Industrialization and technology modernization has resulted in a breathtaking increase in global trade. Today, each country is actively involved in the Import & Export of various types of goods. International business is currently at an all-time peak with its advantages & challenges.
Most of the global trade today can not be done without an efficient Shipping Industry. The shipping business, especially maritime logistics, is the key to international trade due to its comparatively low cost and predictable timelines.
Sea transportation involves various stages, and each step needs its own time to be completed.
This article shall discuss the container dwell time and container delivery time. These times are the key indicator of the efficacy of a particular seaport.
Container dwell time is when a consignment or ships spend inside a seaport. It is an essential indicator of how efficiently the particular works and how smoothly the cargo moves through its various terminals. It also indicates the time that a shipping vessel spends at the port.
The more time a shipment spends at the port, the more it costs the shipper, who must bear several additional charges levied by the port authorities. It also means that the shipper’s realization of the costs and revenues gets delayed, affecting the cash flow.
Along with this, the container dwell time affects the shipping operators equally. The vast vessels must follow a well-defined schedule, and a delay in any transshipment port affects the complete chain. Lower dwelling time results in reduced administrative costs.
There are many factors that directly and indirectly affect dwell times. It could be due to an unexpected increase in cargo or stoppage of operations due to bad storms or inclement weather. Some ports – especially in developing nations - are also prone to frequent and unexpected strikes called by the labor unions.
Conclusion
Hence, the port dwell times also directly affect the port-to-port lead time. Port lead time is the number of days spent from the day the cargo arrives at the source port to the day it arrives at the destination port. This also includes the sea transit times, i.e., the number of days that a ship spends at the sea while traveling from one country to the other. Because the distance between the countries varies, the container delivery time also changes from one route to the other.