Technology service platform CDL 1000 announced on Aug. 9 a pledge to “save shippers up to half their overall transportation costs by reducing demurrage and rail yard storage fees.”
The company says it promises a 24-hour turnaround to pull any container and clear it out of a U.S. port or rail yard, “which would help new and existing customers avoid costly fees with containers sitting idle.” CDL 1000 claims it has created an “industry-first” escrow account that will pay demurrage and storage fees on behalf of customers if it does not meet this promise. The quick turnaround times and the escrow account, CDL 1000 says, will enable the company to reduce customers’ late fees and storage costs by 20% to 50%, boosting their bottom lines.
According to CDL 1000, one of the most significant issues around clearing storage space at ports and rail yards is moving containers out on time. Lengthy approval wait times that can take days only puts more money in the pockets of ports and rail yards through demurrage and storage fees, the company says. For companies across the board, these fees can cost millions of dollars each month. One global electronics manufacturer says it was slapped with $2 million in demurrage fees in one single week.
“No other company in the industry is doing this,” said CDL 1000, which, according to the company, further positions it as the “Federal Emergency Management Agency (FEMA) of drayage.” Shippers can contact CDL 1000 when they’re in a bind to transport containers and keep shipments moving along the supply chain quickly and efficiently.
“The supply chain is under immense pressure to deliver goods, and companies are racking up extra costs by letting containers sit idle in ports and rail yards,” said Koz Hara, Executive Vice President at CDL 1000. “We’re putting our money where our mouth is. Our promise of moving containers on time or paying demurrage fees is our way of flipping the supply chain on its head and helping customers drastically reduce their overall transportation costs. We’re going to support customers any way we can, and our bank is open.”
CDL 1000 says customers can leverage its private equipment and large container management team to guarantee on-time delivery for every shipment. For shippers, this means they can more accurately forecast and budget their overall transportation costs, helping them allocate resources to other parts of the business to maximize efficiency.
“The fees shippers incur at ports and rail yards directly impact the supply chain, ending with consumers,” CDL 1000 says. “These fees get passed along to other transportation providers until products reach store shelves. Inflation is already taking its toll on Americans’ pockets, and CDL 1000 is setting out to help curb rising costs,” the company added.
“Americans are hurting enough from inflation, and ports and rail yards are only adding pressure through their extensive fees,” Hara said. “By taking the pressure off our customers and helping them move containers quicker, hopefully we’ll see the lowered costs reach consumers.”
According to CDL 1000, the top five most expensive global ports for detention and demurrage fees on cargo containers are all in the U.S., where such charges have increased during 2022, even as average costs around the world have fallen from their record highs in 2021. The gap in fees is two to three times higher, CDL 1000 says, at U.S. ports than others around the world, despite increased U.S. regulatory scrutiny of such charges, highlighted by the June passage of the Ocean Shipping Reform Act. This U.S. law grants federal regulators more power to exert control over ocean carriers.