How to cut demurrage, detention and port storage charges ?
Tracking down your containers can be a real nightmare. You need to visit different websites, log into separate systems, make calls and then write down all the information in a spreadsheet that is sent back and forth within your team. Not only this process is a time-consuming effort but you can miss key details. Charges like demurrage, detention and port storage can be a consequence of missing key information that cost a lot.
What are demurrage, detention and port storage charges?
Demurrage charges are assessed when containers are held at port or terminals beyond the allowed free days offered by the shipping line. Detention charges (also known as per-diem fees) are due when the container held outside the terminal for unpacking is returned to the terminal after the allowed free days period. Port storage charges are levied by the port for containers that have not been moved out of the port within a specified free-time. Port storage charges are collected for both full or empty containers within the port.
Demurrage and detention charges are charged by the shipping line or the trucker who owns the shipping container while port storage charges are collected directly by the port or via the shipping line.
Why demurrage, detention and port storage costs can be exorbitant?
Demurrage, detention and port storage costs vary according to shipping companies and ports. Average demurrage fees can reach $150 per container per day. The longer the cargo remains at the terminal, the more the rate increases. Average detention charges range is between $50-$100 per container per day. Port storage price can be up to 100 $. Having in mind that several containers are shipped at the same time and can wait several days at the terminal, you can easily double or triple the total transportation costs within a few days.
How Wakeo can help you control those costs?
- Real-time locations and status to be more proactive
Wakeo provides you up-to-date status information for all your shipments, on all your shipping line. With real-time data, you can make proactive decisions in case of schedule changes. Demurrage and detention dashboard will enable you to keep an eye on standing containers and take action before extra charges occur.
- Historical database help you to assess your free-time requirement
A reliable and objective database will help you to accurately measure the service level provided by your forwarders and your carriers compared to your free-time allotment. Analyzing your past performance will help you identify trends, request extended free-time and optimize your operations.
- Data science empower you to make strategic decisions
Data provided by Wakeo will enable you to have visibility on recurring delay in a specific port compared to the global industry and anticipate where to request extended free time. With a data analysis of the entire shipping industry at your disposal, you will be able to benchmark those costs, identify better opportunities and negotiate based on reliable data and specific needs.