Stop Throwing Cash Overboard: How to Avoid Demurrage and Detention Fees

Posted by Kelsey Barker on Fri, Mar, 9 2018 @ 9:06 AM

Chances are, you’re not the only one looking to reduce demurrage and detention fees. Recently, a coalition of shippers, freight forwarders, and intermediaries urged US maritime regulators to make it easier to challenge congestion-related fees that container lines and marine terminals impose for delays that were out of their control. Terminals responded that it would cause chaos at the ports. Just this past Monday, the Federal Maritime Commission (FMC) voted unanimously to investigate further the concern of the coaltion, a welcome validation for shippers in the wake of ever-increasing volume, labor disputes and port congestion.

The FMC will discuss whether policy is needed to prevent what the coalition of shippers deemed “unfair” assessment of free time-related fees. While detention and demurrage fees have rarely been light for importers, recent instances of extreme port congestion – such as the aftermath of liner carrier Hanjin Shipping’s sudden bankruptcy, or the West Coast longshoreman’s strike in 2014 and 2015 – have exacerbated the issue. And container volume continues to rise faster than port terminals can expand.

Of course, importers and exporters will continue to rack-up large fees while the FMC slowly deliberates. But demurrage and detention fees are more than just a “cost of doing business”; they often trigger a ripple effect that throws exception into the planned supply chain flow. These exceptions lead to additional costs that add up. While many freight managers accept them as a line item, they have a detrimental impact of the bottom line.

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Topics: Transportation Management, Freight Forwarder Collaboration, Landed Cost Calculation, Contract & Rate Management, Carrier Selection & Booking, Invoice Management

Controlling Shipping Costs via Multi-Modal Freight Rate Visibility

Posted by Gary M. Barraco on Mon, Jan, 15 2018 @ 1:30 PM

Amber_Road_Multi_Modal_Transportation_Mangagement.pngThe Amazon disruptive effect has put an ever-growing strain on supply chain professionals to ensure inventory availability across a broader network of distribution points, along with the capabilities to get product to the consumer in days - if not less. This weight bears down on every step of the shipment process to ensure reliability and accuracy. Smart logisticians are properly orchestrating the fastest and cheapest means of moving goods from factory to consumer. But it isn’t simple....

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Topics: Invoice Management, Carrier Selection & Booking, Contract & Rate Management

Upcoming Webinar: Are You Prepared for the SOLAS Container Weight Rule?

Posted by Colleen Bush on Fri, Jun, 24 2016 @ 9:00 AM

July 1 is the day of reckoning for millions of global supply chain stakeholders as the SOLAS Verified Gross Mass (VGM) rule goes into effect. Are you prepared to comply with the new regulation?

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Topics: Invoice Management, Contract & Rate Management, Transportation Management

Best Practices in International Logistics

Posted by Colleen Bush on Thu, Aug, 20 2015 @ 1:47 PM

In this era of globalization, it’s no surprise that companies are moving their operations to low cost suppliers. However, many of these organizations are finding that higher than expected transportation expenses end up outweighing the benefits. In fact, according to Aberdeen Group research, international shipments cost twice as much, take five times as long and have five times more variability than domestic shipments.

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Topics: Invoice Management, Rate Management, Contract & Rate Management, Transportation Management

ITMS Benchmark Study: Technology Meets the Challenge of an Unanticipated Freight Volume Rebound

Posted by Emily Thornton on Fri, Dec, 10 2010 @ 7:12 AM

American Shipper has released a new report, based on research gathered by a survey of nearly 300 transportation managers on their international and cross-border transportation management systems, best practices, and processes. ITMS Benchmark Study: Technology Meets the Challenge of an Unanticipated Freight Volume Rebound takes a look at how successful firms are managing international transportation, and looks for emerging trends that will develop in the near future.

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Topics: GTM Best Practices, Invoice Management, Contract & Rate Management, Carrier Selection & Booking, Transportation Management

Perry Ellis Streamlines Freight Auditing, Saves $300,000

Posted by Emily Thornton on Mon, Jun, 15 2009 @ 4:48 AM

Here's another feature article on Perry Ellis, who has been referenced in earlier posts. Prior to implementing a solution from Management Dynamics, Perry Ellis was manually auditing their freight bills, and significant over-charges were slipping through the cracks. According to their VP of Corporate Logistics:

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Topics: Invoice Management, Transportation Management

Change European Shippers Can Count On

Posted by Nathan Pieri on Thu, Nov, 13 2008 @ 3:08 PM

On October 17th all European – based conferences were disbanded. Deregulation of ocean shipping has finally come to pass and we are seeing early signs that beneficial cargo owners (BCOs) and logistics providers alike are scrambling to figure out how to manage transportation costing with a whole new level of rate volatility.

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Topics: Invoice Management, Transportation Management, Carrier Selection & Booking

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