In a balanced market, no single carrier or shipper has absolute control over pricing. Unfortunately, the market is not always balanced, and life can get challenging as the market picks up and a freight surplus occurs. Naturally, the carriers have more control in this environment. They can be more selective with the type of freight and shippers they want to work with. If you make business difficult, such as by having inefficient facilities that contribute to longer detention times, there is a good chance you could see a rate increase. This entire article is centered on ensuring you don’t become that shipper. There are a ton of different things you can do to increase load acceptance and improve routing guide compliance. For now, we will focus on one major concept: detention and delays.
Here is a great infographic that helps break down how truckload detention and delays affect carriers:
Long detention time and other delays have been proven to adversely affect CMV (commercial motor vehicle) driver fatigue. In 2001, an FMSCA-sponsored study found that drivers with loads that had longer-than-expected load times were associated with more driver fatigue. Unexpected delays, such as equipment malfunctions or staffing shortages, can further increase detention time and fatigue. These delays can cause a whole host of problems for the carrier. Some examples are putting drivers in situations where they drive beyond the legal hours of service (HOS) or misrepresenting driving hours in their logbooks. Considering that 10%-15% of deliveries can expect some form of detention, this can be a fairly big problem for carriers. Detention can often last several hours, especially at busy facilities. Operational inefficiencies at shipping or receiving facilities are a common cause of extended detention times, and taking precautions to make sure that you are not the shipper who is known for being slow goes a long way for your business!
Detention time refers to the period a driver spends waiting at the shipper’s or receiver’s facility, often during loading or unloading, which can significantly impact operational efficiency.
How do we actually reduce delays and detention time?
I am glad you asked. Here are a few insights that will help you get on the right path to minimize delays and mitigate detention:
Remove Facility Limitations
Limitations at your facility can create a backlog of vehicles that need to be loaded or unloaded, and delays in the unloading process can contribute to detention time. In order to handle these situations, a shipper should always be adequately staffed, have the necessary equipment, and do their best not to overschedule appointments. Knowing the actual availability of docks and resources is also crucial to prevent bottlenecks and improving operational efficiency. We operate a warehouse of our own, so we understand the importance of applying these principles to our operation.
Utilize your TMS
Most shippers use some form of Transportation Management System (TMS) to preset delivery appointments. Setting a clear appointment time helps manage expectations for both shippers and carriers and can reduce detention by minimizing delays beyond the scheduled time. This allows them to standardize their process and adds consistency to their operation. For a carrier, this is important because it will lead to more predictable scheduling. It is also important to include specific terms regarding detention, such as fees and conditions, in contracts to avoid confusion and disputes. Transparency between the shipper and carrier will ALWAYS garner better results. Additionally, using TMS reporting functionality to track the time spent at each facility can help identify patterns of detention and improve operational efficiency.
Stick to Your Appointments and Do Not Cater to Late Carriers
Do not miss appointments! If you are in a very busy facility, you may have a goal of scheduling carriers out every 30 minutes and having them unloaded within the next 90 minutes. When schedules are not followed, delays can quickly accumulate, impacting operational efficiency and leading to increased costs. If you have a carrier that arrives late, ideally, they should be rescheduled and unloaded at a later time. When a driver arrives late, this often results in additional time spent waiting before unloading can begin. If a truck is delayed by more than one hour beyond the scheduled appointment, detention fees may apply. Those who do arrive on time should not be punished by the offenders; this prevents a backlog of trucks.
Get DATA on your operation. Use those reports!
Having more visibility with your TMS will allow you to highlight weak points in your operation. Using the TMS’s reporting functionality can help pinpoint busy times and build strategies around them. Analyzing these reports also allows you to identify the factors that contribute to detention, such as scheduling issues or infrastructure delays. Reviewing historical data can help determine average detention rates and identify opportunities to reduce detention charges. You will have a better grasp of when your volume picks up and how to react. Being prepared will prevent a lot of operational mistakes with regard to unloading/loading.
Build a REAL relationship
Doing things right by the carrier has more than just transportation cost benefits. It builds trust between you and the carrier, which will have an overall positive impact on your customer. Clear communication and well-defined agreements help avoid confusion between the shipper and the carrier. Since each company may have different practices regarding detention, it is important to discuss expectations up front. When both parties feel like they are on the same team, good things start to happen, and everyone benefits.
Conclusion and Future Directions
In summary, detention time remains a significant challenge in the trucking industry, leading to delays and financial losses for all parties involved. By understanding the causes of truck detention and implementing strategies such as negotiating detention fees, adopting flexible scheduling, and integrating technology, companies can minimize detention and improve operational efficiency. The future of the trucking industry will depend on continued efforts to mitigate detention through real-time updates, clear communication, and collaborative problem-solving. As logistics operations evolve, embracing new strategies and technologies will be essential for reducing costs, improving job satisfaction for drivers, and increasing customer satisfaction. By working together, trucking companies, shippers, and receivers can create a more efficient, cost-effective, and resilient supply chain.