How so? Not considering free time contributes
to unnecessary detention and demurrage costs on up to 25% of ocean freight
shipments, according to one of the world’s largest NVOCCs.
This growing issue affects
logistics services providers and shippers alike, and is exasperated by the
current state of the ocean cargo markets – specifically with regards to the
ongoing problem of port congestion.
Free time is a contract line item
just like any other fee or surcharge, yet it is rarely considered when making
routing decisions. The reason is that it’s hidden in contracts and typically
overlooked thanks to all the other everyday complexities of ocean freight rate
management – like tracking updates to carrier surcharges and GRIs. Free time is
seldom front of mind when ocean rates get calculated and shipments are booked.
Yet few of the industry’s 1,300+ ocean surcharges that garner most of the
attention can add 11% to a shipment’s cost each day.
......more at here
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