The BlueCargo Revolution | Manifest 2023 Conference Presentation 🔵
Summary
TLDRAlexandra, CEO of Blue Cargo, introduces her platform that connects trucking companies, logistics, and shippers to mitigate per diem and detention fees in the supply chain. With a network of 900 trucking companies, Blue Cargo aims to eliminate late fees by providing visibility and data interconnectivity, crucial for forecasting, managing, and mitigating costs. The platform's success is highlighted by a case study with Forest Logistics, where they saved customers $4.1 million in fees in 2022, emphasizing the importance of collaboration and data-driven solutions in today's financially driven logistics industry.
Takeaways
- 🚚 Blue Cargo is a platform that connects trucking companies, logistics, and shippers to move containers on time at the port, aiming to avoid late fees.
- 📊 The company has a large network, with 900 trucking companies using Blue Cargo daily for timely container pick-up and delivery.
- 📍 Blue Cargo operates in key locations such as Los Angeles, Long Beach, New York, and New Jersey, with a national reach.
- 🔒 The platform aims to solve the 'black box' issue in the supply chain, providing visibility and data on container movements at the port.
- 💡 The lack of interconnectability between data systems and providers has been a significant issue in the industry, leading to hidden per diem costs.
- 📈 Smaller companies often lack tracking systems, leading to a lack of visibility on per diem fees, which Blue Cargo seeks to address.
- 📝 The key to mitigating detention and demurrage fees lies in accurate data collection and forecasting, which Blue Cargo facilitates.
- 🗓️ Container availability at the port is a crucial data point, often misunderstood due to discrepancies between different sources of information.
- 📊 The average cost of detention and demurrage fees per container in 2022 was $664 nationwide, highlighting the financial impact of these fees.
- 💼 Blue Cargo's collaboration with Forest Logistics resulted in savings of $4.1 million in per diem and damage fees for their customers in 2022.
- 🤝 The importance of collaboration between brokers, truckers, and shippers is emphasized, with Blue Cargo providing a platform for such partnerships.
Q & A
What is Blue Cargo and what does it do?
-Blue Cargo is a platform that connects triage trucking companies, third-party logistics, and shippers to move containers on time at the port without late fees.
Who is Alexandra and what role does she play in Blue Cargo?
-Alexandra is the co-founder and CEO of Blue Cargo.
How old is Blue Cargo and where is it based?
-Blue Cargo is about four and a half years old and is based in Los Angeles, Long Beach, New York, and New Jersey.
What is the main problem Blue Cargo aims to solve?
-Blue Cargo aims to solve the problem of the port being a 'black box' in the supply chain, providing visibility and mitigating per diem and demurrage fees.
How does Blue Cargo help small trucking companies with per diem issues?
-Blue Cargo helps small trucking companies by providing tracking systems and accurate views of fees to manage and mitigate per diem bills.
What are the key data points needed to manage and mitigate per diem and demurrage fees?
-Key data points include container availability at the port, availability of appointments and gate transactions, and details on the empty return leg and chassis availability.
What are the average per diem and demurrage costs for containers in the US and specific regions?
-In 2022, the average cost was $664 per container nationwide, with $382 per container in New York/New Jersey and varying costs in LA/Long Beach.
What cost savings did Blue Cargo achieve for Forest Logistics in 2022?
-Blue Cargo helped Forest Logistics save their customer $4.1 million in per diem and demurrage fees in 2022.
What role does data interconnectivity play in Blue Cargo's solution?
-Data interconnectivity is crucial for Blue Cargo to provide every data point needed to understand and mitigate demurrage and detention fees, transitioning from operations-driven to financially-driven cost reduction.
What future trends in supply chain management does Blue Cargo anticipate?
-Blue Cargo anticipates a shift towards calculating the true cost of drayage moves with greater visibility on granular costs, driven by data integration and collaboration.
