Dedicated Drayage Management Minimizes Demurrage
Containers sitting idly at port terminals? The longer they stay, the more your business will spend on demurrage fees.
It has become painful enough to secure container transit across oceans and skies. But arrival at the U.S. mainland is far from the end of the journey – or, often, the headaches.
Upon arrival at U.S. ports, containers can get lost in the shuffle of terminal operations. Limited chassis availability along with massive demand for drayage trucking services have curtailed box movement out of terminals. If drayage services are not quickly secured, containers run the risk of getting stuck.
Dwelling Containers Stack Up Demurrage Costs
A stationary container can rapidly run up costly demurrage fees.
Ocean carriers charge demurrage to importers whose containers sit at terminals longer than their allotted free period. Unfortunately, pandemic-induced congestion has made it more difficult to move containers. Thus, demurrage collection has spiked in the last year.
The problem has become endemic to many U.S. ports. The Journal of Commerce reports that ocean carriers charged more than $2.2 billion in demurrage and detention fees through the third quarter of 2021 alone. Enough importers have filed complaints that the Federal Maritime Commission (FMC) has conducted fact-finding operations and now is considering new regulations to rein in demurrage fees.
In the meantime, however, it remains up to importers to get their Containers out of terminals before demurrage costs climb. Most BCOs have found it a task easier said than done. The solution? Dedicated Drayage Management (DDM) by a 3PL.
Managing Container Drayage with a 3PL
Getting your container out of a port terminal is rarely as simple as calling the first drayage provider you find and asking for help. In today’s climate, you need an extensive understanding of drayage operations as well as connections in the industry. Without them, you may find it difficult to move containers before demurrage fees arrive.
That is where your 3PL partner comes in – lending the expertise and expansive purchasing power necessary to move your Containers quickly and efficiently. This final-mile port strategy can help you avoid demurrage and deliver your product on time.
Final-Mile Port Solutions with Scarbrough Transportation
Scarbrough Transportation can help you move containers through American ports quickly. Our experience and guidance will ensure that your goods transit from terminals smoothly, avoiding unnecessary costs and improving operational efficiencies along the way – providing a high-level of visibility and technology for every milestone to fruition.
Cut down on demurrage costs – work with an experienced 3PL and transport your containers through ports and on to intermodal facilities seamlessly.