Understand Detention Fees

Transcript

Sometimes Less-than-Truckload (or LTL) carriers have to provide unexpected services or accommodations in order to complete your delivery. This results in additional fees. Koho is here to help you avoid unexpected charges. Today, we’re talking about detention fees.Detention fees are charged when a truck has to wait longer than usual for a shipment to be loaded or unloaded. Different carriers set different time limits. For LTL shipping, the time frame can be as little as 15 minutes. After that time period, the charge is often increased with every additional 15 minutes of waiting time.Because each truck carries shipments for multiple customers, LTL carriers need to make the most of their time. Every extra minute they have to spend making one pickup or delivery is a minute they aren’t making another. Schedules get set back, other shipments get delayed, and a domino effect gets created.To avoid these fees make sure someone is available to meet the driver at both the pickup and destination locations and prepared to unload or load the shipment. Just in case there’s a dispute with the carrier, it’s a good idea to document the arrival and departure times and check the proof of delivery paperwork to make sure they’re accurate.Want to learn more about how to avoid unexpected fees? Go to gokoho.com.

What are freight rebills or additional charges?

Typically, when you buy a product or service you know exactly how much you’ll be paying. With less-than-truckload (LTL) shipping, that’s not always the case. After your shipment has been completed, additional charges, also known as rebills, can be added to the price you were initially quoted. Because of how complex LTL shipping can be, rebills are a fairly common occurrence in the LTL industry. Delays that keep the driver waiting, inaccurate freight measurements or weights, incorrect paperwork, or unexpected equipment needed to load or unload your cargo can all result in unpleasant surprises on your invoice. And they can be substantial. For LTL, detention fees aren’t very common, but people are seeing them more and more frequently.

What are detention fees?

Detention fees are charged when a truck has to wait longer than usual for a shipment to be loaded or unloaded. Different carriers set different time limits. For LTL shipping, the time frame can be as little as 15 minutes. After that time period, the charge is often increased with every additional 15 minutes of waiting time.

The LTL industry is dependent on maximizing their time given the multiple stakeholders they have to service. Every extra minute they have to spend making one pickup or delivery is a minute they aren’t making another. Schedules get set back, other shipments get delayed, anda domino effect gets created.

How do I avoid detention fees in the future?

Make sure someone is available to meet the driver at both the pickup and destination locations and prepared to unload or load the shipment. It would be wise to document the arrival and departure times of the truck, just in case there’s a dispute. And be sure that the recipient checks the driver’s in and out times on the Proof of Delivery.

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