Why should halting or detention charges be higher?

In the fast-paced world of logistics in India, truck drivers are essential in ensuring products reach their destinations on time. However, they face a significant challenge known as "detention charges." This blog will delve into the impact of these charges on truck drivers, illustrated with a real-time example of a 32 Ft MXL truck making a round trip from Chennai to Bangalore.

What does detention charges mean?

In the logistics industry, detention charges refer to fees incurred when a truck is delayed at a loading or unloading point beyond the allotted free time. These charges are significant in India’s fast-paced transportation sector, as they directly impact the earnings and schedules of truck drivers.

Understanding detention charges is crucial for efficient logistics management and ensuring timely delivery of goods, especially on busy routes like the Chennai to Bangalore corridor.

Why Detention charges Matters?

Let's break down why waiting time is such a problem. Imagine a truck making a round trip from Chennai to Bangalore, covering 800 km. The rates for this route are as follows:

• Chennai to Bangalore Trip Rate: ₹24,500
• Bangalore to Chennai Trip Rate: ₹16,000
• Total Round Trip Rate: ₹40,500

However, there are expenses associated with this trip. Let’s break them down.

Based on the above expenses, a truck owner can approximately make ₹9,300 on a Chennai-Bangalore round trip.

To keep operations running smoothly and to pay EMIs, a truck owner needs to complete at least 2 trips every week. Let's explore the best and worst-case scenarios:

Ratings

Good

Average

Bad

Weekly Rounds trips

2.5

2

1.5

Weekly earnings

23250

18600

13950

Monthly Trips

11

9

7

Monthly earnings

102300

65100

7

EMI

70000

70000

70000

Balance Amount

32300

13700

-4900

Completing 2 round trips in a week is typically achievable. However, the challenge of detention makes it difficult to even complete one round trip on time.

Understanding the Core Issue

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.

Conclusion

Detention charges might seem minor, but they significantly impact truck drivers and their companies. By addressing this issue and advocating for fair compensation, we can improve conditions for everyone in the logistics industry. At Truckinzy, we’re dedicated to making positive changes and ensuring a better future for our truck drivers.