If you can, Avoid D&D

Logistic equipment plays a critical role in the transportation of goods and materials around the world. Companies rely on this equipment to keep their supply chains running smoothly and efficiently. However, there are a number of costs associated with using logistic equipment that can add up quickly if not managed properly. One of the most significant of these costs is detention and demurrage charges.

There are several reasons why it's important to avoid detention and demurragecharges. One of the most significant is the impact on cash flow.

These charges can add up quickly and can result in significant financial losses for companies.

In addition, these charges can also impact a company's ability to meet customer demand and can result in delays in shipping and delivery times.

Another reason to avoid detention and demurrage charges is the impact on relationships with logistics providers. These charges can strain relationships with logistics providers and can lead to increased costs and delays in future shipments.

By avoiding these charges, companies can maintain strong relationships with their logistics providers and ensure that their shipments are handled efficiently and effectively.

Finally, avoiding detention and demurrage charges is important for compliance reasons. Failure to comply with these charges can result in penalties and fines from regulatory authorities.

By managing these charges effectively, companies can avoid these penalties and maintain compliance with all applicable regulations.

In conclusion, avoiding detention and demurrage charges is critical for companies that rely on logistic equipment to transport goods and materials.

By managing these charges effectively, companies can maintain strong relationships with logistics providers, improve cash flow, and avoid penalties and fines from regulatory authorities.

With careful management and planning, companies can minimize these costs and maximize the efficiency of their supply chains.

Trends that transform the industry

The Covid-19 pandemic accelerated not only eCommerce and omnichannel shopping but also “greater expectations from consumers of more convenient services such as click and collect, free delivery and returns.

Kantar and Catalyst’s 2020 study also revealed that 66% of shoppers chose a retailer based on convenience, while only 47% chose a retailer based on price or value. When it comes to convenience, today's consumers expect faster shipping.

The sudden increase in online shopping besides worsening the supply chain crisis, is also exacerbating the environmental crisis.

Issues as on-port pollution has largely been brushed to the side to deal with the immediate economic implications of the supply chain crisis and port jams, resourcing to the use of virtually every piece of equipment in the port spiking continuous burning of fuel.

Container ships are contributing around half of all emissions at the ports, followed by oil and chemical tankers. Tugboats and ferries are also contributing to pollution. On land, diesel trucks are idling for hours waiting to be loaded with goods as cranes move containers weighing over 20 tons.

The main shipping companies and ship manufacturers in the world are addressing the consequences of the crisis early by focusing on modernizing their fleet and prioritizing marine preservation.