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Sep 18, 2015

TRUCKS DETTENTION TIME * USA: A bigger problem for haulers of box trailers

* Georgia - Detention détente: Cadle Trucking
-- After a few years running under his own authority, flatbedder and heavy hauler Ben Cadle, owner of Cadle Trucking, decided to lease to Bennett Motor Express in 2011, becoming an agent for the carrier and bringing his customers with him. Though he readily acknowledges that detention issues are bigger problems for haulers of box trailers – he lives it, too, with 10 percent of his freight being paper products moved in a dry van – it’s an issue on at least half of his nine-truck fleet’s loads, he estimates... Whether or not Cadle gets detention rates from the customer, “drivers know I pay after two hours to sit there,” which makes it incumbent on him to negotiate rates upfront with the customer. He pays his drivers $14 to $18 hourly for detention, depending on seniority, and all of his regular shippers and receivers are aware of that. “If they don’t have us unloaded in two hours,” Cadle says, “I will bill X amount, and if it’s heavy haul, it’s more.” ... He determines rates using as a benchmark what he commonly charges hourly for local runs, covering the cost to operate any given hour (including driver pay, insurance and workers compensation), minus the cost of fuel, and allowing for some profit. Essentially, he hews to the method most operators indicated as fair in polling of readers at OverdriveOnline.com for determining detention rates to charge customers, a measure of profit per mile converted to a time-based rate, with fixed costs added... 
(Photo: A Cadle Transport 2013 Freightliner Coronado glider) -- Augusta, GA, USA - Overdrive, by Todd Dills - September 15, 2015


* Why you deserve $64/hour for detention 

 ... The example below of a $64 hourly rate is what the latter could look like based on the average owner-operator business income and mileage numbers of independent owner-operator ATBS clients in 2014. Such one-truck independents made more than $60,000 in net income on 97,500 miles on average. Those clients’ average fixed costs (including truck and trailer payments, insurances and the like) are added in the second part of the calculation to be covered under the final rate... Just matching profit, or net income, in detention rates doesn’t fully cover owner-operators’ costs, says Todd Amen, ATBS president; including fixed costs makes for a more accurate compensation. In addition, but not part of the calculation below, you can add your average variable hourly costs to idle or run alternative climate-control devices... 
 ° A comment from Tom Crowley, 2 days ago:  This is from HUNT TRANSPORTATION, INC. - SUMMARY OF ACCESSORIAL CHARGES................ DETENTION - TRACTOR-TRAILER UNITS..... $75.00 for each hour beyond two (2) hours free time; $37.50 each additional 30 minutes or fraction thereof. Maximum of $750 per 24-hour period for single drivers and $1500 for team drivers... 
Augusta, GA, USA - Overdrive by Todd Dills - September 17, 2015

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