Receiving an invoice for a driver’s detention pay can be a frustrating experience for shippers — particularly when the driver was held up at their destination through no direct fault of the shipper in question.
That frustration can be compounded by the variability in detention policies across different carriers, making it difficult to anticipate and manage these expenses effectively.
But if the shipper doesn’t pay for that detention time, who should?
It’s understandable to feel blindsided by unexpected costs, but before the finger-pointing and phone calls begin, let’s take a beat to fully understand why detention happens and how shippers can be proactive in avoiding it.
At Anderson Trucking Service (ATS), we've been helping shippers navigate the complexities of detention pay for decades, and our experience has equipped us with the knowledge and strategies necessary to mitigate these challenges.
Our goal is to equip you with practical tips and insights that will not only help you minimize detention charges, but also foster better communication and relationships with your transportation providers.
In this article, we'll delve into the nitty-gritty of detention pay, including what it is, when it starts, who should pay for it, and how to avoid it.
By understanding these elements, you'll be better prepared to manage detention costs and maintain smooth operations within your supply chain.
- What is detention?
- When do detention fees start?
- Who should pay for detention fees?
- How to avoid detention fees and related issues
What is Detention?
In trucking, detention refers to the time drivers spend waiting at a shipper or receiver before they can be loaded or unloaded.
Most carriers allocate some “free time” — typically two to three hours per driver — to account for normal delays, but once that time is up, drivers begin to generate detention pay, which shippers commonly refer to as a detention fee.
Detention pay is most often measured in half-hour or hourly increments, depending on the carrier. The industry standard detention pay rate is $35-50 per hour.
A good rule of thumb? The more specialized the driver requirements on your shipment, the higher that driver’s hourly detention rate will be.
Detention pay exists because drivers have strict limitations on how many hours they can work per day for safety reasons.
If drivers encounter an unexpected delay and end up sitting in detention, they can’t make up that time. They’re losing more than just their patience — they’re losing out on money in their pocket, too.
Detention pay bridges this gap for truckers by compensating them for their time spent waiting past the agreed-upon free time. It also serves to motivate shippers and receivers to maintain prompt, efficient loading and unloading operations.
When Do Detention Fees Start?
Detention pay starts once a driver has waited at a shipper or receiver past their carrier’s allocated “free time.”
The industry standard for free time is two to three hours per driver. Here’s how a two-hour free period works in practice:
A driver has a 12 p.m. appointment at a receiver. The driver arrives on time at 12 p.m. Normally, the driver would expect to have their truck empty by 2 p.m. However, when they arrive, there is a line at the loading dock. The driver waits in line for several hours and has an empty truck by 3 p.m.
Their carrier has a detention policy that includes a two-hour free period, so the hours of 12-2 p.m. are unpaid. The driver will receive detention pay for the additional hour (2-3 p.m.) they spent waiting over the allocated free time.
It’s important to note that some carriers have different free time standards. There are also carriers that will charge a layover fee (usually about $250 or so) after a certain amount of detention time.
Because detention policies may differ from carrier to carrier, shippers and drivers should never make assumptions about those standards.
Be sure to talk with your transportation provider about its detention policies. How long is its free time window? What is its hourly rate? Is detention accrued in half-hour or hourly increments?
While it’s the provider’s responsibility to communicate these standards to shippers and drivers, it’s always a good idea to be proactive and ask questions before it becomes an issue — not after.
As a shipper, you should be prepared to answer questions from your transportation provider regarding your approach to detention fees.
Proactively setting a standard for your shippers and receivers that outlines who pays for detention and at what rate will go a long way toward avoiding conflicts down the road.
Who Should Pay for Detention Fees?
So you’ve received a signed bill of lading (BOL) from your transportation provider that indicates the driver is owed detention pay. But you weren’t responsible for the loading or unloading conditions that led to that driver accruing detention in the first place; should you be responsible for those costs?
The short answer is yes — you probably should be. But before you take up arms against us and start flinging fault at your shipping or receiving parties, hear us out.
In a perfect world, every customer would have an agreement in place with their shippers, receivers, and transportation provider that clearly states who in their supply chain pays for detention.
These agreements can take many forms:
- Customers may choose to pay detention themselves immediately upon receipt.
- Customers may establish an expectation with other parties in their supply chain (i.e. shippers and receivers) that if detention is accrued at their location, they will subsequently be responsible for those costs.
- Providers may agree to pay drivers detention on behalf of their customer, settling up with the customer on the next invoice.
- Providers and customers may agree to factor detention directly into their rate.
An established detention policy simplifies the entire process and allows drivers to get paid quickly. It also eliminates any conflict between transportation providers, their customers, and their customers’ shipping and receiving parties.
