Explore the costs of detention time in trucking, from financial burdens on drivers to impacts on motor carriers and the strategies to mitigate these costs.
For many drivers, watching the clock tick by is a huge part of their day. And when those minutes go by without making any progress toward achieving your business goals, you feel the pressure rising.
MIT Freight Lab research found that truck drivers average only about 6.5 hours a day on the road out of their 11 available hours. Similarly, a 2023 Detention Time Survey from the Owner-Operator Independent Drivers Association (OOIDA) found that 72% of drivers wait 3 hours or more per week waiting to load and 70% wait 3 or more hours per week to unload.
Any period where drivers are forced to wait without making any forward progress should be considered a financial burden – that’s why you need to understand what causes detention time, the costs involved, and how you can work to create a more efficient and economically-viable transportation company.
The term detention time refers to any non-driving period your drivers endure between a dock appointment and for cargo to be loaded or unloaded. These minutes quickly turn into hours, which after a “free period”, typically around two hours, accrue specific fines called detention fees or detention charges. This means any delay can have a significant financial impact on your company, supply chain, and broader network in which your business operates.
Detention time creates financial burdens for truck drivers that cannot be easily ignored or understated. These constant delays shrink available driving hours, which affects how much your drivers can earn. For many drivers, this causes a tangible decrease in what they take home each day that is only partially mitigated by detention pay.
A recent study from the US Department of Transportation used simulation analysis and real-world data to determine the effects of detention on earnings and net revenues for both truckload drivers and motor carriers. The study found that detention leads to an earnings reduction of between $1,281 and $1,534 per driver per year—for for-hire commercial motor vehicle drivers in the truckload sector.
Some companies, such as American Central Transport, offer driver detention pay, as well as nuisance pay.
“If you drop your load and you don't have another load ready to go within so much time, we immediately pay a certain dollar amount,” American Central Transport President and COO Phil Wilt said on the Semi-Related Podcast. “We’re paying something to make sure that we understand that you know we know your time is valuable.”
According to the USDOT study mentioned above, motor carriers also faced substantial financial challenges due to detention time. Researchers estimated that truckload sector motor carriers see net incomes reduced by $250.6 million to $302.9 million annually due to detention. This means it’s not just the individual drivers being affected, but the profitability and operational efficiency of the entire carrier operation that suffers. The impact of those losses is then felt throughout the supply chain.
Detention fees are charges that shippers pay when trucks are held beyond their allotted free time. This free time is typically specified in shipping contracts or agreements and allows for a set time during which a trailer can be loaded or unloaded without incurring additional costs. After this period ends, detention fees start to accumulate.
In 2014, the FMCSA revealed that drivers experience detention time at nearly 1 of every 10 stops. Across these stops, detention accounted for 1.4 hours of the 3.4 hours of average dwell time. The common free waiting period lasts only two hours, with fees that range between $50 and $100 per hour afterward.
Frequency of collection for drivers who collect detention pay, as reported by the Owner-Operator Independent Drivers Association 2023 Detention Time Survey.
Additional hours in detention are usually caused by:
The longer your drivers wait in detention, the greater the financial burden becomes for them and your company. Carriers calculate detention rates on an hourly to daily detention basis, with a total cost set as the rate per hour/day multiplied by the number of hours/days the equipment is detained.
Even with this system in place and despite clear guidelines on detention fees, carriers still face challenges in collecting them. According to the American Transportation Research Institute (ATRI), only 29.3 percent of carriers are able to collect the detention fees they bill to customers.
How often drivers attempt to receive detention time compensation, as reported by the Owner-Operator Independent Drivers Association 2023 Detention Time Survey.
Across the country, detention times differ based on diverse operational and economic trucking industry landscapes. But nationwide, truckers still report a considerable amount of time each week in detention. According to the 2023 Detention Time Survey by the Owner-Operator Independent Drivers Association Foundation (OOIDA), only 30 percent of drivers spend 0 to 2 hours each week waiting to unload and 28 percent spend 0 to 2 hours waiting to load. The remaining majority of drivers spend anywhere from 3 to 30+ hours in detention time.
Results of the Owner-Operator Independent Drivers Association 2023 Detention Time Survey for waiting times for loading and unloading.
A major factor in why some drivers spend more time in detention than others is the particular shippers and receivers they dock with. According to the OOIDA survey, the top three shippers who consistently detain drivers for more than 2 hours include Walmart, Americold, and Tyson. The top three receivers detaining drivers for more than 2 hours include Walmart, Kroger, and Sysco Foods.
Top shippers who detain drivers, as reported by the Owner-Operator Independent Drivers Association 2023 Detention Time Survey.
Counteracting the financial drain detention times cause is all about identifying the roots of problems and employing intuitive strategies to mitigate their effects. Selecting the right freight for your trucks and utilizing drop trailer programs alone can seriously reduce waiting times at docks. Additionally, adopting more advanced appointment scheduling technologies and carefully tracking dwell time through geofencing can help you enhance efficiency at every facility.
It’s clear that prolonged wait times affect drivers and motor carriers alike by reducing earnings and increasing operational costs. By gaining an in-depth understanding of what causes detention, how it varies by region, and the modern tools the trucking industry can use to reduce it, businesses will gain a significant head start on increasing the long-term health and profitability of the industry as a whole.
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