Dreaded Detention – it's one of the biggest burdens a driver will face and most of the time at no fault of their own. A difficult aspect of detention is getting paid for it. In this article, we will discuss the standard process when detention occurs and how a driver can be compensated for it.
What is detention?
Detention charges apply when the driver is delayed beyond a reasonable waiting time for loading, unloading, or other related activities at a customer's designated facility (shipper, receiver). A commonly accepted time window of “free time” is two hours. A driver that is held up at a specific location beyond this two-hour window, or what is accepted as reasonable and customary, is considered detention. These detention accessorial charges compensate for the driver’s time and lost opportunity to take on additional loads and miles. Detention can result from many things including poor scheduling, lack of communication, missing or incomplete documents (e.g., BOL), or inadequate staffing, or faulty equipment at the shipping or receiving locations can lead to delays.
Why is detention such a bad thing?
Drivers lose out on productive time and revenue generation when they are held up at a shipper or receiver. Detention not only delays the current load but can also affect subsequent loads, causing a negative domino effect on the trucking business’ revenue. This could damage the reputation of the driver, the trucking business, and its brand. The business could receive poor service ratings on load boards, industry forums, and social media. This could spiral into missed or delayed cash flow and an inability to make timely payments on their bills. In many cases, trucking businesses bear the burden of detention without being compensated for their time.
In other words, detention is something to be avoided at all costs, but unfortunately, sometimes it is unavoidable.
What does detention look like?
Let's look at an example of a driver who experiences detention at delivery.
8:00 AM: John Smith arrives at ABC Distribution Center for delivery as scheduled.
8:15 AM: John checks in with the receiving clerk and submits the required paperwork for unloading.
8:30 AM: John is directed to back his truck into a designated dock for unloading.
9:00 AM: John completes the check-in process and is informed that the unloading process will begin shortly.
9:30 AM: Despite waiting for half an hour, there is no activity at the dock, and John remains in his truck.
10:00 AM: John contacts his dispatcher at Trucking Transport to inform them of the delay and request assistance.
10:15 AM: Dispatcher advises John to continue waiting and assures him that detention pay will be requested for the delay.
10:30 AM: John decides to approach the receiving clerk again to inquire about the status of the unloading process.
11:00 AM: Receiving clerk informs John that there is a backlog of shipments and that it may take several more hours before his truck can be unloaded.
11:30 AM: John notifies his dispatcher of the extended delay and provides an update on the situation.
2:00 PM: Dispatcher contacts John to confirm the details of the detention incident and advises him to document the delay with timestamps and photos.
3:00 PM: John continues to wait patiently, periodically checking in with the receiving clerk for updates.
4:00 PM: Finally, after eight hours of waiting, John's truck is unloaded, and he receives confirmation from the receiving clerk that he can leave the facility after getting a signed Bill of Lading with time stamps included.
4:30 PM: John updates his dispatcher on the resolution of the detention incident and confirms that he will submit the necessary documentation for detention pay.
How much is the typical detention charge?
Detention charges can range from $25 to $100 per hour depending on the shipper or receiver's contract terms or what they are willing to pay. When working with a freight broker, the carrier will charge the freight broker detention who will then charge the shipper/receiver. Brokers are technically not responsible for detention charges unless the detention is somehow their fault. It is common for brokers to relay to the shipper or receiver that the carrier will be charging for detention, and payment for detention will typically come through the broker when paying a carrier for the load. Some brokers will pay out detention if the shipper/receiver refuses to pay as a sign of goodwill, but this is not always the case.
How do I get paid for detention?
Documentation and communication are going to be your biggest allies in requesting compensation for detention. A clear, well-defined, and documented detention process with a broker or shipper should be worked out ahead of time.
Here are a few tips to increase the chances of getting paid detention:
Document Everything. Be sure to document the exact time you arrived at the shipper or receiver location. Document the time when loading or unloading begins and ends.
Get the time stamps written and signed for on the bill of lading (BOL) and be sure to have a copy of the BOL.
Read the shipper or freight broker contract to understand their detention policy. Follow their instructions for time stamps, communication, calculations, and pay rates.
Communicate, communicate, communicate. When it is getting close to the end of the free 2 hour window, start communicating to the dispatcher, freight broker, and other relevant parties that you are likely going to be detained for more than 2 hours. Communicating this before your 2 hour window closes may help expedite the process and act as a record for your detention case.
Submit all the required documentation to the appropriate party as soon as possible. The longer you wait to submit the documentation, the less likely you will be compensated. This typically includes signed bill of lading with time stamps (arrival, start and end of load/unload) and the invoice with detention charges.
Be sure to follow up with the party who is responsible for paying you the detention charge.
Detention can happen and will happen to most drivers. Drivers need to advocate for themselves in situations where detention occurs. By communicating and documenting their detention experience, the likelihood of being compensated greatly increases.
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Soshaul Logistics LLC and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. It is meant to serve as a guide and information only and Soshaul Logistics, LLC does not assume responsibility for any omissions, errors, or ambiguity contained herein. Contents may not be relied upon as a substitute for the FMCSA's published regulations. You should consult your own tax, legal and accounting advisors before engaging in any transaction or operation.