Dwell Time Logistics: How the Electronic Bill of Lading Helps Reduce Delays

Dwell time in logistics slows everything down—eBOL helps speed it back up by eliminating paper delays and keeping freight moving.

In logistics, every minute counts—and dwell time is one of the biggest silent killers of efficiency. Whether trucks are idling in yards, drivers are stuck waiting for paperwork, or shipments are delayed due to administrative bottlenecks, traditional Bill of Lading (BOL) processes often worsen things. These delays don’t just frustrate drivers—they ripple through the entire supply chain, increasing costs, disrupting schedules, and dragging down productivity.

That’s where the electronic Bill of Lading (eBOL) comes in. EBOL helps cut dwell time at critical handoff points by digitizing and streamlining the exchange of shipping documents. The result? Faster turnarounds, fewer errors, and smoother logistics operations overall.

If your team still relies on paper-based workflows, now’s the time to consider how switching to eBOL can transform your yard operations and reduce dwell time logistics headaches for good. Let’s break down exactly how.

What is Dwell Time in Logistics

Dwell time in logistics refers to the time a vehicle—usually a truck or container—spends waiting at a facility before loading or unloading begins. This could be at a warehouse, distribution center, port, or yard. While a short pause may be expected, extended dwell time often indicates inefficiencies in operations, communication, or paperwork handling.

Excessive dwell time doesn’t just affect one shipment. It creates a ripple effect that impacts driver schedules, resource allocation, storage availability, and customer satisfaction. High dwell times typically mean increased detention charges, demurrage fees, and missed delivery windows for supply chain stakeholders. Minimizing dwell time is a critical performance metric across the logistics industry.

How to calculate dwell time?

Dwell time is usually calculated as the difference between the time a vehicle arrives at a facility and the time it departs—excluding actual loading or unloading time if that’s separately tracked.

Here’s a basic formula:

Dwell Time = Departure Time – Arrival Time

For example, if a truck arrives at 9:00 AM and departs at 12:30 PM, its dwell time is 3 hours and 30 minutes.

To get more actionable insights, many logistics teams break down dwell time by:

• Location (yard, port, dock door)
• Carrier or customer
• Shipment type
• Reason for delay (e.g., waiting for documents, no dock availability)

Yard management systems (YMS) and transportation management systems (TMS) often help automate dwell time tracking, giving you visibility into recurring bottlenecks and areas for improvement.

Why Dwell Time in Logistics Is a Costly Problem

Dwell time for logistics is a spider web of revenue death. That’s because the supply “chain” is connected in more ways than meets the passing eye.

According to the Owner-Operator Independent Drivers Association (OOIDA) 2020 Detention Survey, “Motor carriers lose approximately $250.6 million to $302.9 million in net income every year.”

Increased dwell time has the following negative effects:

01. Increased Costs Across the Supply Chain

Long dwell times may indeed be more costly than getting a ticket for loitering. Although there are many reasons why a dwell time may be longer than it should be, associated costs are typically the same for everyone:

1. Demurrage Charges. Once free time for unloading cargo passes, the demurrage charges begin. While from the outside, it may look like this is good for the yard, yard managers know better. Demurrage charges are nothing compared to frustrated carriers and shippers who can’t stay on schedule because there’s no room in the yard for them. This causes bottlenecks and further delays for everyone involved — money down the toilet.
2. Detention Charges. When increased dwell time means the shipper is using the carrier’s equipment past the agreed-upon date, detention charges start to stack up until the equipment is returned to the carrier. If the delay is the fault of the yard due to slow processing times, things could get extra sticky.
3. Per Diem Charges. If there is communication inconsistency for dwell times, some containers may not be returned to the container yard or port on time. This is a type of detention where a fixed rate is paid to the carrier who owns the containers.

Additional fees, such as storage charges, may also apply, driving total costs up even further.

02. Delayed Delivery

When the dwell time is longer than expected, the delivery will inevitably be delayed.

This is usually a breach of contract and could result in monetary loss and the business dropping the carrier. If the yard is at fault for these delays, chaos could ensue and the yard may lose money as the truth comes out about the dwell times.

