Maritime Industry Grapples With Rising Demurrage Costs

Maritime Industry Grapples With Rising Demurrage Costs

This article analyzes the meaning of "On Demurrage" in voyage charters and its relationship with demurrage charges. Demurrage fees are costs incurred by the charterer for exceeding the loading and unloading period specified in the contract, usually calculated on a daily basis. The contract outlines the conditions for entering a state of demurrage, which varies in terminology across different countries. Additionally, it explores the distinctions between demurrage in voyage charters and container transport.

07/28/2025 Logistics Encyclopedia
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Flexport Enhances Booking Tool for Realtime Shipping Management

Flexport Enhances Booking Tool for Realtime Shipping Management

Flexport has upgraded its booking management tools with a new quota management dashboard. By integrating booking, contract, and carrier data, it provides businesses with a real-time, comprehensive view of quota performance. This tool allows users to monitor freight volumes, identify contract deviations, and perform forward-looking planning. It empowers companies to optimize their ocean freight strategies and reduce supply chain costs by offering data-driven insights into quota utilization and potential areas for improvement.

12/30/2025 Logistics
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West Coast Ports Resume Labor Talks to Prevent Congestion

West Coast Ports Resume Labor Talks to Prevent Congestion

The International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) are scheduled to resume negotiations to proactively address contract extensions and prevent future freight congestion at West Coast ports. These talks are critical to global trade stability. Key negotiation points are expected to include wages and benefits, automation, job security, and contract duration. The outcome will directly impact shippers' supply chain efficiency and costs, making a timely agreement essential to avoid disruptions.

01/21/2026 Logistics
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Fedex Layoffs Signal Logistics Strain Before Singles Day

Fedex Layoffs Signal Logistics Strain Before Singles Day

FedEx Supply Chain is closing four facilities and laying off over 450 employees due to contract expirations. Facing intense market competition, FedEx needs to innovate its services, improve profitability, and expand its business footprint. This closure highlights the challenges within the logistics and supply chain sectors, requiring companies like FedEx to adapt and strategize for long-term sustainability. The contract losses underscore the importance of securing and maintaining key partnerships in the competitive landscape.

01/19/2026 Logistics
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UPS Wins USPS Air Cargo Deal Disrupting Delivery Sector

UPS Wins USPS Air Cargo Deal Disrupting Delivery Sector

UPS's successful acquisition of the USPS air cargo contract marks a significant shift in the express delivery landscape. This transition is driven by USPS's strategic transformation, FedEx's reluctant departure, and UPS's aggressive expansion. The future of the express delivery industry promises heightened competition, where only those who adapt to change will thrive. This contract solidifies UPS's position and signals a new era of strategic maneuvering within the industry, requiring competitors to re-evaluate their approaches to maintain market share and profitability.

01/21/2026 Logistics Industry Insights
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Q1 Trucking Gains As LTL Struggles Parcel Prices Rise

Q1 Trucking Gains As LTL Struggles Parcel Prices Rise

The TD Cowen-AFS Freight Index Q1 report indicates emerging signs of recovery in the truckload market, with rising spot rates, although contract rates remain under pressure. Parcel pricing strategies are proving effective, with fuel surcharge adjustments generating revenue, but discount competition is intense. While LTL rates remain stable, pricing discipline is beginning to erode, and fuel surcharges are declining. The report offers insights into current trends and challenges within the freight transportation industry, highlighting the interplay of spot and contract rates, pricing strategies, and fuel surcharges.

01/15/2026 Logistics Industry Insights
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