IDEAS home Printed from https://ideas.repec.org/a/spr/josatr/v8y2023i1d10.1186_s41072-023-00132-1.html
   My bibliography  Save this article

Demurrage and detention: from operational challenges towards solutions

Author

Listed:
  • Katrien Storms

    (University of Antwerp)

  • Christa Sys

    (University of Antwerp)

  • Thierry Vanelslander

    (University of Antwerp)

  • Ruben Deuren

    (University of Antwerp)

Abstract

Reduced free time and increased fees for demurrage and detention create organizational challenges with respect to intermodal transport. As a result, actors within the maritime supply chains are confronted with greater complexity and higher risk of costs; and, therefore, often fall back on transportation by truck to and from the hinterland. That is why the present research examines the impact of this evolution on the bottom line of the involved actors from a maritime supply chain perspective. The research approach consists of reviewing the relevant literature, analyzing the available sector data obtained through interviews and professional experience, and validating the proposed solutions. Starting from the research results, the problem-solving discussions resulted in the following top three as feasible solutions: digitalization, extra ‘free time’ for hinterland locations, and more attention during the negotiation process.

Suggested Citation

  • Katrien Storms & Christa Sys & Thierry Vanelslander & Ruben Deuren, 2023. "Demurrage and detention: from operational challenges towards solutions," Journal of Shipping and Trade, Springer, vol. 8(1), pages 1-31, December.
  • Handle: RePEc:spr:josatr:v:8:y:2023:i:1:d:10.1186_s41072-023-00132-1
    DOI: 10.1186/s41072-023-00132-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s41072-023-00132-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1186/s41072-023-00132-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. H. Meersman & E. Van De Voorde & T. Vanelslander, 2010. "Port Competition Revisited," Review of Business and Economic Literature, Intersentia, vol. 55(2), pages 210-233, June.
    2. Yu, Mingzhu & Fransoo, Jan C. & Lee, Chung-Yee, 2018. "Detention decisions for empty containers in the hinterland transportation system," Transportation Research Part B: Methodological, Elsevier, vol. 110(C), pages 188-208.
    3. Kim, Kap Hwan & Kim, Ki Young, 2007. "Optimal price schedules for storage of inbound containers," Transportation Research Part B: Methodological, Elsevier, vol. 41(8), pages 892-905, October.
    4. Jeong, Yoonjea & Saha, Subrata & Moon, Ilkyeong, 2020. "Optimal devanning time and detention charges for container supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).
    5. Mingzhu Yu & Kap Hwan Kim & Chung-Yee Lee, 2015. "Inbound container storage pricing schemes," IISE Transactions, Taylor & Francis Journals, vol. 47(8), pages 800-818, August.
    6. Christa Sys & Gust Blauwens & Eddy Omey & Eddy Van De Voorde & Frank Witlox, 2008. "In Search of the Link between Ship Size and Operations," Transportation Planning and Technology, Taylor & Francis Journals, vol. 31(4), pages 435-463, June.
    7. Benjamin Legros & Yann Bouchery & Jan C Fransoo, 2019. "A Time-Based Policy for Empty Container Management by Consignees," Post-Print hal-02019993, HAL.
    8. H. Meersman & E. Van De Voorde & T. Vanelslander, 2010. "Port Competition Revisited," Review of Business and Economic Literature, Intersentia, vol. 0(2), pages 210-233, June.
    9. Peter W. Langen & Jan C. Fransoo & Ben Rooy, 2013. "Business Models and Network Design in Hinterland Transport," International Series in Operations Research & Management Science, in: James H. Bookbinder (ed.), Handbook of Global Logistics, edition 127, chapter 0, pages 367-389, Springer.
    10. Sys, Christa, 2009. "Is the container liner shipping industry an oligopoly?," Transport Policy, Elsevier, vol. 16(5), pages 259-270, September.
    11. Itf, 2015. "The Impact of Mega-Ships," International Transport Forum Policy Papers 10, OECD Publishing.
    12. Edwin Van Hassel & Hilde Meersman & Eddy Van de Voorde & Thierry Vanelslander, 2016. "Impact of scale increase of container ships on the generalised chain cost," Maritime Policy & Management, Taylor & Francis Journals, vol. 43(2), pages 192-208, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jiawei Ge & Mo Zhu & Mei Sha & Theo Notteboom & Wenming Shi & Xuefeng Wang, 2021. "Towards 25,000 TEU vessels? A comparative economic analysis of ultra-large containership sizes under different market and operational conditions," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 23(4), pages 587-614, December.