03. Reduced Efficiency

No kidding. When things come to a halt, they come to a halt. The entire transportation network could be negatively impacted by unnecessary dwell time, leading to increased lead times, less productivity, and garbage for efficiency.

How to Reduce Dwell Time in Logistics with eBOL

A system that integrates an electronic Bill of Lading is a system that purrs like a well-tuned Ferrari.

So, how do you reduce dwell time? You do it by reducing the hiccups in the supply chain with visible, streamlined communication and operations. Manual processes can be automated while some steps can be entirely removed; and everyone will dance with joy because missing, inaccurate, and annoying handwritten BOLs will be a thing of the past. Yard managers should see an increase in productivity while carriers could save up to 1.3% of their current costs.

Updating to eBOLs has four major perks all aimed at reducing dwell time:

01. Faster Processing Times: A Key to Cutting Dwell Time in Shipping

Old-school paper BOLs can take days or weeks to process. Frankly, nobody has time for that. Within just a few minutes, shipping documents can be processed digitally using yard management software with an integrated eBOL system.

02. Real-Time eBOL Transmission Helps Reduce Dwell Time Trucking Bottlenecks

There is one thing worse than processing a Bill of Lading: waiting to get it.

Since an eBOL uses cloud-based software, transmission is in real time. Those who need to see shipping documents will have access without the wait. Drivers can send and receive an eBOL without leaving their truck, decreasing dwell time and increasing happiness for all.

03. More Accurate Documents = Less Container Dwell Time

Dirty BOLs (in some cases) are worse than not having a BOL at all. That’s because corrections and adjustments can eat up time and money. Not to mention the time it would take to resubmit a correct BOL. An electronic Bill of Lading provides increased accuracy and easier corrections if necessary.

04. Ditching Paper BOLs Helps Lower Storage and Container Dwell Time

Storing BOLs can be a real issue, especially if drivers and shippers are delayed, and the yard must shift through a slog of backlogged paperwork. This can have a massive impact on reducing costs.

According to a report from Safety4Sea, “Switching away from the transfer of physical paper bills of lading could save $6.5 billion in direct costs for stakeholders, enable $30-40 billion in annual global trade growth, transform the customer experience and improve sustainability.” If the other three reasons aren’t enough, ditching wasteful paper files while increasing your cold, hard (and green) cash should tip the trucking scales in favor of eBOLs.

An Electronic Bill of Lading the Vector Way

Not all eBOLs are created equal—and when it comes to reducing dwell time in logistics, choosing the right solution can make a measurable difference. Vector’s electronic Bill of Lading is built directly into our Yard Management System, giving you real-time visibility, faster document processing, and smoother communication between facilities, drivers, and carriers.

Our eBOL solution eliminates the delays caused by paper-based BOLs, helping streamline check-ins, reduce detention and demurrage fees, and boost overall yard efficiency. Whether managing a high-volume distribution center or coordinating carrier pickups across multiple sites, Vector makes it easier to keep freight moving and optimize operations.

Ready to take control of dwell time logistics and leave paperwork delays behind? Try Vector’s eBOL solution and see how simple better logistics can be. Request your free trial today.

Frequently Asked Questions:

• What is dwell time in a warehouse?
  Dwell time in a warehouse refers to the total time a truck, trailer, or container spends at the facility before loading or unloading begins. High warehouse dwell time often indicates inefficient scheduling, limited dock availability, or slow paperwork processing—issues that can lead to delays and increased costs across the supply chain.
  
• What is dwell time in transportation?
  In transportation, dwell time measures how long a vehicle remains idle at a specific location—such as a yard, port, or warehouse—before completing its delivery or pickup. This downtime negatively affects asset utilization, driver productivity, and on-time performance.
  
• Why is dwell time necessary in logistics?
  Dwell time is a key performance indicator (KPI) in logistics because it directly impacts operational efficiency, carrier satisfaction, and overall supply chain flow. Excessive dwell time can result in detention and demurrage fees, strained customer relationships, and reduced throughput in yards and facilities.
  
• What causes high dwell time in logistics?
  Common causes include:
  • Manual paperwork processes (like paper BOLs)
  • Inaccurate scheduling
  • Limited dock space
  • Poor communication between carriers and facilities
  • Missing or incorrect documentation