Demurrage and detention fees are a serious source of headaches for many shippers. For one, the frequency of these fees continues to rise; according to insights from the annual Demurrage and Detention benchmark report, the global frequency of demurrage and detention charges spiked 39% in 2021. The frequency of these charges is a concern, but so is the cost involved. Rising costs in detention and demurrage have made it more important than ever for shippers to ensure that their containers are picked up and returned in a timely manner.
The good news for shippers is that freight visibility software can go a long way towards mitigating the impact of rising demurrage and detention fees. Shippers are turning to tech-enabled logistics providers with ocean freight visibility as a means to curb rising demurrage and detention costs. For this reason, venture capitalists and other private-equity investors have been funding logistics tech companies at a rate of $9 billion a quarter since late 2020.
But how does freight visibility work to prevent demurrage and detention fees? To help shippers mitigate the impact of these fees on their company's bottom line, let's take a look at the three ways that freight visibility works to eliminate demurrage and detention charges and how an industry-leading freight visibility platform such as VIZION API provides the supply chain visibility that modern shippers require.
Three Ways Ocean Freight Visibility Software Helps Shippers Navigate the Rising Costs of Demurrage and Detention
Freight visibility software provides a broad range of benefits that help reduce the frequency of demurrage and detention charges. Here are the three ways how shippers can accomplish this:
1. Empowerment Through Analytics
Insufficient data is one of the top challenges shippers face today, compounded by the fact that manual data collection is costly and time-consuming. Ocean freight visibility software automates time-consuming data collection and aggregation, helping shippers transform raw data into actionable, easily-shared insights. By leveraging this data, shippers can proactively plan for delays, enabling them to avoid demurrage and detention fees at the port. Software such as VIZION API also provides insights into current and past shipping trends, allowing shippers to make informed decisions and improve their overall shipping efficiency.
2. Flexibility Through Visibility
Supply chain visibility provided by real-time container tracking software helps shippers improve operational flexibility by enabling them to track and monitor their freight shipments and assets in real time. This empowers shippers to quickly and accurately identify potential delays or disruptions and mitigate any potential issues. Additionally, ocean freight visibility improves planning by allowing shippers to anticipate and adjust their operations in advance to meet changing customer needs. This gives shippers greater control over their supply chain, improving operational flexibility and preventing delays that would otherwise result in demurrage and detention fees.
3. Actionability Through Integration
APIs make it easy for shippers to integrate container tracking software into their existing tech stack. By integrating real-time container tracking software into their existing TMS, shippers are able to quickly connect their operations to suppliers, carriers, and customers. API integration also facilitates the exchange of data between shippers and their partners, enabling them to collaborate more effectively. Improved communication and collaboration provides numerous benefits, mainly by reducing demurrage and detention fees.
Gain More Visibility and Reduce your Transportation Costs With VIZION's API Integration
Shipping managers understand their supply chain best, and what areas in their operations need improvement. That's why VIZION API technology is customizable to fit each shipper’s individual needs. The software integrates seamlessly into existing TMS and other databases, ensuring that shippers can take full advantage of the range of options provided by the digital platform.
Through VIZION's cloud-based API, shippers can access:
- Unparalleled ocean freight visibility
- Actionable analytics
- Full API integration into existing tech stacks
Along with a wealth of other benefits, the integrated ocean freight visibility provided by VIZION API enables shippers to reduce demurrage and detention fees through improved planning and communication. To get started leveraging VIZION's revolutionary real-time container tracking API to enjoy the many advantages of ocean freight visibility, be sure to book a VIZION API demo today!