Adrian Gonzalez recently quoted Mike Mulqueen in his article "Appointment Scheduling API Standard: Will It Work With Paper Calendars?"
Driver detention is among the issues stemming from poor appointment scheduling processes. According to the “2021 Detention Time Survey” by the Owner-Operator Independent Drivers Association Foundation, “[OOIDA member drivers] who are complying with the 60-hour rule spend an equivalent of 20 to 33 percent of their possible compensated drive time in detention, while those under the 70-hour rule spend approximately 17 to 29 percent of their possible drive time in detention.”
In a January 2018 report, the U.S. Department of Transportation Office of Inspector General (OIG) estimated that “a 15-minute increase in average dwell time — the total time spent by a truck at a facility — increases the average expected crash rate by 6.2 percent. In addition, we estimated that detention is associated with reductions in annual earnings of $1.1 billion to $1.3 billion for for-hire commercial motor vehicle drivers in the truckload sector. For motor carriers in that sector, we estimated that detention reduces net income by $250.6 million to $302.9 million annually.”
In a July 2020 LinkedIn article titled “Detention in Trucking Why Carriers Care (And Shippers Aren’t Doing Enough) – Part Two,” Mike Mulqueen from JBF Consulting writes:
The explicit cost that a shipper sees for poor loading / unloading operations is in their detention accessorial fees. A shipper can easily sum up these costs as they are line items on their freight invoices. However, those fees do not represent the totality of the cost that the shipper is incurring.
When pricing out a long-term contract or a spot quote, carriers consider the total cost of servicing a shipper and will apply premiums for those customers that negatively impact their bottom line. While detention fees may be a rounding error for many large shippers, I would urge them to consider the premiums they may be paying through higher contract rates, higher tender rejection percentages, and an increased reliance on the spot market.
So, yes, appointment scheduling is a big problem that needs to be addressed.
Read the full article here
About Mike Mulqueen
Mike Mulqueen is a Partner and Strategy Practice Lead at JBF Consulting. Mike is a leading expert in logistics solutions with over 30 years managing, designing and implementing freight transport technology. His functional expertise is in Multi-modal Transportation Management, Supply Chain Visibility, and Transportation Modeling. Mike earned his master’s degree in engineering and logistics from MIT and BS in business and marketing from University of Maryland.
About JBF Consulting
Since 2003, we’ve been helping shippers of all sizes and across many industries select, implement and squeeze as much value as possible out of their logistics systems. We speak your language — not consultant-speak – and we get to know you. Our leadership team has over 70 years of logistics and TMS implementation experience. Because we operate in a niche — we’re not all things to all people — our team members have a very specialized skill set: logistics operations experience + transportation technology + communication and problem-solving skills + a bunch of other cool stuff.
Metafora, previously "CarrierDirect", is a business consulting and software development firm that exclusively serves the transportation, logistics, and supply chain space. Metafora partners with carriers, shippers, and freight tech vendors to help them optimize their business and build software to fuel their growth. Metafora+ is their partnership network for the thinkers, the leaders, the innovators in the logistics space.