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How is Detention Paid?

Published in Freight Management 3 mins read

Detention in the trucking industry is primarily paid as an hourly rate charged by carriers to shippers or receivers when a truck driver's time at a location, waiting to be loaded or unloaded, exceeds a pre-agreed "free hours" allowance.

Understanding Detention Pay in Trucking

Detention pay is an essential mechanism in the logistics and transportation sector designed to compensate truck drivers and carriers for delays that occur outside of their control. These delays often happen when a driver arrives at a facility and is forced to wait for an extended period before their truck can be loaded or unloaded.

What Triggers Detention Charges?

Detention charges are incurred when a truck driver's waiting time at a pick-up or delivery location surpasses the standard allowance. This waiting period directly impacts a driver's ability to complete their next scheduled load, as their income is tied to moving and delivering goods, not to being stationary.

The "Free Hours" Concept

Most carriers incorporate a grace period, often referred to as "free hours," into their agreements. This allows for a reasonable amount of time for the loading or unloading process to occur without additional charges. Typically, this free time can range from one to two hours, but it varies by carrier and contract.

Calculation of Detention Pay

Once the designated "free hours" have elapsed, the clock starts for detention charges. Carriers then apply an hourly rate for every subsequent hour the driver is delayed. This rate is negotiated as part of the freight agreement and aims to offset the financial losses incurred by the carrier and driver due to the unexpected downtime.

Why Detention is Crucial for Drivers

For truck drivers, time is money. Their earnings are directly linked to the miles they drive and the loads they deliver. When a driver is detained, they are essentially losing valuable time that could be spent moving to their next destination or picking up another load. Detention pay helps to mitigate this loss, ensuring drivers are compensated for their time even when they are not actively on the road.

Here’s a summary of the key aspects of how detention is paid:

Aspect Description
Trigger Event Driver waits to be loaded or unloaded at a facility.
Standard Allowance Carriers provide "free hours" (e.g., 1-2 hours) before charges apply.
Payment Basis An hourly rate is charged after the free hours are used up.
Purpose Compensates carriers and drivers for lost earning potential due to delays.
Recipient The carrier charges the shipper/receiver, and the driver typically receives a portion.