Death by Dwell Time: The Hidden Costs Killing Your Freight Budget

You negotiated a solid freight rate. Your product moved on time. But then—bam—you get hit with a rail bill padded with fees you didn’t see coming: demurrage, switching, detention. What happened?

Welcome to the world of accessorial charges, where freight doesn’t just cost what you agreed to—it costs what you don’t manage.

What Are Accessorials?

These are the extra fees railroads and transloaders tack on for things like:

• Demurrage: When your railcar sits too long at a facility.

• Switching: Moving cars within a terminal or between tracks.

• Constructive Placement Fees: When a railroad "delivers" your car without actually placing it.

  
  

These charges can range from $75 to $200+ per car per day—and they add up fast. Multiply that by 10 cars stuck over a weekend and you’ve burned thousands for zero value.

Why It Happens

• Poor Coordination: If trucks aren’t timed right with railcar arrivals, dwell time increases.

• Lack of Visibility: No real-time tracking = no chance to react quickly.

• Operational Gaps: Facilities without clear unloading plans or accountability lose precious hours—and pay for it.

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The Financial Impact

Accessorials often go unnoticed until they show up on the invoice—and by then it’s too late. Over a year, they can quietly eat 5–10% of your total freight spend, especially for companies moving frequent or high-volume carloads.

How an Expert Saves You Money

A rail logistics consultant helps you:

• Audit and identify recurring accessorial charges.

• Build a playbook to reduce dwell time and improve switching schedules.

• Set up alert systems to track and respond to service windows in real-time.

• Negotiate terms and develop SOPs with transload partners to avoid penalties.

  
  

The rail rate isn’t the whole story. If you’re not managing the full lifecycle of your shipment—from arrival to unloading to release—you’re leaving money on the tracks. With the right visibility and support, you can stop bleeding cash and start turning rail into a true supply chain asset.