How to reduce D&D costs for effective supply chain management

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: