🇺🇸United States

Poor planning decisions from lack of visibility into D&D exposure

4 verified sources

Definition

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.

Key Findings

  • Financial Impact: $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]
  • Frequency: Quarterly
  • Root Cause: D&D charges are often tracked in separate billing systems or spreadsheets and not integrated into lane‑level profitability analytics; yet they can be substantial, with demurrage and detention commonly $50–$300 per day and varying significantly by port and carrier.[2][3][5][6] Without consolidated visibility, planners underestimate the total landed cost of using congested ports, short free‑time contracts, or remote warehouses that lengthen the unload/return cycle, locking the organization into costly patterns.

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting Freight and Package Transportation.

Affected Stakeholders

Network design and supply chain strategy teams, Procurement and carrier selection managers, Logistics analysts and data teams, Warehouse/inventory network planners, CFOs evaluating total landed cost

Deep Analysis (Premium)

Financial Impact

$30,000–$100,000/year in avoidable D&D; potential budget overrun • $30,000–$100,000/year in D&D with no prevention mechanism • $30,000–$100,000/year in excess D&D; significant percentage of total freight budget

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Current Workarounds

Accepts broker's quote; pays D&D when it arrives; no mechanism to provide feedback to broker; same vendor used due to relationship • Annual contracts with preferred carriers negotiated without D&D history; ad-hoc renegotiation only when bills spike; manual lane analysis in regional spreadsheets • Freight audit firms flag D&D overages post-hoc; manual spreadsheet reconciliation by distribution center; renegotiation with carriers happens once yearly

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

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]

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]

Disputed detention & demurrage charges and rework

$5,000–$50,000 per month in staff time and concessions for a mid‑size forwarder or carrier (inferred from FMC‑mandated 30‑day dispute/mitigation process windows and typical per‑day charge levels)[1][2][3]

Delayed cash collection due to contested D&D invoices

$20,000–$200,000 in outstanding D&D receivables at any given time for medium carriers/NVOCCs (scaled from high per‑day fees and the 30‑day mitigation window plus negotiation cycles)[1][2][3]

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]

Regulatory exposure and penalties over non‑compliant D&D billing

Individual FMC enforcement actions can reach into the millions of dollars in refunds and penalties across billing categories; D&D is a specific focus post‑OSRA‑2022 (risk level inferred from the Act and rule‑making focus on billing fairness).[1]

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