πŸ‡ΊπŸ‡ΈUnited States

Poor Visibility into Demurrage Accrual Leading to Bad Planning

2 verified sources

Definition

Lack of clear data on free time, debit days, and carrier-specific rules causes shippers to misplan operations, incurring avoidable charges. Railroads and customers make suboptimal decisions on equipment release due to disputes over clock start/stop times. Improved audits and tools highlight prior deficiencies in visibility.

Key Findings

  • Financial Impact: $100 per day per idle railcar
  • Frequency: Daily
  • Root Cause: Varying free time durations and tariff complexities across carriers without standardized tracking.

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting Rail Transportation.

Affected Stakeholders

Operations Planners, Facility Managers

Deep Analysis (Premium)

Financial Impact

$1,500-$4,500 per month (15-45 motor vehicles Γ— $100/day, assuming 50% are incorrectly charged beyond free time) β€’ $100 per car per day baseline in excess demurrage and suboptimal equipment utilization, plus the cost of over-ordering cars to hedge against poor visibility. β€’ $100 per day per idle railcar

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Current Workarounds

Account Manager coordinated with DC operations via email; manual spot-checking of demurrage invoices; disputes rare because consumer goods companies often absorb charges as 'cost of doing business' β€’ Account Manager maintains manual records of railcar placement; yard operations provide verbal updates on loading status via phone; disputes submitted with photo evidence of weather/equipment delays β€’ Account Manager tracks tank car arrivals via email from facility operations; manual calendar reminders for free time expiration; disputed charges resolved by escalating to facility manager for 'proof' of delay

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Methodology & Sources

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

Evidence Sources:

Related Business Risks

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