Unfortunately, we don’t live in a perfect world, and not every shipper communicates well across their supply chain.
Situations where there is no established contract or expectation in place with the customer regarding detention fees — or when the customer refuses to pay the detention fees accrued at one of their shipping or receiving partners — are more common than anyone would like.
If a transportation provider must seek payment from the party responsible for the delay that caused the detention in the first place, things can get messy.
The party on the receiving end of that call may not have much of a relationship with the transportation provider or their customer, making them more likely to refuse payment and toss blame back onto the customer.
This back-and-forth can be tedious and erode the relationships between all involved — including the drivers, whose pay may be delayed due to squabbles over responsibility.
Transportation providers will often take on the burden of paying the driver in question quickly to avoid tension in the driver-carrier relationship. But this is not a dynamic shippers should expect or rely on.
The provider will still have to circle back with its customer to talk about responsibility for those costs, and to establish a clear policy for future shipments.
So, remember when we said shippers should probably be paying for detention? That was only half true. Shippers should be paying for detention or have clear agreements in place between all parties that determine who pays.
It is the shipper’s responsibility to interface with the origin and destination of each shipment and arrange contracts that establish responsibility for detention fees when they happen.
With a little communication and proactivity, shippers can avoid the question of who pays for detention fees altogether — it’s already asked, answered, and in writing!
How to Avoid Detention Fees and Related Issues
While detention isn’t 100 percent avoidable, there are ways for shippers to protect their supply chains against detention and the conflicts that can come with confused payment responsibilities.
Here are our top three tips for ensuring smooth pick-ups and drop-offs with limited delays:
- Practice proactive communication
- Be familiar with your shipping destinations
- Make appointments
Practice Proactive Communication
Look, we know you’ve heard it already, but this tip is so critical that it’s worth repeating: The expectation of who pays for detention should be set by the shipper well before any shipment leaves the dock.
As a shipper, it’s your responsibility to communicate with your origin and destination locations to establish agreements regarding detention charges.
When it comes to avoiding detention-related disputes, proactively setting the standard is everything.
A pre-existing agreement between a shipper and its various shipping locations can be the difference between a speedy resolution and weeks of frustrating back-and-forth.
Be Familiar with Your Shipping Destinations
In our experience, detention fees most often occur when shipping to an unfamiliar location.
When a shipper has never worked with a destination before and has no contract in place outlining the terms of their agreement, detention is not only more likely to occur — it’s more likely to result in conflict over who pays, too.
Unforeseen circumstances can and do crop up now and then, but to the best of their ability, shippers should strive to reach a baseline familiarity with all their shipping locations.
That includes having conversations early on regarding expectations for timely loading and unloading, any unique conditions that could factor in, and, yes, who pays for detention should it accrue.
Trust us: When it comes to who pays, even a verbal understanding between the parties involved is better than having none at all.
Make Appointments
Scheduling set appointment times for loading and unloading is one of the simplest ways shippers can prevent detention fees from accruing in the first place.
Appointments reduce the risk of detention by allowing the location in question to better regulate its shipping and receiving times. This optimizes the flow of trucks in and out of the loading dock and, in turn, keeps drivers on schedule.
Your transportation provider can help set up appointment times that work for all involved. Your provider should also communicate with drivers to ensure they’re held accountable for arriving on time and accurately recording their in and out times.
By making the effort to leverage scheduling, shippers can feel more confident that their shipments will not accrue detention — thus eliminating the “Who pays?” question before it has a chance to emerge.
Manage Your Transportation Budget Efficiently
Paying for detention can be frustrating for shippers, as the time drivers spend waiting at an origin or receiver is rarely within their control.
But having a clear process for who pays for these fees when they accrue is crucial.
Not only can detention responsibility disputes weigh down supply chains and erode relationships between shippers, carriers, and drivers, but detention pay also offsets the financial loss drivers face as they wait in line at loading docks.
Understanding and communicating detention policies, including free time windows and hourly rates, are vital for both shippers and transportation providers to avoid conflicts and ensure drivers are paid promptly.
By proactively discussing and setting clear detention agreements with both their transportation providers and their shipping locations, shippers can prevent disputes and maintain strong relationships within their supply chain.
With this knowledge in hand, you’re now better prepared to navigate the complexities of detention in the trucking industry and avoid accruing detention on your shipments altogether.
This will help you keep your operations moving efficiently without breaking your budget. For more insights into managing freight costs, check out our video on Common Freight Accessorial Charges and How to Avoid Them.
This quick video outlines several other incidental charges that can quickly add up over the life of a load. By understanding what these charges are in addition to how and why they occur, you can further protect your supply chain from unwanted expenses.
