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The pandemic-induced lockdown, dynamic geopolitics and economic conditions have led to shipping delays and port congestion, leading to an escalation of D&D costs for importers. For those importers who have a geographically spread supply chain, these detention and demurrage (D&D) costs can be staggering. Demurrage relates to cargo (which is still in the container) while detention refers to the equipment (read the actual box) that is empty after unpacking or before packing.

As per the research, D&D charges varied by $190 per TEU on average across the 20 biggest global container ports. D&D costs usually arise due to several reasons including transactional errors, late document submission, lack of knowledge and illegal practices. Let’s take a look at how technology can help you minimise D&D charges.

Supply chain optimisation

Provide visibility into your supply chain

Visibility is key to reducing costs. From knowing where your container is during transit to monitoring progress from its point of origin to delivery, visibility can help you plan better.
Simple claim process

Automate processes to reduce human error

Oftentimes, errors creep in at the first instance itself when making a booking and this cascades down the supply chain. Go digital and get rid or reduce manual processes.
Document

Have the right documents

When you have an end-to-end logistics provider as a partner, your documentation is taken care of from the point of origin to delivery. This will help you expedite your clearance at ports and customs and address issues such as incorrect or absence of important documents.

Maintain clear lines of communication with all key stakeholders

Define responsibilities for each entity and have clear communications about expectations, documentation required at each stage and any change in delivery.
back up team

Keep backup transport in place

Choose an end-to-end partner that is transport-agnostic such as Maersk which can quickly choose the right intermodal transport for delivery.
Cycle process

Be prepared for exigencies

Technology can help you track the progress of your cargo throughout so any late release of cargo from destination due to bad weather or irregularities in the weak supply chain will not come as a surprise.
Visibility partner performance

Partner with a global logistics player

When you engage with vendors who don’t have a global presence everything from complying with (regional) regulations to logistics management becomes an issue. Hence, having a technology-backed logistics partner with a team of global experts and a worldwide presence can help you take advantage of having a geographically diverse supply chain.

Maersk’s Destination Supply Chain Management solution enables transparency throughout the journey. It provides complete visibility into all phases of the journey from the status of cargo to documentation needed and final delivery, thus creating streamlined communication between all entities along the supply chain. To know more check Maersk’s DSCM solution here.

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