CDL 1000, a leader in technology for the logistics industry, announced the launch of its new service offering Demurrage as a Service (DaaS) that will help customers save tens of millions of dollars each week by avoiding severe late fees, which, unfortunately, has become common occurrence due to the nation’s ongoing supply chain challenges. This announcement is the beginning of CDL 1000’s $100 million-dollar commitment to digitize the drayage space aimed at transitioning away from ad hoc, manual practices of yesterday to technology-based operations that bring more automation, accuracy and speed to supply chain operations.
“The fees that shippers face at ports and rail yards are ridiculous,” said Andrew Sobko, founder and CEO of CDL 1000. “Logistics operations are already being severely hampered by the labor shortage that the entire industry is facing, which is leading to the long lead times of containers sitting idle. Demurrage fees aren’t doing anything to help. Rather, those costs are only passed along the supply chain until it ultimately hurts consumers’ pockets.”
Sobko added that one of the biggest challenges Fortune 100 companies face is moving shipping containers filled with products out of ports and rail yards and into the drayage portion of the supply chain, ultimately destined for store shelfs and manufacturers.
“When these containers sit idle for too long, the port and rail yard operators can charge the companies demurrage fees, which can cost upwards of a million dollars per week,” said Sobko.
After CDL 1000 recently announced its promise to pull any container and clear it out of a U.S. port or rail yard within 24 hours combined with paying demurrage fees, customers can leverage CDL 1000’s DaaS solution to:
- Find truck drivers to transport containers quicker
- Obtain better visibility into free drivers, chassis and containers
- Pay demurrage fees that have racked up
- Forecast transportation costs more accurately
- Digitize operations for greater operational efficiencies and tracking abilities
- Save millions of dollars in demurrage fees each week, boosting their bottom lines
DaaS is an industry-first solution to help the world’s leading shippers get better control over their drayage operations. Seen as the 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 introduction of DaaS is the first part of CDL 1000’s $100 million-dollar commitment to digitize the drayage space. The supply chain industry has traditionally been reluctant to adopt digital solutions. The nature of the workforce has enabled operations to remain stagnant over the years and rely heavily upon manual operations, even for things as simple as passing paper along from one person to the next for record keeping.
By pledging to digitize the drayage industry, CDL 1000 aims to transition ad hoc, manual practices to technology-based operations that bring more automation, accuracy and speed to everyday tasks. This will enable companies across the board to improve operational efficiencies and boost their bottom lines. CDL 1000 either currently offers or will soon introduce the following solutions:
- DaaS – helps shippers manage their demurrage fees and reduce transportations costs
- Batch – enables shippers to move upwards of 50 – 1,000 containers at a time, like Costco bulk buying
- Ruby – allows shippers to book a truck through an AI-voice assistant, much like Amazon’s Alexa, simply by telling it your requirements and confirming price
“Technology can be a driving force for the supply chain, creating greater efficiencies that will help overcome operational hurdles and help reduce costs,” Sobko said. “Technology is often seen as a bad thing because it may impact jobs, but that’s not true. The industry is already facing a labor shortage, so we should be introducing more technology to help overcome some of those shortcomings and upskill people to take on more complicated tasks that machines can’t. We’re creating technology solutions that benefit all those who work in the industry.”