In the world of freight forwarding, there’s a term that logistics professionals have likely heard many times: detention.
Detention is a process that occurs when a transport vehicle is unable to pick up a shipment or deliver goods at the scheduled time. This usually happens due to delays or errors made by the logistics service provider. In the logistics industry, detention is one of the challenges that must be addressed.
We’ll discuss detention in more detail in this article, so be sure to read it all the way through.
What Is Detention?
When detention occurs, the fees charged to the logistics service provider usually include late fees, maintenance fees, recovery fees, or other charges levied on the relevant party. These fees are typically passed on to the customer or the party receiving the delayed goods. Most detention fees are also charged to the logistics service provider to cover the incurred costs.
To reduce the risk of detention, some logistics service providers have developed various techniques to improve efficiency and reduce costs. For example, these techniques may include real-time vehicle monitoring, delivering goods immediately after shipment, streamlining the shipping process, and developing better systems.
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However, to mitigate the risk of detention, some logistics service providers also establish terms of use that must be adhered to, such as delivery deadlines, shipping delays, and other conditions. This is crucial to ensure that vehicles or shipped goods arrive on time.
Detention is a common issue in the logistics industry. Although there are various techniques that can be used to reduce detention costs, shipments can still be delayed due to delays or errors made by logistics service providers. Therefore, it is important to take various measures to prevent detention before it occurs.
In the world of freight forwarding, monitoring is essential for these types of issues; fortunately, in today’s world, there is software available that can monitor all of these activities.
Yes, Oaktree makes it easy for freight forwarders in Indonesia—and even abroad—to monitor, track, and do much more.