Outlines
🚢 Blue Cargo: Tackling Per Diem and Detention Fees
Alexandra, the CEO of Blue Cargo, introduces her company as a platform that connects trucking companies, stock party logistics, and shippers to move containers on time at the port, avoiding late fees. The company, based in Los Angeles, Long Beach, New York, and New Jersey, has the largest network of trucking companies in the U.S., with 900 using Blue Cargo daily. The script discusses the historical challenges of supply chain visibility, particularly the 'black box' nature of container status at ports. The key issue is the lack of data interconnectability between different systems. Smaller companies often lack tracking systems, leading to inaccuracies in per diem billing. The solution involves forecasting, managing, and mitigating fees, with a focus on data points such as container availability and appointment scheduling. The script emphasizes the importance of data collection for auditing and understanding the full journey of a container, moving towards a future where operations are financially driven and costs are reduced.
📊 Case Study: Reducing Per Diem and Damage Costs
The second paragraph presents a case study with Forest Logistics, a broker and dry van broker, to demonstrate the effectiveness of collaboration in reducing per diem and damage costs. Over the course of 2022, Blue Cargo helped Forest Logistics save $4.1 million for their customers by implementing the right resources, dispute processes, and documentation. The paragraph underscores the importance of collaboration and the role of regulatory bodies like the FMC in ensuring transparency. It also hints at the upcoming changes where shippers will work directly with the FMC, reducing the burden on brokers. The script concludes by highlighting Blue Cargo's role as a single platform facilitating collaboration between tracking companies, third-party logistics, and shippers, aiming to eliminate poor DMVs. The contact information provided is 'boost k56' for any further inquiries.
Mindmap
Keywords
💡Per Diem
💡Detention and Demurrage
💡Container Availability
💡Trucking Companies
💡Third-Party Logistics (3PL)
💡Data Interconnectability
💡Visibility
💡Cost Management
💡Forecasting
💡Audit Trail
Highlights
Blue Cargo is a platform that connects trucking companies, stock party logistics, and shippers to move containers on time at the port with no late fees.
The company is about four and a half years old and operates in Los Angeles, Long Beach, New York, and New Jersey with a national reach.
Blue Cargo has the largest network of trucking companies in the country, with 900 trucking companies using the platform daily.
The platform aims to fix the historically opaque part of the supply chain, specifically the period after a container arrives at the port until it leaves.
Data interconnectability between different systems and providers has been missing, leading to inefficiencies and costs.
Smaller companies often lack tracking systems, leading to inaccurate views of fees and potential overcharges.
The key to mitigating detention and demurrage fees lies in forecasting, managing, and mitigating these fees with accurate data.
Understanding container availability at the port is crucial, as discrepancies between data sources can cause confusion.
Fixing the 'black box' of the supply chain involves collecting and analyzing data points for better cost management.
Data points include container availability, appointment availability, gate transactions, and empty return leg restrictions.
The true cost of drayage is becoming more visible, with an average of $664 per container nationwide in 2022.
In New York and New Jersey, the average detention and demurrage fee per container was $382 in 2022.
Blue Cargo's collaboration with Forest Logistics resulted in savings of $4.1 million in per diem and damage fees in 2022.
The right resources, dispute processes, and documentation are key to reducing detention and demurrage fees.
The FMC is becoming more involved, requiring shippers to provide proofs and screenshots for fee disputes.
Blue Cargo offers a single platform to connect all stakeholders for efficient container movement and fee management.
The platform aims to eliminate poor visibility on detention and demurrage fees, providing a solution to a significant industry challenge.
