No-Show Container Surcharge – Another Reason to Have Better Ocean Shipment Visibility


Maersk Line recently announced its No-show Container surcharge. Maersk Line will adopt carrot-and-stick measures in the next 18 months in a bid to reduce the number of customers failing to deliver ocean containers on time and to cut delayed ocean shipments to a minimum.

Maersk’s Chief Executive Eivind Kolding says “Today, we deliver our ocean containers on time 80% of the time. The industry average is 50%. The 50% is appalling, but 80% is not very good, either. Our target is to push it to 95% on-time delivery by the end of 2012".

Mr. Kolding informs us “At the moment, Maersk Line ships often sail with unfilled capacity because some 30% of all ocean containers booked aren't delivered before vessels sail”.

Kolding continues "That's a huge waste. We need to get it down. We can't get it down to zero--there will always be a little slack in the system--but it's far too much now."

Kolding says "We haven't put in a specific number yet, but we would like to talk about $100 to $200 per ocean container. It shouldn't be a big amount, but big enough to make an impact on behavior".

Maersk hangs out the incentive carrot saying “To reduce it, Maersk Line intends to introduce a load protection charge. No-show container customers will be slapped with surcharge fees, but, at the same time, Maersk Line will reimburse customers if a ship is overbooked and has to leave containers behind”.

Freight Forwarders and Logistics Providers will be impacted the most by the new No-show Container surcharge. This will create a critical demand for more and better coordination between shippers, logistics providers and ocean carriers. It will be essential to have ocean container visibility, good communications with freight rate management. If you do not have ocean container movement visibility with rate management controls, there is good news.

The Good News: The cost of logistics visibility and freight rate management software is easily within reach with new cloud computing. Cloud Computing known as SaaS (Software-as-a-Service) provides opportunities for shippers, logistics providers and carriers to obtain the latest and best logistics visibility and rate management software at a very low cost entry point with customization and very fast setup .

Need help with Shipment Visibility and Freight Rate Management? Freightgate is the world's leading Logistics SaaS Software Solutions provider for global shippers, forwarders, carriers and supply chains. Freightgate's applied technological and industry-specific expertise ensures that you achieve and sustain competitive advantage. Contact Freightgate on the web at http://www.freightgate.com , email sales@freightgate.com

About Freightgate
Based in Huntington Beach, California, the Freightgate (freightgate.com) team has been developing Internet solutions for the freight and logistics since 1994, such as its industry-leading PLTX™ Platform, with I-Trek!® Internet Supply Chain Collaboration & Visibility; GTM-Trek!™ for RFQ and tender management; Tariff-Trek!™ for service contract and quote management; FMC-Trek!™ for fulfilling FMC publishing requirements; Pay-Trek!™ for automated freight bill audit and payment; WISA™ innovative What-If-Scenario Analysis tool; I-Sail!™ interactive online sailing schedule; Compliance-Trek!™ for compliance management with FMC and U.S. Customs. Freightgate's customer portfolio contains companies such as Agility Logistics, Alliance International, APL Logistics, CaroTrans, Menlo Worldwide Logistics, Nippon Express, Panalpina, Primary Freight, RH-Shipping and Top Ocean. Freightgate is ISO 9001:2008 certified. For more information, visit www.freightgate.com


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