Refer D-Time...reduction

NTHEWIND

Seasoned Expediter
We just got a letter from Carl Kiser telling us that Refer D-time will be reduced on both T-Val loads that use to pay around the clock and regular temp loads that use to pay 16 hours. They will both only pay 10 hours from 8:00 to 23:59. The reason, simply put, is to put us the same as other companies.

What I find interesting is something I just read in Land Line.

http://www.landlinemag.com/Special_Reports/2011/Feb/021711.shtml

I hope this link works.

One of the things I have noticed over the years, is that when customers are not charged for D-time they have no incentive to unload trucks.
 

layoutshooter

Veteran Expediter
Retired Expediter
I love the pay cuts. If the owner of the freight or FedEx is not willing to pay for the fuel we burn to protect the freight that freight must not be worth protecting. Maybe we should just shut down our reefers during the hours that they don't want to pay for.
 

ATeam

Senior Member
Retired Expediter
There is detention time and reefer detention time. Reefer detention time is best viewed in the larger context of reefer costs and benefits.

Regarding ordinary detention time, note that many of our customers are charged D-time as a matter of course. If we are delayed for a specified period of time in loading or unloading D-time charges kick in and contractors get their portion of that pay.

Whhile it is interesting that OOIDA is backing a D-time bill, I can't help but wonder that if detention costs are in the billions of dollars, as the bill advocates claim, why don't carriers and truck owners do like FedEx Custom Critical does and simply charge D-time to the customers who detain trucks?

Our first reaction when we read the letter about reduced reefer D-time was the instinctive, "Here we go again, money coming out of our pockets." But on further reflection, we don't think it will make much difference.

It has happened many times that we have spent the night at the consignee's dock with the reefer running, only to find out after we deliver the next morning that no reefer D-time was paid and none would be because the customer had negotiated that feature into the contract. It left us sore, and still does, that the unpaid time was not disclosed when the load was offered. The letter says reefer D-time is being reduced but for it to be reduced, it must be there in the first place.

It would be a welcome change if reefer D-time compensation was the same for all customers, or at least standardized between the carrier and contractors. Perhaps this letter is a step in that direction.

The costs and value of running a reefer are not straightforward. Sure, it costs a certain amount of money to buy the fuel the reefer burns, but how much does it cost really to run your reefer for eight hours while waiting to deliver? Do you count fuel only? Do you have a cents per hour figure in mind? On the flip side, how do you factor in the costs of having a reefer on your truck when the reefer is not being used at all?

When considering the reefer costs, consider also the benefits. Consider the numerous reefer loads we have done where the deadhead is double or triple the loaded miles. We take the run based on an all-miles calculation but are only running the reefer part of the time.

Consider the times when your reefer truck has been given a run to relocate it to an area where reefer trucks were needed while a dry truck was left sitting. You ran the reefer not a minute but it was the reefer that got you moving.

Consider the extra one percent of pay on every load, reefer or dry, that reefer straight trucks get paid.

On the down side is the new $16 per week cost of having a carrier-owned data recorder in our trucks. That fee is charged every week, whether you haul reefer freight or not. Consider that too.

All of this must be considered together. Before we join the predictable chorus about donating our reefer fuel overnight without compensation, Diane and I are thinking about about the many times our reefer improved our circumstances without even being run.
 

layoutshooter

Veteran Expediter
Retired Expediter
I understand that Phil, with any luck it will balance out. It cost us a LOT last year. One trip we spent 3 days running our reefer when the road was closed and we could not move. (NO additional pay) Several times we would bring our reefer down, or up, to temp, sit for several hours and then had the load cancel. (dry run pay only)

There SHOULD be some kind of rate that is paid the entire time the reefer is running. Fuel is not going down, that is driving costs up. While we have yet to reach that point where it is no longer worth the effort we are headed in that direction.

We also have to keep in mind the CARB garbage. I wonder if it will end up like the speed limiter thing. Update or lose our status. I doubt if I could recover the costs on a reefer upgrade for CARB considering the age of my truck and how few reefer loads we run out there. Just something to think about.
 

