Detention Charges

TLI University: Detention Charges 

In the logistics industry, carriers often have strict delivery schedules to meet and may not be able to wait for an extended period of time at a pickup or delivery location. This is more important than ever with the HOS regulation.  If a driver is kept waiting beyond the agreed-upon time frame, the carrier may assess detention charges to compensate for the additional time and resources required. 

The amount of detention charges will vary depending on the specific carrier and the circumstances of the pickup or delivery. Some carriers may have a set hourly rate for detention charges, while others may have a more complex fee structure based on the length of the delay and the type of vehicle involved. Large shippers may offer their own schedule as well for detention charges where it has a max dollar amount for holding a driver over for the full day. 

It is important to understand the detention charges that may be assessed by a carrier, as these fees can significantly impact the overall cost of shipping. Some carriers may offer options to avoid detention charges, such as scheduling deliveries or pickups during off-peak hours or providing advance notice of any delays. 

In summary, detention charges in the logistics industry are fees that may be assessed when a driver is kept waiting at a pickup or delivery location for an extended period of time. These charges are designed to cover the costs associated with the driver's time, as well as the cost of maintaining the vehicle while it is not in use. The amount of detention charges will vary depending on the specific carrier and the circumstances of the pickup or delivery, and it is important to understand these fees and to consider options to avoid them when making transportation decisions.