Prolonged port stays
With more and more companies adopting the “Just-In-Time” management method to reduce inventory holding costs, among the major challenges that the industry faces is longer-than expected stays in ports. While ports were not planned or designed as places of storage, shipping containers frequently remain in ports longer than planned due to bottlenecks, incorrect planning on behalf of the client, and more.
Why it happens
Among the major reasons for longer-than expected stays in ports, two are most prevalent: Shortage of truck drivers and berth allocation (occurs when the vessel arrives too early or too late to the port and can’t find a berth to unload the containers). In most cases, this may cause the shipping line to miss the free storage days provided by the port which results in demurrage charges inflicted upon the forwarder as well as additional charges due to Pick-Up delay.
Beyond the basic demurrage and port storage charges forced upon the shipping company, cargo that remains longer than necessary in ports faces multiple risks. These include vulnerability to security incidents, exposure to unsuitable temperatures and humidity levels, and, of course, undermining the entire supply chain by forcing the importer to use his safety stock and failing to adhere to timelines.
Contguard offers solutions that enable supply chain transparency with an intelligent pre-alert system to prevent cargo from remaining in ports longer than necessary, as well as ensuring its safety if it does remain there longer than anticipated. How do we do this?
To begin with, we collect data on ports all around the world and analyze it on an ongoing basis to afford our clients with the most accurate pre-planning possible. As Citi indicated in its 2021 Global Supply Chains report, the aggregate data Contguard collects from multiple sources gives shipping companies a real-time overview of bottlenecks in ports, enabling them to plan their route more efficiently.
Additionally, our AI-Based IoT platform provides a reliable ETA and real-time quality and security alerts. A complementary offering is Contguard’s 24/7 control center that handles alerts and exceptions on behalf of the customer and manages an escalation workflow, often without involving the customer.
And once the service providers know that certain cargo is monitored, it becomes better protected all around.
Contact us to learn more about how Contguard can help protect your cargo.