Freight and Package Transportation Business Guide
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We documented 34 challenges in Freight and Package Transportation. Now get the actionable solutions — vendor recommendations, process fixes, and cost-saving strategies that actually work.
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All 34 Documented Cases
Systemic under‑billing and billing‑error write‑offs on detention & demurrage
$50,000–$500,000 per year for mid‑size shippers and NVOCCs (extrapolated from typical fee levels of $75–$300 per container per day and hundreds–thousands of annual containers)[2][3][6]Carriers and terminals frequently issue detention and demurrage (D&D) bills late, with incorrect parties, or with insufficient documentation, leading to customer disputes and negotiated write‑offs instead of full recovery. New FMC rules force strict content and timing requirements on D&D invoices; operational and system gaps mean many charges are never billed or are later waived to preserve customer relationships.
Runaway detention & demurrage fees from poor coordination
$150,000+ per incident for large shipments, with total annual D&D costs often reaching hundreds of thousands of dollars for active importers/exporters (illustrated by demurrage examples where a single shipment incurs $150,000 in charges)[5]Shippers regularly incur large and recurring D&D expenses when containers overstay free time at terminals or are returned late, because pickups, unloading, and returns are not tightly coordinated. With daily fees commonly $75–$300 per container day at major ports, multi‑day delays across many boxes create six‑figure annual cost overruns that provide no added value to the supply chain.[2][3][6]
Poor planning decisions from lack of visibility into D&D exposure
$50,000–$300,000 per year in avoidable D&D and related operational inefficiencies for active importers/exporters (inferred from fee ranges and recurrent excess dwell patterns)[2][3][5]Many shippers and logistics providers make routing, booking, and warehouse‑siting decisions without granular data on historical D&D costs, leading them to choose ports, carriers, or free‑time structures that look cheaper on base freight but cost more once chronic D&D is included. This mis‑optimization creates a recurring, hidden drag on network performance and margins.
Loss of equipment and terminal capacity from prolonged container time
Opportunity cost equivalent to losing multiple container turns per year per unit; with daily detention fees often only $50–$100, lost revenue from missed trips can exceed fee income by thousands of dollars per container annually[3][5]When containers are not picked up or returned on time, carriers’ equipment and terminal yard slots are tied up, reducing available capacity for revenue‑generating moves. D&D fees compensate partially, but they do not fully offset the opportunity cost of containers and yard space stuck in non‑productive dwell.