I have written this blog in strong disagreement with an article posted on of my favorite publications: Logistics Today, http://www.logisticstoday.com. The article is found here: http://bit.ly/92jkJ2. (PLEASE READ ARTICLE BEFORE PROCEEDING).
The article written by unattributed author basically states that the FMCSA has told SHIPPERS they need to stop undermining truckers ability to drive safely and stop wasting their time. The government is telling customers they need to be better stewards of the resources of their vendors. To make matters worse, the OOIDA's Todd Spencer agreed with this and endorsed government's opinions on free-market business practice.
I disagree with this article, as this article is not accurate. Most companies do charge detention. I have been on both sides of this coin as Business Development Director at Freight Access.com (http://www.freightaccess.com), working with abrokers, carriers, and shippers. When a truck is held, the carrier typically charges the broker detention fees per hour (if broker is involved, otherwise charged back to shipper). When the broker is charged detention, the shipper ultimately pays the broker's detention invoice, after that carrier charge is re-submitted to shipper by their broker. Detention happens most commonly at ports and trade shows. If an Owner Operator does not charge detention, that is a business policy they have chosen to elect or chosen to forgo. Some restaurants charge you for soda refills, others don't charge you for refills and provide these resources to in attempts to retain your business in the future. The FREE MARKET Decides.
When an account refuses to pay the carrier or owner operator detention charges, or argues... the market fixes itself in most cases (should fix itself in ALL CASES). What I mean is that if a client or customer is not profitable to do business with, it is up the us as industry professionals to stop doing business with that company. The last thing anyone needs is government intervention telling us how to govern the free market.
So, while detention always has been and always will be a problem... it is really a function of monitoring business profitability. Detention time and consequently impact on the driver log is a cost of doing business, which must be evaluated and communicated clearly to dispatch, sales, and business development folks. Feel free to join my linked in group called "Owner Operators and Drivers of North America." http://bit.ly/cynnTI. The purpose of the group is to discuss items like this.
In conclusion, I am very sympathetic to the terrible conditions drivers have on the road today. Detention is one of a long list of areas which our brave men and women need assistance from the market while out on the road. However, a governing body to form an OPINION on any issue is certainly not worthy of applause. It is the job of these Agencies to enforce federal law, not form their own personal opinions. We need to be cognoscente of the probability of detention and cost over runs for each individual load delivery and help carriers and owner operators measure shipper (customer) profitability for each account. While there are several options for these tools, the real issue lies in the fact that it is important to know that the solutions lies within each of us as professionals, and not the government's intervention.
Brad Hollister
Business Development Director
http://www.freightaccess.com
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