892-8591 to speak with one of AWA’s client specialists today or Contact Us Directly!
For more information on our agency practices and methods, view our AWA Collection Process Page.