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Efficient cargo management is crucial for businesses to maintain a competitive edge. Effectively handling demurrage, detention and storage ensures smooth operations, cost-effectiveness and customer satisfaction. These three aspects are not just industry jargon; they’re vital components that can make or break your supply chain. But how do you navigate these challenges efficiently?
Demurrage: Time is Money
Demurrage refers to the charges payable when cargo remains at a terminal or port beyond the allotted free time. It’s a penalty for the delay in picking up or returning containers. This fee is usually applied on a per-day basis, and it can quickly accumulate, significantly impacting your logistics costs.
Tip: Choose a freight forwarder with strong port and terminal relationships to reduce demurrage risks and costs.
Detention: Keeping Cargo Moving
Detention relates to the charges incurred when cargo containers are held outside the terminal or port for an extended period. This includes delays caused by factors such as customs clearance, inspections, or unforeseen disruptions in the transportation process.
Tip: Opt for a well-connected freight forwarder with expertise in minimising detention by collaborating closely with customs and other stakeholders.
Storage: Safeguarding Your Cargo
Storage charges come into play when cargo needs to be stored at a warehouse or facility due to various reasons, such as delays in transportation, insufficient space at the destination, or awaiting further distribution. These charges can vary depending on the duration and type of storage required.
Tip: Partner with a freight forwarder equipped with advanced technology for tracking and managing warehouse facilities.
Now that you’re familiar with demurrage, detention, and storage, if you have any further questions, don’t hesitate to reach out to our team for further guidance.
