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Why you deserve $64/hour for detention

In 2012, a commenter posting as “Hammer Lane” here at OverdriveOnline.com offered $65 an hour as a fair rate to charge for detention as drive time tightened with hours and electronic logs. Turns out, that rate is very close to one calculated for the “Detention détente” feature using industry average benchmarks.

Related

Modest proposal: $65/hour, fair detention rate to protect small biz

A reader sees a need for mandatory detention pay to protect the small business trucking life from the continuing encroachment of big-business competition and government ...

At once, as shown in the small fleet detention-rate examples in the feature, there are different ways to skin the cat when it comes to setting rates for detention.

In recent Overdrive polling, readers indicated either total revenue per mile (38 percent) or profit/net income per mile + fixed cost per mile (45 percent) as appropriate benchmarks for detention rates.

The example here of a $64 hourly rate is what the latter could look like based on the average owner-operator business income and mileage numbers of independent owner-operator ATBS clients in 2014. Such one-truck independents made more than $60,000 in net income on 97,500 miles on average. Those clients’ average fixed costs (including truck and trailer payments, insurances and the like) are added in the second part of the calculation to be covered under the final rate.

Related

Detention détente: Tables turn in carriers’, drivers’ favor in pay/rate negotiations

The tables finally are turning, as examined in this multipart feature. Fleets and owner-operators, for years in a losing battle with brokers and shippers over ...

Just matching profit, or net income, in detention rates doesn’t fully cover owner-operators’ costs, says Todd Amen, ATBS president; including fixed costs makes for a more accurate compensation. In addition, but not part of the calculation below, you can add your average variable hourly costs to idle or run alternative climate-control devices.
Other approaches to detention offered by readers in recent times included the notion of offering customers discounts on the line-haul rate for expedited loading/unloading.

Other approaches to detention offered by readers in recent times included the notion of offering customers discounts on the line-haul rate for expedited loading/unloading.

Detention détente: Chance 2 Transport

“If you need a 10-hour break at the place you’re delivering, is a good place to go.” --C2T owner Rod Miller, who takes an ...


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