Why should halting or detention charges be higher

In the fast-paced world of moving goods in India, truck drivers play a crucial role. They ensure that products reach their destinations on time. However, there’s a big challenge they face – it’s called “detention charges.” This blog will take a closer look at what this means and how it affects truck drivers, using a real-time example of a round trip from Chennai to Bangalore for a 32 Ft MXL truck.

 Halting or detention charges

Detention Charges Meaning

Detention charge is a compensation paid by shippers to the truck drivers who arrive at a place and have to wait to get loaded or unloaded. It might seem like a small problem, but it has a big impact on the money truck drivers make.

Why Detention Charges Matters

Let’s break down why this waiting time is such a problem. Imagine a truck making a round trip from Chennai to Bangalore which is 800 km. The rates in this lane are

  • Chennai to Bangalore Trip rate is ₹24500
  • Bangalore to Chennai Trip rate is ₹16000
  • So round trip is ₹40500

But, there are expenses associated with it. Let’s break it down 

ParticularsAmount 
Diesel cost (178L * ₹94)
{Truck Mileage = 4.5 KM/L
Diesel required = 800 /4.5 
= 178L
Cost Per Litre = ₹94}
₹16700
Toll cost ₹5000
Driver salary (15%)₹6500
Misc.₹3000
Total Cost31200
Trip Rate₹40500
Profit 9300


Based on above expenses a truck owner can approximately make ₹9300 in a Chennai Bangalore round trip.

Now, to keep things going, and to pay EMI a truck owner needs to do 2+ trips every week. Let’s see the best and worst case scenarios:

Ratings  Weekly Rounds tripsWeekly earningsMonthly trips Monthly earnings EMIBalance Amount
Good2.523250111023007000032300
Average2186009837007000013700
Bad1.51395076510070000-4900

2 Round trips in a week can be easily done. However, the issue of detention makes it tough to finish even one round trip.

Getting to the Heart of the Problem

The bigger issue is that some shippers and companies use trucks like temporary warehouses. They pay very little (around 1000 for more than 24 hours) for the time the truck spends waiting. It’s time to change. One such way is by calculating monthly EMI and driver’s salary, which should be around ₹3,000 a day. This would be a fairer way of dealing with waiting time.

Understanding Detention Charges at FR8

At FR8, we get it. We understand the challenges truck drivers face. While many shippers and companies might pay only ₹1,000 per day for detention, we pay higher as per the below slab for MXL:

Number of daysDetention charges per day 
Day 1 to day 2 1500
Day 3 to day 42000
Day 5 to day 6 2500
+ 7 days 3000

This is our way of recognizing the tough situation truckers go through. For better understanding, watch our latest video on this topic.

Conclusion

Detention charges might seem like a small problem, but it’s a big deal for truck drivers and the companies they work with. By talking about it and asking for fair compensation, we can make things better for everyone in the logistics industry. At FR8, we’re committed to making positive changes and ensuring a better future for our truck drivers.

Avatar
Yoga Laxmi
More posts

Similar Posts