Delayed cash collection due to contested D&D invoices
Definition
Detention and demurrage bills are frequently held up by customers who dispute the charges or request mitigation within the 30‑day window, delaying payment and extending days‑sales‑outstanding on these ancillary revenues. While the cargo is often already released, the D&D component sits in A/R as ‘in dispute’ for weeks or months.
Key Findings
- Financial Impact: $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]
- Frequency: Monthly
- Root Cause: Under FMC rules, invoices must be sent within 30 days and billed parties have 30 days to request fee mitigation; carriers must then attempt to resolve within a further 30 days.[1] Each step introduces structured delay; disputes over free‑time entitlement, terminal congestion, and responsibility for delays keep amounts open, and many shippers refuse to pay D&D until reconciled, slowing cash conversion.
Why This Matters
This pain point represents a significant opportunity for B2B solutions targeting Freight and Package Transportation.
Affected Stakeholders
Accounts receivable managers, Credit & collections teams, Carrier and NVOCC finance managers, Customer accounts/payables teams at shippers, Legal/compliance for escalated disputes
Deep Analysis (Premium)
Financial Impact
$20,000–$200,000 in 3PL D&D disputes; resolution extends 90–120 days; 3PL disputes cascade to shipper • $20,000–$200,000 in 3PL receivables in limbo; 3PLs weaponize disputes to delay their own payment; resolution cycle 90–120 days • $20,000–$200,000 in A/R + unrecovered margin from undiscounted write-offs
Current Workarounds
AR Collector creates multiple email chains, cc's Billing, tracks responses manually, updates aging report weekly, calls 3PL for payment status • AR Collector escalates to Operations for terminal printouts, compiles PDF evidence package, sends via email, follows up bi-weekly • AR Collector manually receives dispute email, logs in shared spreadsheet, adds to aging report, sends reminder emails every 5 days
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Systemic under‑billing and billing‑error write‑offs on detention & demurrage
Runaway detention & demurrage fees from poor coordination
Disputed detention & demurrage charges and rework
Loss of equipment and terminal capacity from prolonged container time
Regulatory exposure and penalties over non‑compliant D&D billing
Opportunistic use of D&D as de‑facto storage or leverage
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