🇺🇸United States

Delayed Collections from Disputed or Unsupported Detention/Layover Charges

3 verified sources

Definition

Because detention and layover billing relies on proving exact arrival, departure, and wait times, weak documentation often leads shippers to delay or reject payment until evidence is provided. Detention is described as “unpredictable and subject to unexpected delays,” making it a frequent topic of negotiation and dispute between carriers, brokers, and shippers.[2][3][7][8]

Key Findings

  • Financial Impact: Carriers that wait 30–60 days longer to collect on a meaningful share of accessorial revenue tie up working capital; for fleets where accessorials represent several percent of revenue, this can mean hundreds of thousands of dollars carried in AR at any time (estimated based on typical receivables profiles; sources emphasize unpredictability and dispute‑proneness but do not quantify AR days).
  • Frequency: Weekly
  • Root Cause: Manual time‑tracking (paper bills of lading, driver notes) and inconsistent application of the 2‑hour free‑time standard create frequent disagreements on billable detention hours, forcing back‑and‑forth verification before payment. Some shippers resist or heavily audit detention/layover charges, extending payment cycles.[3][7][8]

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting Truck Transportation.

Affected Stakeholders

Accounts receivable teams, Carrier finance and treasury, Freight brokers, Shipper AP departments, Drivers (who may not be paid until carrier is paid)

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Unbilled or Under‑billed Detention and Layover Charges

Industry‑wide, DOT has estimated driver pay losses of about $1 billion or more each year from detention that is not fully compensated; individual fleets that under‑bill by even 1 unpaid hour per truck per week at ~$75/hour can easily lose $300,000+ per year on a 100‑truck fleet.[4][5][7]

Idle Equipment and Labor Cost from Poor Detention/Layover Recovery

For a carrier with 50 trucks losing 2 uncompensated detention hours per truck per week at ~$75/hour, the cost overrun is roughly $390,000 per year in unrecovered operating expense.[4][5]

Incorrect Accessorial Calculations Causing Disputes and Re‑work

For a mid‑sized carrier issuing thousands of loads per month, even a 5–10% rate of accessorial disputes that require 15–30 minutes of back‑office and sales time per dispute can easily equate to tens of thousands of dollars per year in labor and write‑offs (estimated based on typical dispute handling costs; exact amounts not given in sources).

Lost Trucking Capacity from Excessive, Poorly Compensated Detention

For a 100‑truck fleet experiencing an average of 1 extra hour of detention per truck per day at an $80/hour opportunity cost, the lost capacity value is roughly $2.4 million per year (300 days × 100 trucks × $80/hour × 1 hour).[4]

Regulatory Risk from Excessive Detention Impacting Hours‑of‑Service

HOS violations can result in fines and out‑of‑service orders; where detention routinely pushes drivers toward their duty limits, fleets risk recurring penalties and lost utilization when drivers are placed out of service (loss amounts depend on violation frequency; sources document the systemic nature of detention as an HOS‑related concern but do not quantify specific penalty totals).

Padding or Suppression of Detention/Layover Time Records

For shippers, even 0.5 hour of padded detention per load at $75–$85/hour across thousands of loads can mean hundreds of thousands per year in excess accessorial spend; for drivers, suppressed detention claims contribute to the DOT‑cited $1 billion+ in driver pay lost annually due to uncompensated detention.[4][7][8]

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