Detention Dilemma: A Costly Conundrum for Trucking

Truck drivers often face significant delays at loading and unloading facilities, a problem known as detention. This issue has far-reaching implications for the transportation industry, impacting efficiency, costs, and driver morale. Supply Chain Process Improvement (SCPI), a solution partner of Lidd with transportation logistics expertise, recently shared with us that a staggering 30% of loads experience detention lasting between 0 and 2 hours, while 5% face delays of 2 to 4 hours and a concerning 5% endure detentions of 4 hours or more.

The High Cost of Waiting

But detention isn’t just a nuisance; it’s a costly problem. The American Transportation Research Institute (ATRI)’s study found that the for-hire trucking industry lost a staggering 135.9 million hours to detention in 2023, translating to $11.5 billion in lost revenue¹. And that’s just the tip of the iceberg. Detention also leads to increased fuel consumption, driver stress, and potential penalties for late deliveries.

The Financial Toll

• Direct Costs: Detention often results in additional charges passed on to customers, increasing transportation costs. SCPI notes that 75% of detention hours are invoiced to the customer, while 55% are ultimately paid. This can lead to a significant financial burden for carriers, who may increase their transportation rates to offset the costs of detention, ultimately affecting customers.
• Hidden Costs: Even when not explicitly invoiced, detention can lead to increased transportation costs due to inefficiencies.
  • Reduced Vehicle Utilization: Detention limits the number of trips a truck can make, leading to decreased productivity and increased costs.
  • Increased Driver Stress: Prolonged waiting times can contribute to driver stress and fatigue, which can negatively impact performance and safety.
  • Late Deliveries: Detention can cause delays in deliveries, leading to penalties and customer dissatisfaction.

It’s a problem that affects everyone involved in the supply chain. Shippers, carriers, and drivers all feel the pinch. But who’s really to blame?

The answer, unfortunately, is a bit complicated. While shippers and receivers often bear the brunt of the blame, the reality is that the problem is systemic. It’s a result of inefficiencies in the supply chain, from poor warehouse management to inadequate yard and dock operations.

Addressing the Detention Dilemma

To address this issue, a collaborative approach involving carriers, shippers, and logistics providers is essential. Potential solutions include:

• Improved Communication: Often, shippers are simply unaware of the detention problems at their facilities. By establishing open lines of communication, carriers can help shippers identify and address these issues.
• Technology Investments: Implementing automated systems for loading and unloading, using advanced analytics and TMS to optimize scheduling, or warehouse technology for improved inventory management can streamline operations and reduce waiting times.
• Enhanced Warehouse and Yard Management: Improvements in these areas can reduce congestion and waiting times. This could include everything from improved layout and workflow processes to optimized inventory placement.
• Performance-Based Pricing and Incentives: Carriers could offer rebates or discounts to shippers who demonstrate exceptional performance in minimizing detention times. Transportation rates could also be structured to reward shippers who adhere to loading and unloading schedules.

The Road Ahead

When it comes to transportation costs, detention is a big problem for the industry that requires a concerted effort to address. By working together and implementing innovative solutions, we can create a more efficient and sustainable transportation system.

Are you looking to reduce transportation costs and streamline your operations? LIDD can help. Our team of experts has extensive experience in supply chain optimization and can provide tailored solutions to address your specific needs. Contact us today to learn more

References

¹ American Transportation Research Institute, Costs and Consequences of Truck Driver Detention: A Comprehensive Analysis (2023), https://truckingresearch.org/2024/09/new-research-documents-substantial-financial-and-safety-impacts-from-truck-driver-detention/.