New Detention Rates

Jan 26, 2017 at 10:43 PM CST + 6
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. With the price of most dealerships now charging on average $140.00 per hour for their labor. It is time for we truckers to ask for the same. $140.00 per hour maybe should become our standard detention rate. I know that shippers and brokers seem to want to pay $25-$50 per hour, and on the high side $75.00-$100.00 per hour. I don't get to tell the shop how much they can charge to work on my trucks. Why do shippers and brokers believe they can establish the rates for detention on my trucks? ELDS coming on shippers/brokers. Get ready to pony up the money. Giddee up Giddee up. Thank your buddies at the ATA for the ELD. Yep it was us little guys that were out there screaming for ELD ELD bring on the ELD. Now that they are coming I am planning on you having to pay us for all that supposed free time that you have been enjoying in the past. One more thing for you folks (we charge a $500.00 appointment charge now because of the ELD's) FCFS no appointment charge. My guys love it.

Replied on Fri, Jan 27, 2017 at 06:29 AM CST + 1
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. I believe 140 an hour should be the "base" rate for a truck and trailer whether its running down the road or sitting waiting to be loaded or unloaded

Replied on Fri, Jan 27, 2017 at 06:49 AM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Where do you come up with the $140 an hour figure? And at what point do you feel detention should start?

Replied on Fri, Jan 27, 2017 at 07:12 AM CST + 1
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Quote: "Where do you come up with the $140 an hour figure? And at what point do you feel detention should start?" Please, re-read the first line of first post.

Replied on Fri, Jan 27, 2017 at 07:12 AM CST - 1
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Quote: "Where do you come up with the $140 an hour figure? And at what point do you feel detention should start?" Please, re-read the first line of first post.

Replied on Fri, Jan 27, 2017 at 07:21 AM CST + 1
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. As I stated 140 as a base rate works out on a " long haul " mileage rate to 2.26 per mile at 62 mile an hour average. On "short" haul at 40 miles an hour average its 3.50 a mile this is a base rate fuel surcharge on top and any accessorial charges including detention after 1 hour

Replied on Fri, Jan 27, 2017 at 08:27 AM CST + 6
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Quote: "Where do you come up with the $140 an hour figure? And at what point do you feel detention should start?" First I would like to thank GRAYDON STEINER for using a logical and mathmatical approach to his conversation. Now Scott, I will address your question. If the shop can charge $140.00 per hour for service on my equipment then I should be able to recoup the same money for my time as well. If that does not make sense to you it is because you most likely have not written checks for $4000.00 or more in repairs. I just spent over $4000.00 yesterday for repairs on one of rigs. I have another one in right now getting a new ECM and some other work, Yep another $4000.00. I realize that you and the shippers think this is unreal, but the truth indeed is real. It is not I that live in a fantasy land but you guys that believe that my rig should only get $25.00 an hour for detention. By the way detention should start at the two hour mark retroactive to the first minute that rig got there. So after two hours the carrier would be owed $280.00 and any additional would be bought at 1 hour increments to max out at $1400.00 per day. If you are struggling with the relationship of the shops wages here is another relationship. The average price for a new tractor is $140,000.00 so 1% of that is $1400.00 break that out on a 10 hr day $140.00 per hour. Wow just 1% of the value of the tractor is all I am asking. Am I being greedy or is it you?

Replied on Fri, Jan 27, 2017 at 08:49 AM CST + 2
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Thank you alfred and thanks for that example , I dont understand why some think its acceptable to pay peanuts on such expensive equipment, not only to purchase but to maintain, and keep insured , tagged,and all taxes paid ! And then there is drivers wage. I look at some of these rates being posted and talk of being detained without any compensation , some of these guys are only making 5.00 dollars an hour to drive their own truck , I dont understand why thats ok

Replied on Fri, Jan 27, 2017 at 12:48 PM CST + 2
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Let me jump in and add...............If I order a plumber, electrician, backhoe or similar to a project around the house, and I am not ready for him to start work when he arrives, you can bet your a$$ he will charge me for his time waiting. Why should we be any different?

Replied on Fri, Jan 27, 2017 at 01:30 PM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Quote: "Let me jump in and add...............If I order a plumber, electrician, backhoe or similar to a project around the house, and I am not ready for him to start work when he arrives, you can bet your a$$ he will charge me for his time waiting. Why should we be any different?" Plumbers charge from where you placed the call to until they get to Your home.

Replied on Fri, Jan 27, 2017 at 02:56 PM CST + 1
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. My wife is anurse and makes $30/hour and shes a lifesaver. Maybe she should go on strike, or maybe we should not try to scalp our vendors, just give em a little haircut. I agree we need to get demerge but lets be realistic too. If i ask for 140 bucks a hour garanteed iget nothing and then will never get a call from that guy for work, but when i ask for reasonable money like 40 or 50 usually the shipper knows im not trying to screw em. Goes both ways.

