| Pub. Date | : Nov, 2023 |
|---|---|
| Product Name | : The IUP Journal of Operations Management |
| Product Type | : Article |
| Product Code | : IJOM030224 |
| Author Name | : Elias Benamar Hilal |
| Availability | : YES |
| Subject/Domain | : Management |
| Download Format | : PDF Format |
| No. of Pages | : 19 |
This paper delves into the macroscopic and microcosmic dimensions of demurrage, offering insights into its widespread implications and exploring anonymized cases within the logistics sector. At the global level, the analysis reveals that demurrage is not just a ticking clock on container delays but a dynamic force with billions in annual costs, influencing the very fabric of the shipping industry. A nuanced examination of demurrage spending based on container days in ports underscores the need for tailored strategies to optimize efficiency across varying periods of delays. Zooming in on these various anonymized cases within the logistics sector, the analysis unravels a corporate tapestry woven with challenges. Mismanagement by outsourced logistics partners and storage capacity constraints emerge as primary hurdles, demanding strategic solutions. Strategic solutions such as including vendor management, capacity optimization, technology integration, and meticulous documentation, stand out as vital pillars for companies navigating the waves of demurrage.
In the fast-paced realm of international logistics, the efficient movement of goods is paramount to sustain the interconnected global economy. Central to this efficiency is the management of demurrage costs, a critical factor influencing the timeliness and cost-effectiveness of international trade. This paper sets the stage by introducing the profound significance of demurrage costs in the broader landscape of global logistics, with a specific emphasis on the intricate dance between maritime transportation and port operations.