    2. Xing, Xinjie & Song, Dongping & Qiu, Chengfeng & Drake, Paul R. & Zhan, Yuanzhu, 2023. "Joint tank container demurrage policy and flow optimisation using a progressive hedging algorithm with expanded time-space network," European Journal of Operational Research, Elsevier, vol. 307(2), pages 663-679.
    3. Zhengyi Li, 2019. "Optimal Utilization of Ports’ Free-of-Charge Times in One Distribution Center and Multiple Ports Inventory Systems," Complexity, Hindawi, vol. 2019, pages 1-12, February.
    4. Moura, Ticiana Grecco Zanon & Chen, Zhangliang & Garcia-Alonso, Lorena, 2019. "Spatial interaction effects on inland distribution of maritime flows," Transportation Research Part A: Policy and Practice, Elsevier, vol. 128(C), pages 1-10.
    5. Jeong, Yoonjea & Saha, Subrata & Moon, Ilkyeong, 2020. "Optimal devanning time and detention charges for container supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).
    6. Milan Janić, 2018. "Multidimensional examination of the performances of a liner shipping network: trunk line/route operated by conventional (Panamax Max) and mega (ULC - ultra large container) ships," Journal of Shipping and Trade, Springer, vol. 3(1), pages 1-35, December.
    7. Górecka, Aleksandra, 2016. "Transportation Costs of Containers from Asia to Europe via DCT Gdansk and Hamburg Seaports," Problems of World Agriculture / Problemy Rolnictwa Światowego, Warsaw University of Life Sciences, vol. 16(31), pages 1-8, December.
    8. Mohd Zarir Yusoff* & Mohd Saiful Izwaan Saadon & Nurul Haqimin Salleh & Tomingan Kamaron & Hanafi Ahmad, 2018. "Literature Review on Determinants Affecting Knowledge Sharing," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 860-866:2.
    9. Hilde Meersman & Eddy Van de Voorde & Thierry Vanelslander, 2013. "Nothing remains the same! Port competition revisited," Chapters, in: Thomas Vanoutrive & Ann Verhetsel (ed.), Smart Transport Networks, chapter 2, pages 9-28, Edward Elgar Publishing.
    10. Enrico Musso & Anna Sciomachen, 2020. "Impact of megaships on the performance of port container terminals," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(3), pages 432-445, September.
    11. Dariusz Bernacki & Christian Lis, 2021. "Investigating the Sustainable Impact of Seaport Infrastructure Provision on Maritime Component of Supply Chain," Energies, MDPI, vol. 14(12), pages 1-22, June.
    12. Enrico Musso & Anna Sciomachen, 0. "Impact of megaships on the performance of port container terminals," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 0, pages 1-14.
    13. Thomas Vanoutrive, 2012. "Explaining Port Size: Accessibility, Hinterland Competition and a Semi-Endogenously Determined W," ERSA conference papers ersa12p668, European Regional Science Association.
    14. Kashiha, Mona & Thill, Jean-Claude & Depken, Craig A., 2016. "Shipping route choice across geographies: Coastal vs. landlocked countries," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 91(C), pages 1-14.
    15. Caldeirinha, Vítor & Felício, J. Augusto & Salvador, Antónia Sena & Nabais, João & Pinho, Tiago, 2020. "The impact of port community systems (PCS) characteristics on performance," Research in Transportation Economics, Elsevier, vol. 80(C).
    16. Martínez-Pardo, Ana & Orro, Alfonso & Garcia-Alonso, Lorena, 2020. "Analysis of port choice: A methodological proposal adjusted with public data," Transportation Research Part A: Policy and Practice, Elsevier, vol. 136(C), pages 178-193.
    17. Jeong, Yoonjea & Kim, Gwang, 2023. "Reliable design of container shipping network with foldable container facility disruption," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 169(C).
    18. Youn Ju Woo & Jang-Ho Song & Kap Hwan Kim, 2016. "Pricing storage of outbound containers in container terminals," Flexible Services and Manufacturing Journal, Springer, vol. 28(4), pages 644-668, December.
    19. Carlo Altomonte & Laura Bonacorsi & Italo Colantobe, 2018. "Trade and Growth in the Age of Global Value Chains," BAFFI CAREFIN Working Papers 1897, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.
    20. Kap Hwan Kim & Youn Ju Woo & Jae Gwan Kim, 0. "Space reservation and remarshalling operations for outbound containers in marine terminals," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 0, pages 1-25.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:josatr:v:8:y:2023:i:1:d:10.1186_s41072-023-00132-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.