Why Freight Forwarders Struggle with Demurrage & Detention Management

In our last blog, we unpacked the true cost of demurrage and detention (D&D) charges — from the direct financial hit to the hidden impact on cash flow, customer trust, and supply chain reliability.

The next logical question is: why do freight forwarders continue to struggle with managing these charges, despite knowing how damaging they can be?

The short answer is that the current way most forwarders handle D&D is reactive, manual, and inconsistent. In this article, we’ll dig into the main reasons why the industry is stuck in this cycle — and set the stage for how tools like CocoonDEM can change the game.

A World of Inconsistent Rules

One of the biggest challenges for freight forwarders is the sheer lack of standardisation.

• Every shipping line has its own tariffs, free time allowances, and escalation schedules.
• Every port or terminal applies different rules depending on geography, contracts, and even seasonal congestion.
• Free days vary widely — what’s five days in Rotterdam could be seven in Hamburg or three in Singapore.

This patchwork of rules makes it almost impossible to manage D&D consistently at scale. Forwarders often find themselves chasing answers from carriers or relying on outdated spreadsheets that don’t reflect the latest tariff changes.

Manual Tracking is Prone to Error

Many freight forwarders still manage demurrage and detention the same way they did a decade ago:

• Spreadsheets with container numbers, arrival dates, and deadlines.
• Emails or calls to carriers to confirm free time.
• Manual reminders set by individuals on their calendars.

This approach is slow, fragmented, and error-prone.

All it takes is one missed update — a delayed container release, a holiday period not accounted for, or a tariff escalation missed in the fine print — and the forwarder is hit with hundreds or thousands in unexpected charges.

Lack of Real-Time Visibility

Another problem is that D&D costs are often invisible until it’s too late.

Shipping lines usually issue invoices after free time has expired. By the time a forwarder or consignee sees the bill, the charges are already locked in.

This “rear-view mirror” approach means forwarders are constantly reacting to costs instead of preventing them. In an industry where margins are already tight, this reactive model leaves no room for optimisation.

Communication Gaps Across the Supply Chain

Freight forwarders sit in the middle of a complex chain of stakeholders:

• Carriers
• Ports and terminals
• Trucking companies
• Customs brokers
• Shippers and consignees

When communication breaks down — for example, a consignee not informed about free time expiring or a trucking company delayed in collecting a container — the forwarder is often the one left holding the bill.

Without a centralised system to coordinate deadlines and updates, D&D charges fall through the cracks.

The Human Factor

Let’s not forget the human element. Freight forwarders operate in high-pressure environments, juggling hundreds of shipments at once. Staff turnover, lack of training, or simple oversight can all contribute to missed deadlines.

When operations teams are firefighting every day, demurrage and detention management becomes a “back-burner” issue — until it’s too late.

Disputes and Administration Overload

Another struggle is the sheer amount of time wasted disputing D&D charges.

• Forwarders argue that containers weren’t available for pickup.
• Carriers insist the free time expired.
• Documentation is often missing or inconsistent.

These disputes take hours of back-and-forth emails, often with little success. Even when charges are reduced, the time and effort spent managing disputes drain resources from other parts of the business.

Why Spreadsheets Are No Longer Enough

To put it simply: spreadsheets cannot keep up with the complexity of modern logistics.

• They don’t update automatically with carrier tariff changes.
• They don’t send real-time alerts when free time is about to expire.
• They can’t generate customer-facing reports to show cost transparency.
• They rely on individuals to remember updates — leaving too much room for error.

For forwarders handling dozens or hundreds of containers, spreadsheets create more risk than control.

The Competitive Disadvantage

Customers today expect transparency. They want to know why costs occur, how they can be avoided, and what their forwarder is doing to protect them.

Forwarders who can’t provide this visibility risk losing customers to competitors who can. In fact, many shippers are now actively seeking forwarders who use digital tools to manage costs more effectively.

This makes D&D management not just a cost issue, but a competitive differentiator.

Technology is the Missing Link

So, what’s the way forward?

The truth is that freight forwarders struggle with D&D charges because they’re relying on outdated methods for a modern problem. The missing link is technology — specifically, platforms designed to track and manage these charges proactively.

This is where CocoonDEM comes in. Built for freight forwarders, CocoonDEM replaces manual processes with:

• Centralised visibility of all containers, deadlines, and tariffs.
• Real-time alerts before charges escalate.
• Clear reporting for both internal teams and external customers.
• Historical data analysis to identify recurring bottlenecks.

By bringing all of this into one platform, CocoonDEM turns D&D management from a reactive headache into a proactive advantage.

Don’t struggle with Demurrage & Detention

Freight forwarders struggle with D&D management because the system is complex, inconsistent, and still handled in outdated ways. But as the industry shifts towards digitalisation, those who continue to rely on spreadsheets and manual tracking will find themselves falling behind.

In our next blog, we’ll dive into How CocoonDEM Simplifies Cost Visibility — showing exactly how the platform transforms D&D from an unpredictable cost into a manageable, transparent process.