Recent industry news has been focusing on dwell and demurrage practices with shipping containers and TEUs. With the relief of the COVID pandemic at hand, carriers are trying to move more containers than ever before in a single load. This demand for imports has brought record-high rates for cargo shipments. In response, the FMC Chairman is calling for funds to increase their capacity to enforce dwell and demurrage rules for large carriers.
A Crackdown on Dwell & Demurrage Fees
Daniel Maffei, Chairman of the Federal Maritime Commission, has asked the House Transportation & Infrastructure Committee for $30.8 billion to help enforce demurrage and detention rules. Part of the funds would go towards hiring an export advocate who would be solely responsible for helping export shippers move cargo.
A recently announced audit of the nine carriers with the greatest US market share aims to target demurrage and detention practices. Maffei is requesting more enforcement capacity to take on big carriers that go against the Shipping Act. He believes that ancillary fees, such as detention, are unreasonable given that shippers can’t do much about them.
How GPS Container Tracking Can Help
Avoiding unnecessary dwell and demurrage charges can be easily managed with GPS tracking. Placing one of these devices on a container gives you real-time information about its location at every moment of the day. It can also help:
- Determine if containers have been loaded or unloaded properly, to avoid delays and reshipping costs.
- Keep accurate dwell time records at ports or terminals, enabling you to take advantage of “free time” and plan pick-up schedules accordingly.
- Monitor dwell time to provide evidence in the event of unreasonable charges.
- Provide precise location information and expected arrival times so you can plan for paperwork, pick up, and customs and clearance fees in advance.
- Manage downstream processes such as sales and distribution so you can offload cargo quickly and liquidate your working capital faster.
- Establish responsibility in case your container or goods are damaged or stolen, reducing insurance claims and premiums.
- Increase efficiency with alerts about movement, delays, and disruptions so you can enact a recovery plan to minimize the negative impact and keep your supply chain moving.
Save Time and Money with a Container GPS Tracker
Losing profits from late or missing cargo is costly, especially when you also consider the price you pay for handling exceptions, holding buffer inventory, expedited shipping, and lost customers. Container GPS tracking doesn’t just give you a clearer picture of your dwell and demurrage rates. It also helps you identify those weak areas and optimize your shipping efficiency for a more profitable supply chain.
CallPass offers a variety of GPS container tracking devices and software to keep you informed every step of the way and make critical business decisions. To learn more about how we can put this technology to work for your business, please contact us today.