In maritime transportation, every container has the potential for profit or loss.
One of the most important financial problems that negatively affects this profitability is the complexity of Demurrage and Detention agreements.
In the U.S. alone, disputes increased by 7.1%, leading carriers to pay heavy penalties. These disputes often arise due to a lack of clear communication and ambiguities in contracts. Failure to accurately transfer Demurrage and Detention information leads to revenue leakage and operational inefficiencies, damaging profitability. As a result, invoice inaccuracy often leads to disputes, waivers, and damaged reputations. Eventually, this hurts customer satisfaction. What we need to see is that the damage to carriers’ relationships with their customers is far more severe than the costs of demurrage and detention.
The shipping sector needs bigger and more systematic innovation – that’s an undeniable fact.
Undoubtedly, outdated messaging processes make carriers dissatisfied with the service they provide to customers. In the age of digitalization, customers’ expectations are ever-increasing, while sticking to the old ways cannot be expected to positively impact a company’s ability to differentiate, grow and innovate. Especially, this automation should ensure that the charges are calculated in real-time. In this way, the service can be provided with a more efficient and error-free system.
Being able to track in real-time when the free time clock stops and starts, clear visibility into charges and efficient handling of demurrage and detention agreements attracts customers and makes them feel safe. As a result, this high level of transparency also benefits business decision-making and long-term loyal customers can be gained.
