Why does dwell time matter in logistics operations?
Dwell time directly affects delivery times, storage costs and inventory availability. Cargo that sits at a port or terminal for days can trigger demurrage and detention charges, while vehicles waiting at a dock reduce the capacity of the fleet. Tracking dwell time helps businesses find bottlenecks and show where delays are occurring.
How does dwell time work in logistics?
The time of arrival at a location is recorded, usually by a scan or a gate system, and the time of departure is recorded when the goods or vehicle leave. The difference between these two times is the dwell time. Operators compare dwell time against target figures for each site and look for patterns, such as delays at specific docks, customs points or terminals.
Operations and locations where dwell time is tracked
- Sea port and container terminals
- Rail freight terminals
- Warehouses and distribution centres
- Loading docks and cross-docking sites
- Customs and border crossing points
- Inland container depots
- Airport cargo terminals
Example in practice
A container of consumer electronics arrives at the port of Piraeus, Greece on Monday at 06:00 from Shanghai. The container is unloaded from the ship, cleared by customs and collected by a drayage truck on Thursday at 10:00. Its dwell time at the terminal is three days and four hours. The importer’s logistics team reviews this against the terminal’s target of two days and finds that the customs inspection caused most of the delay, so it submits its documents earlier for the next shipment.