With the latest hours of service regulations, carriers try to optimize their route time and are as efficient as possible. Drivers often waste time at facilities or other destinations waiting for the freight to be loaded or unloaded. In some cases, this may take up to a few hours and is certainly not an efficient use of time. Shippers and carriers seek ways to reduce waste time and increase productivity, and one of the ways to do so is a drop trailer program.
A drop trailer is a simple process where a driver leaves your trailer at the facility for a period until another vehicle picks it up. The trailer can be already filled with cargo and be left at the intermediate facility or can be delivered empty to a shipper’s warehouse or distribution center. This method gives shippers more independence since they can load trailers independently.
Using a program can be beneficial for both shippers and carriers. Here are some key advantages to consider a drop trailer program:
You can incur charges when using the drop trailer method for delays or layovers. However, there are always ways to avoid these fines and streamline your shipping and supply chain process.
A layover fee is distributed when you leave your trailer overnight with an unprepared shipper. Even though the drop trailer is leaving your trailer at a facility, it can cause inconveniences along the way when a stay period is unexpected. The charge for this varies, usually starting at $250 and can go all the way up to $500.
A layover fee can easily be avoided by making sure your trailer is at the right place at the right time. If your stay is expected and you have everything planned out, then you are good to go and shouldn’t receive a layover fee.
To receive a detention fee, you would have to arrive with an unready shipment that will take longer than two hours to get ready. When a trailer has been held for too long that’s not ready, detention fees will start to come in. A detention fee also goes by the hour, starting at $50 and going to about $75.
You can avoid a detention fee by always having your shipment prepared when arriving at a facility. There is a chance of loss of revenue for companies that own the trailer, so make sure you don’t get involved with disrupting your sales and supply chain.
A drop trailer program is an excellent way to reshape your supply chain and can certainly offer many benefits to carriers. However, it is not suitable for every shipment. Depending on the freight type, trailer, destination, and time limits, the use and benefits of this program can differ.
After all, a drop trailer program can be an intelligent solution considering the hours of service regulations. Define whether you need this method for your specific shipping needs.
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