Replied on Fri, Jan 27, 2017 at 07:26 PM CST + 2
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Quote: "My wife is anurse and makes $30/hour and shes a lifesaver. Maybe she should go on strike, or maybe we should not try to scalp our vendors, just give em a little haircut. I agree we need to get demerge but lets be realistic too. If i ask for 140 bucks a hour garanteed iget nothing and then will never get a call from that guy for work, but when i ask for reasonable money like 40 or 50 usually the shipper knows im not trying to screw em. Goes both ways." My daughter is a nurse as well. She has very little cost involved in doing her job with the exception of scrubs, and various tools for the trade. If we used your processing of risk vs reward then we should all be driving $40,000 - $50,000 trucks. We should all be paying the shops $40 - $50 per hour for their services. You are supposed to be a business man comparing yourself to an individual that works for another and the other provides the facilities for them to work, tools for them to work. That is a very bad comparison and is much of the problem. It would be like saying my wife is a teacher and we should not be making any more than she. We all know teachers are underpaid just as your wife the nurse is. It was not just to long ago that nurses were making $60.00 per hour. How is it that they are now making less? If we continue to sell ourselves short as truckers then the rest of the work force will also be doing likewise. Why do you wish to devalue your worth so much? Do you really feel that this old Cherokee is recommending that we actually scalp people, or do you maybe think I am tired of seeing others scalped while the corporations laugh all the way to the bank.

Replied on Sat, Jan 28, 2017 at 12:25 AM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Agreed on charging more for detention time. I also have said to customers. I'll wait your two hours but at 2 01 I get my time back. I will charge you for 2hrs from then on.

Replied on Sat, Jan 28, 2017 at 09:37 AM CST + 1
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Another angle is if you are 2 hours late for an appointment to unload. And the facility shuts down due to not having product what does that cost. If you are detained after your appointment time you are shutting down your production. What is the difference? Something they wouldn't consider.

Replied on Sat, Jan 28, 2017 at 10:39 AM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Micro and small motor carriers that are concerned about not getting paid for things like detention, rerouting of freight, cancelation of a scheduled load, etc., have an option: motor carrier tariffs. “Wait,” you say, “I thought they were abolished when the Interstate Commerce Commission (ICC) was closed down and trucking was deregulated?” When Congress abolished the ICC, the law only stated that tariffs were no longer required to be filed by federal code; it never said they were eliminated. In the 1980 Motor Carrier Regulatory Reform and Modernization Act, Congress allowed carriers to rely on tariffs to limit their liability for freight damage and establish rates and rules. Frankly, any carrier that operates without a tariff is missing a great opportunity to protect itself in a dispute with a broker or a shipper. Under 49 U.S.C. §13710, all motor carriers are required to have a written or electronic copy of the “rates, classifications, rules and practices" upon which any rate applicable to a shipment is based. Have you ever wondered about the terminology that is on most standardized bills of lading, which, by the way, almost every shipper issues? “This shipment is subject to the rates, classifications and rules that have been established by the carrier” is a standard example. With the removal of filing requirements, the format of standard numbering, appearance, and contents of tariffs are no longer used. The modern tariff is typically a series of paragraphs describing the rules that the carrier has decided to enforce on all of its shipments, coupled with the rate schedule. What you put in your tariff will depend on your type of operation; the more specialized you are, the more specific the tariff should be. Nearly all trucking tariffs have the following items in common: LIMITED LIABILITY Federal law allows carriers to limit their liability within each trucking company’s tariff language. Most carriers limit their liability to a specific dollar value per pound. Other trucking companies add a “full value” option in tariffs for an additional fee. HIGH VALUE SHIPMENTS Hauling freight that is of extraordinarily high value would require the trucking company add a tariff that contains accommodations requiring the shipper to state the value of the goods on the bill of lading, along with wording stating that freight valued at higher than a preselected amount wouldn’t be accepted transport. detention With the ELD mandate coming on board, this paragraph takes on even greater importance. Detention tariffs separate driver detention rates from equipment detention rates. The tariff should also have requirements that access charges to shippers for unnecessary detention after specified free time. PAYMENT PROTECTION Here’s one that can help a carrier get paid. This tariff section contains language that gives the carrier the right to withhold delivery and states that freight may be held to satisfy all outstanding unpaid claims. (If you want to use this, consult a transportation attorney for the precise wording necessary.) LATE PAYMENT CHARGES This tariff assesses charges for late payment. LTL carriers typically use “loss of discount” provisions that offer service to customers at discounts but then cancel the discounts if freight charges are not paid on time. Keep in mind that surface transportation rules must be followed when using this provision. SHIPPER LOAD AND COUNT If the shipper or the consignee loads, unloads, sorts and/or segregates products in the shipment, you must make sure you and your drivers are not held responsible for shortages. SUBSTITUTED SERVICE There are going to be loads that, due to unexpected circumstances, you would like to subcontract to another carrier to meet some or all of the contractual requirements. A well-written substitution provision can protect you from being accused of brokering a load without authorization. The provision reserves the carrier the right, for operational convenience, to hire other qualified carriers as subcontractors. Again, consult a transportation attorney for the proper wording. Then there are the accessorial service charges. This area includes provisions such as the previously mentioned detention clause. It also might feature a number of other services such as these (or other specialty offerings): Loading and unloading, including lumper fees; Pallet exchange; Truck ordered not used; C.O.D (collect on delivery) shipments; Additional licenses and permits; Consignment or diversions (Includes rejected items); Territorial charges (loading from or delivering to Long Island, NY, is a good example); Proof of delivery charges; and Expedited services/ exclusive use. As a great starting point for assembling your tariff, I highly recommend Protecting Motor Carrier Interests in Contracts, the eBook by Henry E. Seaton, Esq., especially chapter two, “Service Conditions or Rules Circular.” Having a tariff published is one of the best protections a carrier can have to provide that legal leg up when there is a disagreement between the carrier, broker, shipper and consignee.

