Trucking detention fees can mean serious losses for your trucking company. Trucking detention fees are a result of shippers being unable to follow through on their promises – not having shipments ready to be picked up or accepted upon delivery.
Every moment that a truck is parked at a loading dock means loss of potential income for the company. To discourage delays, shippers that delay a truck over a certain time limit are required to pay a penalty charge. Shippers that want to establish themselves as “shippers of choice” in the industry work hard to meet their time commitments and get motor carriers’ trucks back on the road as quickly as possible.
While a truck is stuck at a loading dock, it’s losing out on potential opportunities to carry other loads. The problem becomes compounded when truckers can’t make it to their previous commitments for picking up other freight.
Transplace carried out a survey, Common Accessorial Chargers for Shippers that revealed three common practices in terms of detention fees. These are:
- Most shippers do not pay detention fees until after a power unit has been delayed more than two hours.
- Most carriers charge a daily detention fee if just the trailer is detained. If the power unit is detained, carriers typically charge for every 15 minutes extending past the grace period.
- The study revealed that most shippers limit their detention fees to a maximum of $600.
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