Unlocking the Power of Detention Data for Better Freight Negotiations

Setting these expectations upfront—preferably before accepting the load—is crucial. For instance:

“We allow two hours of free time, after which a detention fee of $75 will be billed in 15-minute increments. Arrival and departure times will be verified via ELD and confirmed Bill of Lading.”

Clarifying terms is not aggressive; it’s a professional standard. Fleets that respect their time and effort are more likely to receive fair compensation.

Using Data to Enhance Rate Negotiations

The true value of detention becomes apparent when analyzing patterns over time. If your fleet is regularly experiencing lengthy dwell times for a customer, it’s time to leverage that data. Instead of merely requesting detention fees, indicate that it’s necessary to adjust rates based on verifiable track records.

For example:

“Over the last 60 days, we have delivered 14 loads, with 11 experiences of detention exceeding two hours, averaging 3.75 hours on site. That’s over 20 hours of unpaid truck time. To align with this trend, we must discuss rate adjustments.”

This approach shows a data-driven argument rather than an emotional complaint, creating a compelling case for increased rates backed by trends.

Preventing Inefficiencies: The Importance of Documentation

Relying solely on verbal accounts from drivers can lead to misunderstandings. Successful small fleets ensure that their back office supports drivers with a consistent process. This includes:

A centralized detention log accessible to dispatchers
Regular check-ins with drivers when they reach the one-hour mark
Confirming wait times with the facility or broker
Follow-up emails summarizing the downtime and requesting detention approval

Such coordination doesn’t need to be fancy; it just needs to be systematic. Being proactive about collecting evidence translates to increased awareness when invoices arrive at the shipper’s desk.

Identifying Frequent Offenders and Adjusting Rates

If specific customers repeatedly contribute to detention issues, it’s critical to reassess your pricing strategy. Determine whether you’ve incorporated detention into your rates or if you’re simply hoping conditions improve on their end.

Some facilities may consistently struggle with delays. Instead of passively accepting these inefficiencies, integrate them into your pricing. If traditionally charging $3.25 a mile, but anticipating two to three hours of waiting, it might be time to raise that figure to $3.85 to account for lost time.

Educating Shippers on the Cost of Delays

There’s a chance that some shippers genuinely underestimate how much detention costs. They may think, “It’s just an hour or two,” but that couldn’t be more misleading.

Make them understand the gravity of their delays:

$75/hour truck costs
Total detention revenue lost
One less load completed that day
Driver frustration and burnout risk
Unnecessary fuel and reefer hours

Walking shippers through the numbers fosters a deeper understanding of business efficiency and respect for your time, improving overall rate negotiations.

Conclusión

Viewing detention through a lens of data establishes it as a resource rather than a nuisance. Carriers who document, communicate, and charge what’s rightfully theirs ultimately succeed in this industry. When a truck sits idle, it’s essential to get organized, gather proof, and ensure appropriate compensation.

The logistics sector constantly evolves, much like a freight train speeding down the tracks. Understanding how to empower your negotiations with solid evidence becomes imperative for success. This way, as every minute passes, forward-thinking carriers can convert wasted time into valuable leverage.

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Understanding Detention: An Overlooked Opportunity

Detention is often seen as a burden by small carriers. However, it can be transformed into a powerful ability to negotiate better freight rates and contracts. Recognizing the significance of detention—and using it appropriately—can give fleets the leverage they need to thrive.

Key Insights to Consider

GPS data on truck arrivals and departures
Driver logs supported by electronic logging devices (ELDs)
Visual proof of wait areas and in-transit communication (calls, texts, emails)

Now is not the time to wait until a shipment goes awry to gather this information. Cultivating a habit of documenting key data ensures that when it’s time to invoice or renegotiate a contract, the facts are readily accessible.

Redefining Your Approach to Detention

Rather than considering detention a favor from shippers, adopt a proactive stance. This shift in mindset can significantly influence profitability. The moment a carrier engages with shippers or brokers, they must set clear detention policies detailing when detention begins, the hourly fee, and the documentation required for billing.