What Is Dwell Time in Freight and Shipping?

Dwell time is a critical logistics metric that measures how long cargo or transportation equipment sits idle at a terminal, warehouse, or port before it moves to its next destination. While often overlooked, high dwell time can indicate inefficiencies and lead to increased costs, delays, and reduced supply chain velocity.

In 2025, as global shipping continues to face capacity challenges, reducing dwell time has become more important than ever for businesses trying to keep goods flowing smoothly.

Understanding the Basics of Dwell Time

At its core, dwell time is the clock that starts ticking when a container, trailer, or shipment arrives at a transfer point—such as a port, rail yard, or warehouse—and stops once it leaves or continues its journey.

There are two key types of dwell time:

  • Port or terminal dwell time: How long a container sits at a terminal after unloading from a ship

  • Carrier dwell time: How long a truck or train waits at a facility before being loaded or unloaded

In both cases, the longer the dwell time, the less efficient the operation.

Why Dwell Time Matters

Extended dwell times can have ripple effects across the supply chain. For businesses and logistics professionals, the consequences often include:

  • Increased detention and demurrage charges

  • Limited equipment availability due to idle assets

  • Delays in inventory replenishment

  • Strained customer relationships due to late deliveries

  • Disruptions to just-in-time or lean inventory systems

On the flip side, reducing dwell time helps increase throughput, improve carrier satisfaction, and enhance delivery reliability.

Common Causes of High Dwell Time

Several factors contribute to dwell time issues:

  • Inefficient loading/unloading processes: Delays in labor, equipment, or scheduling

  • Customs clearance bottlenecks: Regulatory hold-ups at borders or ports

  • Poor appointment scheduling: Congested docks and missed time slots

  • Inaccurate documentation: Missing paperwork can stall container movement

  • Equipment shortages: Lack of chassis, forklifts, or drivers

Understanding what’s driving the delay is the first step toward solving it.

How to Reduce Dwell Time

Improving dwell time starts with better coordination and data visibility. Some effective strategies include:

  • Implementing real-time tracking systems

  • Streamlining dock scheduling with appointment software

  • Improving communication between shippers, carriers, and warehouses

  • Pre-clearing customs and paperwork to prevent hold-ups

  • Investing in automation at ports or fulfillment centers

While some dwell is inevitable, trimming even small amounts of idle time can yield significant gains over time.

Measuring Dwell Time Effectively

To manage dwell time, it must be tracked consistently. Many logistics teams measure it in hours or days, benchmarking against industry norms or service level agreements.

Key metrics might include:

  • Average dwell time per facility

  • Dwell time by carrier

  • Comparison of actual vs. planned dwell time

These insights help pinpoint operational bottlenecks and inform continuous improvement initiatives.

Final Thoughts

Dwell time in freight and shipping is more than a passive wait—it’s an active signal of where your supply chain may be stalling. By identifying causes, applying technology, and fostering collaboration between stakeholders, businesses can transform this idle time into an opportunity for greater efficiency and reliability.