Avoid Demurrage and Detention (D&D) Costs with BuyCo
Over 40% of shippers find D&D charges challenging. BuyCo helps streamline D&D management with accurate data and full visibility, enabling informed decisions to optimize container movements, monitor and dispute fees, and negotiate better terms with carriers.
Failure to manage Demurrage and Detention (D&D) charges leads to substantial financial losses,
often totaling millions annually. A lack of internal visibility into the container’s free time
consumption makes it difficult for shippers to get a red flag on time to avoid these costs. Moreover,
a limited collaboration between finance and operations teams to review carrier invoices and
dispute unjustified fees results in lost revenue opportunities.
How BuyCo Helps You Take Control of D&D
Monitor Free Time consumption and D&D costs
With BuyCo, monitor your container’s D&D and Storage charges in real-time, from a single dashboard. Quickly identify containers nearing the end of their free time or already exceeding it, enabling you to take action before costs escalate:
Live calculation of your containers’ free-time consumptionD&D and Storage associated costs based on your tendersThree statuses (normal, approaching, and incurring) presented with an explicit color code for more visibilitySearch easily your containers filtering by origin, destination, carrier, or booking number.In addition, upload containers without booking numbers and manage container pooling on the platform.
Details of Container D&D Costs
Dashboard with Container D&D status: Incurring, Approaching, and Normal
From Empty Pickup to Return: Complete Milestone Records and Deviation Details
Recording of all the Deviations evidences
Centralize complete milestone records of your containers to understand the history behind each cost. This helps establish evidence of liability from external parties that may have contributed to the surcharges.
All container milestones are automatically recorded by BuyCo in your container view using external sources, such as inland bookings, terminal data, or trucking companies.Complete the data by allowing your team to add new
deviations related to a single container or in mass.Include comments for a comprehensive understanding of the situation.Filter deviations by responsibility (carrier or shipper) and check charges per shipment or container.
From Empty Pickup to Return: Complete Milestone Records and Deviation Details
Manage Freight Audit & Manage Disputes with Carriers
BuyCo empowers your invoice and operations teams to collaborate more effectively, improving cost visibility and streamlining dispute management. Your freight invoice team gains instant access to critical information, enabling them to quickly identify and refute inappropriate costs. This reduces the need for manual checks, saving time and lowering accessorial costs.
Pre-invoicing to carriers :
Before invoices are issued by carriers, BuyCo calculates freight costs and D&D charges according to your carriers’ rates and recorded deviations.Control of carrier invoices :
Receive carrier invoices, compare them with your own ‘pre-invoice,’ and identify discrepancies.
Resolve claims :
Determine responsibility for fees, share with carriers, receive updated invoices, and approve for payment
Resolve claims :
Determine responsibility for fees, share with carriers, receive updated invoices, and approve for payment
Strategic Insights to Minimize D&D Costs
Monitor critical metrics related to recurring deviations to identify the causes of D&D costs and take steps to reduce them in the future. At a glance, identify:
Carriers with the highest detention and demurrage (D&D) costsPOL/POD locations most subject to deviationsSources of liability at the origin of deviationsDeviation types that occur most frequently
Potential Cost Savings from Managing
Demurrage and Detention Charges
A company ships around 55,000 containers per year, with 90% of these shipments going to affiliates who handle local
deliveries. The local affiliates are responsible for managing any detention and demurrage (D&D) charges, but the maritime
team in the home office is not involved or informed about these costs.
Return Period
Fee per Day per Container
D&D charges are applied as follows :
Market analysis shows that around 5% to 15% of containers incur D&D charges, depending on factors like internal management and local ports.
- 55,000 containers * 90% = 49,500 containers handled by the company.
- 5% of 49,500 = 2,475 containers incur extra charges.
- 15% of 49,500 = 7,425 containers incur extra charges.
- Average extra detention: 5 days per container.
- Low estimate: 2,475 * 5 days * €27.5 = €340,313
- High estimate: 7,425 * 5 days * €27.5 = €1,020,938
The new BuyCo feature can reduce D&D costs by 50–60%.
- Low estimate: €340313 * 50% = €170 156
- High estimate: €1,020,938* 60%= € 612 562
access
you to
platform, your finance team can streamline freight audits by focusing on billing discrepancies
challenging unfair carrier charges, and
FAQ
What Are Demurrage and Detention ?
Demurrage and detention are charges applied by carriers when containers exceed their allotted free time.
Demurrage
Fees incurred when containers stay at the port or terminal beyond the free time allowed. These fees are charged by the carrier.
Detention
Fees incurred when containers stay outside the port or terminal beyond the free time allowed.
Storage charges
Fees imposed for storing cargo or containers within the port area, typically after the free period has ended. These fees may apply to storage in a container yard or warehouse and are charged by the port terminal
Free Time
Shipping lines or carriers typically offer a designated period of free time, allowing the container to be used without incurring extra charges. The duration of this free time varies and is outlined in the terms of the shipping contract.