The BlueCargo Revolution | Manifest 2023 Conference Presentation 🔵

Summary

Alexandra, 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

00:00

🚢 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.

05:02

📊 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.

Keywords

💡Per Diem

Per diem refers to daily charges that shipping companies incur when containers are not picked up or returned on time. This concept is central to the video's theme as Blue Cargo aims to help companies mitigate these fees by ensuring timely container movements. Alexandra discusses how businesses often unknowingly accumulate significant per diem bills due to a lack of visibility and management.

💡Detention and Demurrage

Detention and demurrage fees are charges incurred for holding containers beyond the allowed free time. The video highlights the financial burden these fees can impose on companies, and Blue Cargo's platform provides solutions to reduce and manage these costs. Alexandra mentions the confusion and costs associated with these fees and how accurate data can help mitigate them.

💡Container Availability

Container availability refers to the time when a container is ready to be picked up at the port. The script emphasizes the importance of having accurate and timely data on container availability to avoid unnecessary fees. Blue Cargo helps companies track this information to ensure timely pickups.

💡Trucking Companies

Trucking companies are crucial players in the logistics chain, responsible for moving containers from ports to their destinations. Blue Cargo connects these companies with shippers and third-party logistics providers to streamline container movements and reduce fees. The video mentions the extensive network of trucking companies using Blue Cargo daily.

💡Third-Party Logistics (3PL)

Third-party logistics providers offer outsourced logistics services, including transportation and warehousing. The video discusses how Blue Cargo integrates with 3PLs to ensure seamless container movement and reduce detention and demurrage fees. Alexandra highlights the collaboration between different logistics stakeholders facilitated by Blue Cargo.

💡Data Interconnectability

Data interconnectability refers to the seamless exchange and integration of data between different systems and providers. The script highlights the lack of interconnectability as a major issue in the logistics industry, which Blue Cargo aims to solve by providing a unified platform for accurate and comprehensive data tracking.

💡Visibility

Visibility in logistics refers to the ability to track and monitor shipments throughout the supply chain. The video emphasizes the lack of visibility at ports and how Blue Cargo addresses this issue by providing detailed data on container movements. This visibility helps companies avoid unnecessary fees and optimize their logistics operations.

💡Cost Management

Cost management involves controlling and reducing expenses related to logistics operations. The script focuses on how Blue Cargo helps companies manage and lower their per diem, detention, and demurrage fees by providing accurate data and forecasting tools. Effective cost management is crucial for maintaining profitability in the logistics industry.

💡Forecasting

Forecasting in logistics refers to predicting future events and conditions to optimize operations and reduce costs. The video discusses the need for accurate forecasting of container availability and movements to mitigate fees. Blue Cargo's platform provides tools to improve forecasting accuracy, helping companies avoid unexpected charges.

💡Audit Trail

An audit trail is a detailed record of all transactions and activities related to a specific process. The script mentions the importance of having an audit trail for container movements to verify and dispute fees. Blue Cargo helps companies maintain a comprehensive audit trail, ensuring transparency and accountability in their logistics operations.

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]