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.
Table of Contents
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
| Particulars | Amount |
| 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 Cost | ₹31200 |
| 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 trips | Weekly earnings | Monthly trips | Monthly earnings | EMI | Balance Amount |
| Good | 2.5 | 23250 | 11 | 102300 | 70000 | 32300 |
| Average | 2 | 18600 | 9 | 83700 | 70000 | 13700 |
| Bad | 1.5 | 13950 | 7 | 65100 | 70000 | -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 days | Detention charges per day |
|---|---|
| Day 1 to day 2 | 1500 |
| Day 3 to day 4 | 2000 |
| 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.
Yoga Laxmi
Sometimes English is just silly. That's what got me hooked on writing in the first place. Why on earth can't "grateful" be spelled "greatful"? Here's the thing, I love untangling the knots of language just as much as I love untangling the complexities of logistics. In my blog posts, I'll do both! No "greatful" mistakes here, just good info and a smooth journey through the world of shipping.
