Over the last year, as the new Hours
Of Service (HOS) rules have been implemented, more shippers are seeing their
freight spend increase and exceed their budgets in a new way.
Shippers of truckload freight
are accustomed to transportation rate increases and, of course, fuel
surcharges. But, now, a sleepy accessorial charge is wreaking havoc with
transportation budgets. Detention charges and related layover charges are increasing
at an alarming rate as the impact of the HOS rules are felt.
Shippers are hungry for
benchmarking data as pricing on this accessorial service shifts. Transplace
recently published the Transplace
Accessorial Benchmark Study. Reporting on the results of the study, Supply and Demand Chain Executive (Bosecker & Hudspeth, 2012) noted that:
In the case of detention with power, 80 percent
of carriers allowed for 2 hours of free detention.
Only 7 percent of carriers allow less than two
The typical charge for detention with power is
$50-$60 with time.
Most carriers billed in increments of 15 minutes
while a significant minority bill in increments of no less than a full hour.
Detention delays may also force layovers charges that range from $100 to
Shippers should use their freight payment data to monitor
any increase in these charges and formulate a strategy to mitigate these fees
by negotiating increased hours of free detention and reduced layover charges
with their truckload carriers.
Otherwise, they could receive some “punishment” of their own when monthly
financial statemetns are produced and freight expense dramatically exceeds budget.
Bosecker, C., &
Hudspeth, B. (2012, February 2). FEBRUARY ONLINE EXCLUSIVE: The Case For
Benchmarking. Retrieved July 13, 2012, from Supply and Demand Chain