How One Company Reduced Monthly Demurrage and Detention Charges by 80%

Published on
Sep 6, 2022
Written by
Adam Baker
Read time
5 Minutes
Category
Articles

Adam Baker

VP of Customer Experience

How One Company Reduced Monthly Demurrage and Detention Charges by 80% with Gnosis Freight

Like many companies, this (confidential) customer started to realize they were in the dark when it came to what was really going on with their supply chain. They were relying on partners to provide them with data about where their containers were at any given point in time, and to acton their behalf. What they discovered was that those partners either didn't have the necessary data, or the data they had wasn't accurate. The partners didn't know when containers were ready to be picked up or when they needed to be returned, which was resulting in millions of dollars per month of demurrage and detention charges.

Given the customer was practically giving away millions of dollars per month in D&D charges, they decided they needed abetter approach and began searching for the most effective solution to their problem. The challenge? How to ensure they have the most accurate data possible, and how to do that when every carrier and terminal has different terms and rates, plus their own custom contracts as well. A standard one-size-fits-all solution wasn't going to work for them.

They asked if Gnosis could help. The answer,“let's figure it out”. Working with a Gnosis Customer Success Engineer their contract specifics were broken out by carrier, lane, terminal, equipment type and other determinants that are pertinent for accurately calculating each container’s last free day (LFD) both on and off port, and any fees incurred.This process had been internally managed manually and reactively, but Gnosis was able to engineer a proactive alert system that notified the customer of containers at risk of D&D before incurring any fees.

Before Gnosis, this customer spent countless hours (and even days) organizing and understanding the data provided by their ocean carriers and freight forwarders. Now with Gnosis, these respective tasks are accomplished in minutes, providing unmatched container visibility and enabling timely and effective decision making which not allows the customer to hold their partners accountable, but drastically reduces their D&D related charges. The results? A nearly 50% reduction in monthly demurrage and detention fees in the first month and an 80% monthly reduction by month four. As of this writing (August16, 2022) Gnosis has saved this customer $11.8 million YTD on D&D related expenses and given them the data needed to hold underperforming partners accountable.

Gnosis Freight’s Container Lifecycle Management platform provides the most complete and accurate visibility of the one standard unit in the logistics industry, the container. From when the PO is cut and goods are stuffed at origin, until the container is returned empty to the terminal, Gnosis tracks every milestone and provides highly accurate ETAs, ATAs and Last Free Days giving you the visibility you need to effectively manage your containers and supply chain.

Want to learn more about how Gnosis can help solve any challenges you’re facing with your supply chain?

Click here to set up a call!

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