MAERSK’s North America’s Destination Cargo Management (DCM) reduces demurrage and detention exposure by 50 per cent, reports IHS Media.
DCM notes dwell time at terminals, distribution centres and off-site storage yards. “We’re able to bring performance management to a whole new level through this holistic approach – which starts with knowing the origin info upstream,” said Maersk warehouse and distribution expert Matt Koivisto.
Its DCM product is designed to optimise destination planning and delivery in supply chains, thus holding opportunities for importers to reduce demurrage and detention storage fees.
Using 1.2 million containers from 2019 and 2020 in North America regional markets, Maersk averaged dwell time. The findings revealed that DCM managed customers experienced less than half the demurrage and detention costs compared to non-DCM customers.
Maersk says several of America’s biggest importers are using DCM. The data-driven approach highlights dwell time and actively assists clients and their trucking providers with demurrage and detention mitigation strategies.
To achieve the results, the system integrates electronically with truckers as well as with customers’ distribution centres. With a full dataset providing nationwide visibility of the entire ship-to-shore process, chokepoints are quickly identified and addressed.
“The service provides customers with a powerful performance management tool that removes perceptions from the equation and instead focuses on root cause problem-solving,” said Mr Koivisto.