Did someone say detention time?

To avoid paying a cost that can be avoided, it is necessary to first comprehend why detention exists.

Detention occurs when a carrier arrives at their scheduled pick-up or delivery time, but the shipment is not yet ready, forcing the driver to wait hours to be loaded. On average, shippers receive two hours of free detention during pickup and delivery. This means that a shipper has up to two hours to load or unload a shipment, and vice versa.

Why does detention exist?

Carriers are always on a schedule, which means that they typically pre-plan their routes, so that when they arrive at a delivery, their next route is already prepared, and this two-hour window is always included. In addition, the carrier must wait for a shipment to be loaded or unloaded, which consumes their time and costs them money. If the wheels do not turn, no money is made. In some instances, reefer trailers would need to keep their truck running to prevent perishable goods from spoiling, resulting in increased fuel consumption. There are a few other factors involved, but these are the primary causes of detention.

How much is detention?

After 2 hours, detention begins, and the standard hourly rate ranges from $35 to $50. If a carrier’s rates are higher. Please navigate them to this article.

Let talks preventions!

As the saying goes, “an unnecessary expense is one worth avoiding.” So, how can a shipper avoid being charged? The first rule of thumb is to maintain an organized dock and implement a penalty system for tardy drivers. If a driver is late, causing your dock schedule to back up, you should be able to charge carriers for late fees. We say this because, if a carrier is late, you can charge them up to $50 per hour in late fees to cover any detention for the following truck, should detention occur. This may seem obvious and common sense, but we have observed that 70% of shippers do not follow this rule. Creating a penalty system for late trucks will prevent you from incurring any unnecessary detention fees, as your late truck will cover the costs.

We view detention as an unnecessary expenses, and Five TMS AI is an excellent tool for avoiding detention on behalf of your staff. Five TMS systems enable shippers to live gps track their shipments and even provide an estimated time of arrival and delivery. Using these precise ETAs will allow you to better prepare your dock space. Instead of using manual input or even a carrier’s manual ETA input, which we all know is never accurate, use an automated system. As you are aware of the exact timing of each shipment, Five TMS AI Track and trace can keep the dock in a very tight schedule, allowing you to better organize freight and even give your team some free time, if possible. Five TMS AI provides accurate ETA information from the driver by using mobile location services to track arrival times. Understanding whether the driver is 10 minutes late or 10 minutes early provides a clearer picture of what you can and cannot do to improve your preparation materials. Keep in mind that detention is an extremely unnecessary expense, and this is just one of the ways in which Five TMS is developing a cost-saving and innovative platform to help manufacturers streamline their operations.