{"id":2364,"date":"2020-06-01T17:46:14","date_gmt":"2020-06-01T17:46:14","guid":{"rendered":"https:\/\/quicktransportsolutions.com\/blog\/?p=2364"},"modified":"2020-06-01T17:46:16","modified_gmt":"2020-06-01T17:46:16","slug":"the-real-deal-behind-truck-driver-detention-and-how-to-combat-it","status":"publish","type":"post","link":"https:\/\/quicktransportsolutions.com\/blog\/the-real-deal-behind-truck-driver-detention-and-how-to-combat-it\/","title":{"rendered":"The Real Deal Behind Truck Driver Detention and How to Combat It"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">The transportation industry is fresh off its highest peak in more than 10 years. As great as that may sound, it uncovered a difficult capacity problem. When bumping into the upper limits of what carriers can handle, the easy thing to do is throw more money at the problem. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">                                                                              <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, when the market comes back to earth, carriers will\nbe stuck holding the bill for surplus resources and find themselves facing the\nnew challenge of cutting costs. Fortunately, there is a better way forward.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What Does the Data Say?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Data shows significant inefficiencies in the way carriers do\nbusiness. Studies conducted over and over for the last two decades tell us\ndetention plays a major part across a variety of critical industry issues.\nCombating detention by understanding its impact on driver safety and retention,\nworking with shippers and drivers to remedy the problem, and looking to smarter\ndetention management solutions to alleviate bottlenecks can lead to a\nwin-win-win for all involved.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s simple economics. As demand rises and supply dries up,\nthe market discovers a new equilibrium. Looking at freight volume in the United\nStates after the Great Recession bottomed out in 2009, a regular pattern\nemerges where volume rises every year, only to fall as the calendar turns over.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Logistically, this sort of predictability is fantastic. Motor\ncarriers can prepare for both the high and low tides. However, there has been a\nremarkable deviation in this pattern since the latter part of 2017. The market\nnever let up. Instead of the usual dip, freight volume peaked in June 2018 to\nits highest point since 2007. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In all, the Cass Freight Shipments Index indicates a 30\npercent swing in volume over a 16-month period ending in June 2018.\nPredictably, carriers hit capacity and rates took off: the Cass Freight\nExpenditure Index rose 31 percent over the corresponding period as a result.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As demand bumps up against trucking company capacity,\nshippers turn to the spot market to address their needs, which also has the\neffect of significantly increasing rates. The spot market is very near-term. A\nshort run of events can increase spot rates 20 percent to 30 percent above\ncontracted rates on any given day.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>How Volatility Hurts the Bottom Line<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">High levels of volatility can really hurt shippers\u2019 bottom\nlines. It takes a long time for asset-based carriers to see significant gains\nas operating ratios (OR) drop. Looking at OR over the last year, they dropped\ninto the mid-80s \u2014 the lower the better, which is almost unheard of. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Railroads can operate down in the 50s and 60s because of the\nmore consistent operating structure. Carriers do not have this amount of\nconsistency. Anytime the market begins to surge, carriers can\u2019t always take\nsignificant advantage of it right away. Detention rates don\u2019t usually increase\non the same level as carrier rates, especially on the spot market. And if they\naren\u2019t careful, trucking companies can lose a lot of money.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Take the Los Angeles market as one example. It was one of\nthe hottest markets last year due in no small part to the impact of tariffs. There\nwere a lot of inbound containers coming from China. Everyone was trying to get\ninventory into U.S. warehouses before they were charged an extra 20 percent to\n30 percent just to get it there.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Los Angeles market is already quite congested, averaging\nabout 12 percent less utilization (in terms of hours of service) than the rest\nof the country. Every bit of that 12 percent equates to money lost. With an\ninflux of freight moving in, fleets can\u2019t scale up fast enough to manage these\nsurges. The systems in place are designed to manage an average level of volume\nbased on year-over-year trends.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With the convergence of factors that lead to a volatile\nmarket, utilization must be maximized. In 2018 the average load paid $2.03 per\nmile at its peak, not accounting for fuel. The average length of haul was\napproximately 550 miles, or about one day of transit. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Data indicated an average of 3.73 loads per truck per week.\nThe remaining 1.27 more loads per week possible then amounts to $1,417 left on\nthe table per week. A mere 10 percent increase in utilization at this rate\nwould amount to another $141 per truck, per week. These are big differences. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What\u2019s the Takeaway?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The takeaway: the market is inefficient. It\u2019s already\nsaturated with motor carriers, and even if capacity were expanded, a\npredictable cooling phase is likely to come reversing all growth measures. The\nextra capacity leads to excess cost, rates sink, and the industry then needs to\nretract.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Trucking companies now have the leverage to go back to these\nshippers that got dinged in late 2017, 2018, and say listen, the market was\nsuper-hot, but it has cooled off now, and we don\u2019t want to get into a situation\nwhere it\u2019s back and forth. A long-term management strategy including things\nlike detention can really make a big difference to the bottom line.