Control Demurrage and Detention Costs with Cargoo Before They Eat into Your Bottom Line

Demurrage and detention costs can be a persistent problem for supply chain managers, cutting into margins and creating financial uncertainty. The reasons are clear: delays in returning empty containers, missed interventions, and a lack of reliable visibility often lead to charges that seem to appear out of nowhere. 
But what if you could address these fees before they add up? Cargoo provides the visibility and management software you need to take control of demurrage and detention costs before they impact your bottom line.

In This Article:

We explore how to effectively manage demurrage and detention costs with Cargoo’s powerful logistics platform. You’ll read about:

  • How visibility into contract terms can help you avoid unexpected demurrage and detention fees.
  • The importance of container utilization optimization and how it directly impacts detention charges.
  • How proactive exception handling ensure you can act before delays lead to costly fees.

By the end of this article, you’ll understand how Cargoo enables supply chain managers to stay ahead of demurrage and detention costs, protecting profitability and improving logistics efficiency.

Here’s how Cargoo’s capabilities address the most common pain points in managing demurrage and detention fees.

Full Visibility into Contract Terms

Contract terms are tied directly to shipments, providing clear visibility of free time and potential costs.

Understanding and managing your shipping contracts is critical to controlling demurrage and detention costs. However, contract details like free time, demurrage rates, and detention limits are often buried in separate documents or spread across folders. Cargoo solves this by giving you direct visibility into these terms, attached to each shipment.

With Cargoo’s platform, you can see exactly when free time expires and when charges will start accruing. This visibility is essential for making proactive decisions about container management and keeping fees under control. By ensuring that contract terms are always at your fingertips, Cargoo allows you to avoid surprises and manage your logistics more effectively.

Optimize Container Utilization to Avoid Costs

Maximize container utilization through proactive capacity planning and avoid unnecessary demurrage and detention costs.

One of the most effective ways to reduce demurrage and detention costs is by maximizing container utilization. Underutilized containers not only waste space but also increase the chances of unnecessary delays, as inefficient loading can create bottlenecks. Cargoo addresses this by offering capacity planning and loading management tools that help you allocate container space more effectively.

With Cargoo, you can predict container needs based on shipment volumes, reducing the likelihood of underused containers. Optimized loading plans ensure that containers are filled to their full potential, minimizing the need for additional containers and preventing delays that could lead to detention charges.

Cargoo’s platform also provides data-driven reports on container usage help you track performance and make improvements where needed. By maximizing container utilization, you can reduce the time containers spend waiting to be returned, cutting down on detention costs.

Shipment Visibility and Exception Handling to Stay Ahead of Disruptions

Full visibility over container status, proactive exception handling, and flexible reporting to manage and mitigate demurrage and detention risks.

The real challenge with demurrage and detention fees is often staying informed. Late visibility over container status or shipment disruptions means you’re constantly reacting to problems, which drives up costs. Cargoo puts an end to this with full visibility over container and free day status status throughout the journey, combined with robust exception handling.

Cargoo’s platform gives you clear visibility on where each container is, whether at a terminal, in transit, or waiting for return. You’ll know if a container is approaching its free time limit, or if there’s an operational issue that needs attention.

In addition, Cargoo’s exception handling allows you to capture and log reasons for exceeding free time when delays happen. This record is key for root cause analysis of recurrent issues and charges and dispute resolution.

Overtime, a wealth of information about your operations and the history of your demurrage and detention costs gets collected and relayed into flexible reports that help you dig into the past to understand and improve future performance. 

Take Control of Demurrage and Detention Costs with Cargoo

Full visibility over container status, proactive exception handling, and flexible reporting to manage and mitigate demurrage and detention risks.

Demurrage and detention costs don’t have to be an unavoidable part of your logistics operations. By providing full visibility over contracts, shipments, and container utilization, Cargoo enables you to take control of these fees before they spiral out of control.

Demurrage and Detention   Demurrage and detention costs are unavoidable but paying more than necessary is not.   Take control of your shipments and cut unnecessary costs with Cargoo.   
Start protecting your bottom line by making smarter, more informed decisions
about your logistics.