The pandemic-induced lockdown, dynamic geopolitics and economic conditions have led to shipping delays and port congestion, leading to an escalation of Demurrage & Detention costs for importers.
Demurrage relates to cargo, which is still in the container, while detention refers to the equipment (the actual box) that is empty after unpacking or before packing. As per the research, Demurrage & Detention charges varied by $190 per TEU on average across the 20 biggest global container ports. Costs usually arise due to several reasons including transactional errors, late document submission, lack of knowledge and illegal practices.
For those importers who have a geographically spread supply chain, these Demurrage & Detention (D&D) costs can be staggering. But technology could help minimize D&D charges. Here is how:
Provide visibility into your supply chain
Automate processes to reduce human error
Have the right documents
Obtén información de un experto de la industria
Maintain clear lines of communication with all key stakeholders
Keep backup transport in place
Be prepared for exigencies
Partner with a global logistics player
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