Transcripts
a six digit per diem build that's what
we're talking about now do you think
you're being overcharged for per diem do
you know how to mitigate detention and
demorrhage fees or do you actually know
just where to find the documentation and
the proofs to be in your right
I'm Alexandra co-founder and CEO of blue
cargo blue cargo is a platform that
connects triage trucking companies stock
party Logistics and shippers to move
containers on time at the port with no
late fees the company is about four
years and a half old we're based in Los
Angeles Long Beach and New York New
Jersey and with national Rich what we
have is the largest network of trucking
companies in the country so 900 riots
trucking companies are using blue cargo
every day to pick up and deliver the
containers on time at the port
so what's happening is that historically
the part has been the major black box of
our supply chain so there's this big
thing in the industry you always know
where your box is until it arrives at
the port and then you only know when it
leaves the port so that's what we're
here to fix so does any of these
resonates experiencing hyper GM costs no
visibility on damage don't know how to
mitigate the emerging detention fees
so the key part here is the data and
what has been missing is the
interconnectability between the
different Data Systems and providers so
I will just give two examples so I spend
like my time like visiting warehouses
Freight forwarders tracking companies
and when you talk about the small ones
and you ask do you have any per GM
problems they will all tell you no I
don't and then I'm like okay can I see
your stack of paper here and maybe can
you see if you have a per diem Bill and
then it happens that everyone has a per
diem Bill 20K
1800 bucks some are small and so
especially the ones the small ones have
no tracking system or any way to just
have an accurate view of the fees we're
talking about
so what we need to fix is one
forecasting second managing those fees
and third mitigating those fees
so talking about the data again because
this is where it's difficult the first
data point is your container
availability at the Port when did the
container actually become available for
pickup and this is the data you would
find way a multiple uh sources with
multiple different data points so if you
take the steamship Line website they
will tell you container is available
arrived at the ports then when you call
your tracker they would say oh no I
can't pick up that container and you're
like why the shipping line tells me it's
available so it's because the container
is in a yard closed area and if you
don't have access to your locations but
you don't know what that means so
basically fixing this black box and
being able to have every data point to
understand and mitigate demo region
detention is what the future is going to
be about because we're shifting from
only operations driven to also
financially driven and reducing our cost
so the data points we're talking about
one container right living at the Port
being available for pickup second
availability of appointments and gated
that transaction and then there's all
the empty return leg that is actually
the start of per diem so what was the
date schedule what was the empty return
restrictions at the port and were there
appointments available with also chassis
available so that's all the data points
that you need to collect to tell the
full story of a container and be able to
audit Trail what happened to this
container in this journey
so we are getting to the time of what we
call the true cost of dryad so that's
something before uh the pandemic and
during the pandemic we had little
visibility on what are the actual
granular costs of a dry Edge move and
now we're moving to knitting best
information and calculating the true
cost of dryads
so just a bit of sizing like what are
those detention and damage fees we're
talking about so in 2022 for one
container average in um Nationwide is
664 dollars per container Nationwide for
any container average so of course it
means there's containers you pay
hundreds of thousand for and hopefully
some uh that you pay zero dollar for and
in New York New Jersey where we saw a
lot of the cargo shifting after uh the
pandemic and the congestion in La Long
Beach it was
382 dollar per container La Long Beach
being somewhere in the middle so yes if
you don't know your per diem and demo HV
is the moment to stop just acknowledging
the cost and then finding Solutions
so one case study uh to prove how
collaboration can work so we're working
with Forest Logistics that's uh I know
Vince is also here on the show today
they're a broker truck broker dry Edge
broker and uh over the year of 2022 we
were able to help them save their
customer 4.1 million in per diem and
damage in one year with the right
resources the right dispute process and
the right documentation so that's the
key and it's becoming even more
important this collaboration in this
partnership NADA ostra and the FMC is
starting in 2B in playing here and
trackers are going to be able to provide
their shippers for the actual proofs and
screenshots because shippers are gonna
also want to remove that burden and work
directly with the FMC somewhere here so
that's what blue cargo is so a single
platform to connect tracking companies
third-party Logistics and shippers
together to move containers on time at
the port with knowledge fees so finally
you can say goodbye to poor DMVs and
we're in boost k56 if you have any
question
thank you
[Music]
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