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A \u201cgood day\u201d for a driver included 7.3 hours on the road on average out of a possible 11 hours of available drive time. After the HOS changes, \u201cgood\u201d days shrunk to only 6.5 of a possible 14 hours on the road. That\u2019s more potential drive time, yet less actual. Needless to say, there are significant hours being left on the loading deck.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">                                                                              <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s often left up to carriers to solve the detention issue.\nThe problem is that when you leave it up to the carrier, it conflicts with the\nGolden Rule of Customer Service: \u2018The customer is always right.\u2019 Can a motor carrier\nrealistically tell a customer he or she is wrong when the carrier wants to\nmaintain its hold on a lane or freight contract?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Detention permeates to every single item on the American\nTransportation Research Institute\u2019s (ATRI) annual list of \u201c<a href=\"https:\/\/truckingresearch.org\/wp-content\/uploads\/2019\/10\/ATRI-Top-Industry-Issues-2019-FINAL.pdf\">Critical\nIssues in the Trucking Industry<\/a>.\u201d By having a frank conversation between\ncarrier and customer, each issue of the day \u2014 from driver retention to\ninfrastructure to truck parking \u2014 could be positively effected through the lens\nof addressing detention.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While potential changes are on the horizon for HOS rules and\nsleeper berth flexibility, no one can predict if or when that may happen. The\nadverse effects of the government shutdown or the realigned Congress may delay\nthe passing of rules relief or budget for infrastructure improvements.\nAddressing manageable inefficiencies in detention is the most tangible a path\ntoward a solution right now.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What do Truck Drivers?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">What are the key factors that make \u201ccustomers of choice\u201d for\ntrucking companies? These shippers are mindful of safety, in-and-out time,\novernight parking, appointment flexibility, amenities, and employ pleasant\npersonnel \u2014 a list that echoes many of the same critical issues mentioned in\nthe annual ATRI study.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In one of the most famous scenes in the first Jurassic Park\nfilm, everything starts to go wrong for the main characters at the T-Rex\nexhibit. There, a chained goat awaits consumption, yet when the mighty T-Rex\nshows up, our heroes wonder why it doesn\u2019t feed on the restrained animal. One of\nthe characters reasons that the T-Rex probably doesn\u2019t want to be fed; it wants\nto hunt.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Could it be that drivers are much like that? They want to be\nrunning miles, to be productive. They don\u2019t want to be fed the smaller amounts\nof money for sitting and being detained. A lot become angry that they are being\npaid for detention. They just want to get out of that situation, get moving,\nand start being productive.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For this reason alone, motor carriers need to have that\none-on-one relationship with their truck drivers with open conversations.\nOtherwise, stress will build, which leads to accidents and turnover.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Things to Keep in Mind<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Trucking companies need to keep their lines of communication\nopen for immediate and timely reporting of any issue and should for any driver\nin the fleet. Once an issue reported, operations and safety people must work to\ndefine the issue and follow up with the driver by phone to clearly understand\nwhat\u2019s happening. Once the problem is clearly identified, it should be assigned\nto leaders for follow-up. Follow-up with the driver is maybe the most important\npiece.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It may start with a simple phone call. The company should maintain a portal where all existing issues and outcomes can be viewed by any driver. A common issue includes getting facilities included on locations where drivers are detained. Another is navigating the problem of having to leave shipping locations when drivers are out of hours due to the six hours rule \u2014 in which case the fleet advises its drivers to call in to ensure there are no incidents.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">                                                                              <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Considering the \u201csuper-hot\u201d market of late, what are\ncarriers in for next? Will the market continue to bump up against the capacity\nceiling, struggling to meet demand and further exposing inefficiencies? Or is\nit standing at the edge of a precipice, the natural fallout after any such\nascent? Only time will tell!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The transportation industry is fresh off its highest peak in more than 10 years. As great as that may sound, it uncovered a difficult capacity problem. When bumping into the upper limits of what carriers can handle, the easy thing to do is throw more money at the problem. However, when the market comes back &#8230; <a title=\"The Real Deal Behind Truck Driver Detention and How to Combat It\" class=\"read-more\" href=\"https:\/\/quicktransportsolutions.com\/blog\/the-real-deal-behind-truck-driver-detention-and-how-to-combat-it\/\" aria-label=\"Read more about The Real Deal Behind Truck Driver Detention and How to Combat It\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2364","post","type-post","status-publish","format-standard","hentry","category-trucking"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Real Deal Behind Truck Driver Detention and How to Combat It - Quick Transport Solutions Trucking Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/quicktransportsolutions.com\/blog\/the-real-deal-behind-truck-driver-detention-and-how-to-combat-it\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Real Deal Behind Truck Driver Detention and How to Combat It - Quick Transport Solutions Trucking Blog\" \/>\n<meta property=\"og:description\" content=\"The transportation industry is fresh off its highest peak in more than 10 years. 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