ATeam

Senior Member
Retired Expediter
There is no telling how much a reefer CARB upgrade will cost or when because the rules keep changing. We will put it off as long as possible. If we had to upgrade today, it could be done by swapping out the engine. We looked into it. It is a $5,000 job.

It sounds like a lot but how many reefer loads have you had that paid over $5,000? We have had several. If and when the CARB rules take full effect, fewer reefers will be on the road which will increase demand for ours. The reefers left on the road will cost all truck owners more, raising the bid price of reefer work overall.
 

golftruck

Seasoned Expediter
Wendy and I had the same initial reaction that I am sure many of us had, but when we thought about it we realized that it is very rare for us to have more than ten hours of D-time. On any type of load, reefer or dry. We decided that it won't affect our bottom line much, if at all. However, we do wonder if the new D-time rates are going to apply to disaster relief loads where we can sit for days or even weeks.
 

layoutshooter

Veteran Expediter
Retired Expediter
There is no telling how much a reefer CARB upgrade will cost or when because the rules keep changing. We will put it off as long as possible. If we had to upgrade today, it could be done by swapping out the engine. We looked into it. It is a $5,000 job.

It sounds like a lot but how many reefer loads have you had that paid over $5,000? We have had several. If and when the CARB rules take full effect, fewer reefers will be on the road which will increase demand for ours. The reefers left on the road will cost all truck owners more, raising the bid price of reefer work overall.

We shall see. We too have had several loads that paid over $5000. I also know that I could give up all CA work and it would make little, if any, difference to my bottom line.

I am not sure that a $5000 investment on a truck that is 50% used up is worth it for the 2 or 3 reefer loads in CA. The old unit will still be legal in the other 48 states we have run in.
 

layoutshooter

Veteran Expediter
Retired Expediter
Wendy and I had the same initial reaction that I am sure many of us had, but when we thought about it we realized that it is very rare for us to have more than ten hours of D-time. On any type of load, reefer or dry. We decided that it won't affect our bottom line much, if at all. However, we do wonder if the new D-time rates are going to apply to disaster relief loads where we can sit for days or even weeks.

We had 5 days of reefer work without pay last year. Twice we were under load when roads were closed. The reefer still ran, fuel was burned, there is no additional pay to cover that.

I think the disaster stuff is payed for differently. We are NOT running any more of those loads unless we can leave prior to any storms hitting. We are NOT going through the kind of loss we had during Hurricane Gustov. I will not give up control of my truck again.
 

ATeam

Senior Member
Retired Expediter
I am not sure that a $5000 investment on a truck that is 50% used up is worth it for the 2 or 3 reefer loads in CA. The old unit will still be legal in the other 48 states we have run in.

The unit may not be legal in all non-California states as a number of states tend to follow California's lead. Also, I don't think FedEx Custom Critical will approve a TVAL reefer if it is not CARB legal.
 

layoutshooter

Veteran Expediter
Retired Expediter
The unit may not be legal in all non-California states as a number of states tend to follow California's lead. Also, I don't think FedEx Custom Critical will approve a TVAL reefer if it is not CARB legal.

That is a bad thing. So much for interstate commerce laws. If FedEx decides to put us out of business that way, so be it. I am TIRED of all of it. $5000, or more, on a truck that will already have close to 700,000 miles is not a wise choice. At least, not in my book. I guess that it is time for me to start investigating other carriers. I want to be prepared to jump if I have too. I know that FedEx would never miss us. Business is business. The model they seem to be moving into may not meet my model much longer.
 

ATeam

Senior Member
Retired Expediter
I guess that it is time for me to start investigating other carriers. I want to be prepared to jump if I have too. I know that FedEx would never miss us. Business is business. The model they seem to be moving into may not meet my model much longer.

Every expediter should investigate other carriers on an ongoing basis. Nothing is carved in stone in this business, not with carriers, not with drivers. Wise expediters keep their Plan B up to date.
 

layoutshooter

Veteran Expediter
Retired Expediter
Every expediter should investigate other carriers on an ongoing basis. Nothing is carved in stone in this business, not with carriers, not with drivers. Wise expediters keep their Plan B up to date.

LOL!!! Well Phil, wise is nothing that I ever been accused of! :p
You are correct. We should all be exploring the business all of the time. It is only smart.
 
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