Micro and small motor carriers that are concerned about not getting paid for things like detention, rerouting of freight, cancelation of a scheduled load, etc., have an option: motor carrier tariffs.

“Wait,” you say, “I thought they were abolished when the Interstate Commerce Commission (ICC) was closed down and trucking was deregulated?”

When Congress abolished the ICC, the law only stated that tariffs were no longer required to be filed by federal code; it never said they were eliminated. In the 1980 Motor Carrier Regulatory Reform and Modernization Act, Congress allowed carriers to rely on tariffs to limit their liability for freight damage and establish rates and rules.

Frankly, any carrier that operates without a tariff is missing a great opportunity to protect itself in a dispute with a broker or a shipper.

Under 49 U.S.C. §13710, all motor carriers are required to have a written or electronic copy of the “rates, classifications, rules and practices" upon which any rate applicable to a shipment is based. Have you ever wondered about the terminology that is on most standardized bills of lading, which, by the way, almost every shipper issues? “This shipment is subject to the rates, classifications and rules that have been established by the carrier” is a standard example.

With the removal of filing requirements, the format of standard numbering, appearance, and contents of tariffs are no longer used. The modern tariff is typically a series of paragraphs describing the rules that the carrier has decided to enforce on all of its shipments, coupled with the rate schedule.

What you put in your tariff will depend on your type of operation; the more specialized you are, the more specific the tariff should be. Nearly all trucking tariffs have the following items in common:

LIMITED LIABILITY
Federal law allows carriers to limit their liability within each trucking company’s tariff language. Most carriers limit their liability to a specific dollar value per pound. Other trucking companies add a “full value” option in tariffs for an additional fee.

HIGH VALUE SHIPMENTS
Hauling freight that is of extraordinarily high value would require the trucking company add a tariff that contains accommodations requiring the shipper to state the value of the goods on the bill of lading, along with wording stating that freight valued at higher than a preselected amount wouldn’t be accepted transport.
detention

With the ELD mandate coming on board, this paragraph takes on even greater importance. Detention tariffs separate driver detention rates from equipment detention rates. The tariff should also have requirements that access charges to shippers for unnecessary detention after specified free time.

PAYMENT PROTECTION
Here’s one that can help a carrier get paid. This tariff section contains language that gives the carrier the right to withhold delivery and states that freight may be held to satisfy all outstanding unpaid claims. (If you want to use this, consult a transportation attorney for the precise wording necessary.)

LATE PAYMENT CHARGES
This tariff assesses charges for late payment. LTL carriers typically use “loss of discount” provisions that offer service to customers at discounts but then cancel the discounts if freight charges are not paid on time. Keep in mind that surface transportation rules must be followed when using this provision.

SHIPPER LOAD AND COUNT
If the shipper or the consignee loads, unloads, sorts and/or segregates products in the shipment, you must make sure you and your drivers are not held responsible for shortages.

SUBSTITUTED SERVICE
There are going to be loads that, due to unexpected circumstances, you would like to subcontract to another carrier to meet some or all of the contractual requirements. A well-written substitution provision can protect you from being accused of brokering a load without authorization. The provision reserves the carrier the right, for operational convenience, to hire other qualified carriers as subcontractors. Again, consult a transportation attorney for the proper wording.

Then there are the accessorial service charges. This area includes provisions such as the previously mentioned detention clause. It also might feature a number of other services such as these (or other specialty offerings):

Loading and unloading, including lumper fees;
Pallet exchange;
Truck ordered not used;
C.O.D (collect on delivery) shipments;
Additional licenses and permits;
Consignment or diversions (Includes rejected items);
Territorial charges (loading from or delivering to Long Island, NY, is a good example);
Proof of delivery charges; and
Expedited services/ exclusive use.

As a great starting point for assembling your tariff, I highly recommend Protecting Motor Carrier Interests in Contracts, the eBook by Henry E. Seaton, Esq., especially chapter two, “Service Conditions or Rules Circular.”

Having a tariff published is one of the best protections a carrier can have to provide that legal leg up when there is a disagreement between the carrier, broker, shipper and consignee.