- Study shows 50% reduction in D&D exposure.
- Data-driven approach shapes trucker discussions nationwide to address supply chain fragmentation at destination.
- Full visibility of destination supply chain.
Maersk North America’s Destination Cargo Management (DCM) product is designed to optimize destination planning and delivery in supply chains. This segment holds the most opportunity for importers to reduce demurrage and detention (D&D) storage costs and improve end user experience, according to the company’s press release.
Trends in D&D costs
Maersk recently performed a study of storage costs in the North America Warehousing and Distribution (W&D) market to identify trends in D&D costs on the inland leg.
Using a sample size of 1.2 million containers from 2019 and 2020 spanning multiple customers and North America regional markets, the survey analyzed average dwell time containers for every Maersk W&D customer.
The findings revealed that DCM managed customers experienced less than half the D&D cost exposure compared to non-DCM customers.
Multi-tracking system
Several of the nation’s largest importers are using the service with consistent success today.
The data-driven approach highlights dwell time at terminals, at distribution centers, and in off-site storage yards, DCM analysts actively assist clients and their trucking providers with D&D mitigation strategies.
To achieve the results, DCM uses container tracking at multiple steps – from the time of sailing at origin to US port arrival, to US Customs clearance, to port outgate to warehouse arrival, to empty return to the port.
The system integrates electronically with truckers as well as with customers’ distribution centers. With a full dataset providing nationwide visibility of the entire ship-to-shore process, chokepoints are quickly identified and addressed.
The concept uses one daily touchpoint with all truckers using data as the tool to drive discussions, which addresses issues and reduces emotions due to full transparency.
Surging container volumes
The trucking industry is challenged with surging container volumes and a lack of drivers to keep pace with the demand. The industry is fragmented with 95% of the trucking companies having fewer than 20 drivers and often times lacking sufficient IT systems.
To address this, Maersk is working with truckers to onboard them to TradeLens, an industry-backed platform where all uploaded documents are underpinned by blockchain technology, as a way to overcome their IT roadblocks, lack of resources, and offer access to new visibility and optimization technologies.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!
Source: Maersk
