CONNECT WITH US
eCommerce

eCommerce

Beacon cuts importer's detention costs from USD $1.3m

Ecommerce News Asia logo

Published on

Add as a preferred source on Google
Beacon cuts importer's detention costs from USD $1.3m

Beacon says a US importer of Southeast Asian foods is on track to cut annual demurrage and detention costs from more than USD $1.3 million to near zero within months after deploying its supply chain software.

The importer and distributor manages thousands of containers a year across Asia-Pacific routes, making demurrage and detention fees a material cost in its ocean freight operations.

Beacon is targeting average reductions of more than 50% in these charges for customers using its demurrage and detention tools across their operations. Its approach checks invoices against live shipment data and contracted terms, rather than leaving importers to accept charges without verification.

Demurrage and detention fees are typically imposed when containers remain too long at ports or are returned late. The charges often arrive weeks or months after a shipment is completed, making them difficult for finance and logistics teams to match to individual containers and assess against contractual free-time allowances.

According to figures Beacon cited from the US Federal Maritime Commission, nine major carriers collected USD $15.4 billion in demurrage and detention charges between 2020 and 2025. Beacon estimates that a business spending USD $50 million a year on ocean freight may face annual exposure of between USD $1.5 million and USD $4 million.

The software tracks the expiry of free time against live estimated arrival times so teams can act before charges build up. When an invoice arrives, it links the bill to the original shipment through the container number, checks the days charged against actual port dwell time, and verifies rates against contracted terms.


Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.