Overcoming the labyrinth of shipping

By April 28, 2021 No Comments

Shipping can be a labyrinthine matter. Although most people think it’s a “Point A to Point B” operation, when a company is receiving stock from different vendors, shipments come from multiple origins — so it’s more of a “Point A, B, C, D, E to Point F” scenario.

When we handle multiple shipments, things can get complicated…and costly. Demurrage, detention and other charges can be a significant factor in doing business when moving freight between shipping ports.

Not only can these charges be costly for a corporate, but they can also create delays thereby effecting stock availability. Of course, the wider spread your supply chain is, the higher the chance for your corporate to incur these charges throughout the various ports around the world.

To add to the confusion, different locations, carriers, and ports have different policies and regulations, all of which translate to additional complexities and costs.

Especially during the current pandemic scenario, while corporate are trying to fix bottom line for cost damages, corporates should always look for cost reduction on logistics whether business is good or bad.

In logistics that involve the numerous container movement, lilliputian variable logistics charges, detention and demurrage are considered as inevitability of moving cargos. These small indirect costs are aggregated to huge amount forming lopsided corporate budget.

Corporates are in a dilemma on the controlling indirect logistic costs. The conventional thinking is most of those cost are small accidental or unforeseen, cannot be rectified and thereby it occurrence is accepted as normal norm.

Read full article at Logistics Middle East

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