Detention fee management is one thing, but intermodal detention fee management is where things can get tricky. The detention fee clock with some providers may start ticking when the driver carrying your container exits the railroad ramp or port. Whether it hits traffic on the way there or experiences wide open roads can make it difficult for teams to understand how much free time is truly left when a container arrives to be unloaded. This can result in surprise detention fees when the container is finally returned. If your logistics facility expects to have 48 hours to handle the container but six hours of it was spent in the truck, you really only have 42 hours to work with.
These fractional detention situations can wreak havoc on a supply chain budget because they are seemingly small compared to the larger daily detention fees. But imagine if 1,000 containers stayed at their facility 6 hours past their free time a week due to misinterpreted free time standards — that’s $25,000/week in additional detention fees and $1,300,000 in annual fees just by simply not understanding how much time is left on the clock.
Reining in runaway detention fees is an effective way of shoring up supply chain spend. A big factor in managing fractional detention is understanding the time it took for a container to make its way from the port or railroad ramp to your gate. Did they hit traffic? Was there a storm? Did the driver have a breakdown? These common scenarios can add hours to transit that you weren’t expecting.
Sometimes, detention is necessary for business. Your needs might dictate that you prioritize other containers to avoid a shutdown or fulfill a high-value outbound PO.
What isn’t necessary is letting excess fees grow without warning. Helping your teams regain control over detention fee management and prioritizing business needs helps you create a system that guarantees reductions in supply chain spend while maintaining full autonomy over what freight to prioritize. Finished with that hot load? Have teams immediately turn to servicing containers that are about to incur fees.
A supply chain isn’t a “go-it-alone” environment. Make sure you’re tapping into the right resources that can work alongside you and put control back in your hands.
Want to learn more? With nearly 500 active sites globally, FourKites is an expert at helping shippers understand the challenges their businesses face and analyzing end-to-end processes to help shape solution design for your yard. With no two yards being the same, it’s important to have a consultative partner who can help personalize your investment.
