- Documentation delays in the shipping industry are contributing to additional costs amounting to a minimum of $25 per container.
- These delays, attributed to payment processing and paperwork issues, result in charges such as detention and demurrage fees.
- ODeX, an online documentation enabler, emphasizes the need for efficient electronic systems to streamline operations and reduce delays.
- However, concerns are raised by some shippers regarding late payment charges imposed by shipping lines, highlighting the ongoing debate between electronic and paper-based documentation methods.
Payment processing and document delays are adding significant costs to the shipping industry, estimated at a minimum of $25 per container, according to industry observations. These delays contribute to additional charges such as detention and demurrage fees, escalating the overall expense of shipping operations.
ODeX’s Perspective
ODeX, an online documentation enabler, highlights the challenges faced by parties involved in the shipping process due to documentation bottlenecks. The company stresses the importance of efficient electronic systems for invoicing, secure payments, and delivery orders to mitigate delays and reduce costs.
Impact of Delayed Payments
Delayed payments not only lead to increased charges but also disrupt the logistics chain, causing delays in cargo clearance and delivery. For instance, in the US, clearance of funds and documentation can take up to four days, resulting in the utilization of free storage time and additional charges for containers.
Debate Over Electronic vs. Paper Documentation
The shipping industry is divided over the effectiveness of electronic versus paper-based documentation. While electronic systems offer benefits such as faster processing and enhanced security, concerns are raised about late payment charges imposed by shipping lines, favoring electronic payment methods.
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Source: Seatrade Maritime
