Detention pay is a common term in the seaway transportation industry. It refers to compensation paid to truck drivers for time spent waiting at the port or terminal beyond the allotted free time. Detention pay is typically paid per hour and can vary depending on the carrier and the shipment being transported.
This is significant in seaway transportation because of the complex nature of port operations. Ports are often congested, and long wait times for loading and unloading shipments can occur. Various factors, including mechanical issues, labor disputes, or customs inspections, can cause delays.
-Inefficiency in Loading / Unloading processes
-Possible delays in production processes
-Traffic jams on the port or highway
-Unexpected weather conditions
Detention pay charges can be frustrating for trucking companies and drivers. These charges occur when a driver is delayed at a shipper or receiver’s location for an extended time beyond the agreed-upon waiting time, causing a loss of productivity and revenue. However, there are ways to avoid detention pay charges and minimize their impact on your bottom line.
– Planning and Communication: By planning sufficiently before the ship’s loading and unloading, you can take the necessary measures to ensure the process is completed quickly and efficiently.
– Monitoring and Control: When the ship is detained at the port, you can monitor the status of your cargo and ensure that the loading and unloading processes are completed accurately and efficiently.
Using the ShipsGo Container Tracking system for control will benefit you and your organization. See and track the status of your shipment.
Who Charges Detention Pay?
Now that you know what a detention fee is and why it occurs, you may want to which parties are charging this pay. Carriers charge detention to shippers, and truck drivers are paid any amount to make up for lost revenue.
Differences Between Detention Pay and Demurrage Cost
Demurrage cost and detention cost are both charges that can be incurred in shipping and logistics operations, but they represent different concepts and are applied in different situations.
Detention cost refers to the charges incurred when containers are held outside the port or terminal beyond the allowed time period. Detention charges are usually applied when the container is loaded.