What is a Demurrage Fee?
TMS Glossary
What is a Demurrage Fee?
Demurrage is a fee carriers charge when a shipment remains at a terminal, port, or rail yard beyond the allotted free time. These charges are imposed to encourage quick cargo movement and prevent congestion. Demurrage fees can quickly add up, making it essential for businesses to monitor shipment timelines and streamline logistics to avoid unnecessary costs.
Why Is Carrier Management Important?
- Improves Carrier Performance – Ensures carriers meet service level expectations.
- Reduces Shipping Costs – Negotiates better rates and minimizes inefficiencies.
- Enhances Visibility – Tracks carrier performance, transit times, and reliability.
- Streamlines Operations – Automates carrier selection and management.
- Strengthens Carrier Relationships – Builds better partnerships through data-driven insights.
How Does Carrier Management Work?
- Evaluate and compare carrier rates and service levels.
- Automate carrier selection based on cost, speed, and performance.
- Track shipments and carrier compliance with SLAs.
- Analyze carrier data to optimize logistics strategies.
- Integrate with TMS and logistics platforms for seamless operations.
Key Features of FreightPOP’s Carrier Management Solution
- Automated Carrier Selection – Choose the best carrier based on real-time data.
- Rate & Performance Comparison – Compare carriers for cost and service efficiency.
- Contract & Rate Management – Maintain visibility into contracts and negotiated rates.
- Carrier Communication Tools – Simplify interactions with carriers.
- Advanced Reporting & Analytics – Track carrier performance with actionable insights.
- Seamless Integration – Connect with TMS, ERP, and other logistics systems.
Learn more about FreightPOP
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