If it’s sat still, engine off, then the only cost to the company would be the drivers wage. Companies like to be kept informed of delays usually so they can charge demurrage, which is an amount of money that the vehicle would be earning if it was doing its usual work. Demurrage charge is normally £30-60 per hour depending on the type of work.
Standing costs:
Insurance (vehicle, staff, public liability etc)
Depreciation of vehicle/trailer and equipment
Repair and maintenance contract(s) for vehicle, (main dealer, tyres etc)
Wages and other associates costs for the driver, and back room staff.
Loss of profit due to having money ■■■■■■■ in assets, items in stock (fuel, spares, etc)
Rent/business rates for yard, warehouse and offices
Bank charges (overdraft facility, business loans etc)
And by no means finally … Loss of income
coz if the wheels ain’t turning, it ain’t earning
You are potentially looking are a business having already spent several thousand pounds each week even before they unlock the gates on a Monday morning for you to start work
Stobarts said it costs them £50 ph to sit a truck , the job I’ve done this week has been 5 hr days apx , so truck stands for 19 hrs per day , job I have next week is 17.30 start , Grantham - Swanley ( tri change ) - Grantham , so I’d guess 6/7 hrs ( boss at company says normal driver is back by midnight ) , truck is then parked upto 17.30 next day , if boss is correct that’s 17 hrs 30 parked up
Nb I did this job 15 yrs ago and starting at 17.30 I was always back by midnight , Grantham- - Heywood dist - Grantham , Grantham - downtowns glous- Grantham , Grantham - Willenhall - Grantham
Can’t see how they make it pay but there still doing it 15 hrs after I left first time so it must pay somehow
All, depends, if the truck is paid for, (no finance) then it’s drivers wages. If it’s financed up to hilt, on rental, trailer rented, you don’t want to be sat sitting, the old phrase, wheels ain’t turning it ain’t earning all the time.
Pierre is correct, theres an element of all the standing costs to take into account, which will be worked out with slight differences depending on how the truck is operated, ie is it parked up at night or is there a night man. I broadly agree with Sony’s £50.00.
Whilst Griffin is also right to a degree, as we bought our trucks outright, we still wanted a demurrage charge. We had brand new trucks and up to 10 year old. No point confusing the customer by having two systems
But as cookie says the main reason is that you can let the customer know there is a delay and that they may be charged demurrage.
For waiting on jobs we used to get £16 per hour after the first hour, as a driver I got 27% of that. For waiting x number of hours for a load if there wasn’t much work on we got nowt of course.