This fireside chat recap is from FreightWaves’ Intermodal Summit.
FIRESIDE CHAT TOPIC: How the Ocean Shipping Reform Act could affect drayage operations
DETAILS: Nimesh Modi, CEO of drayage marketplace BookYourCargo (BYC), dives into the Ocean Shipping Reform Act that would require common ocean carriers to adhere to best practices and regulations around detention and demurrage charges. Modi describes the problems this reform would help solve and how technology could improve from transparency of common carrier operations.
SPEAKER: Nimesh Modi, CEO of BYC
BIO: For the past seven years, Modi has been part of the BYC team, initially as vice president, then chief operating officer and now CEO. Currently based in New York, he is a supply chain thought leader with a deep understanding and experience in logistics, transportation management, ocean freight and drayage. Modi utilizes his comprehensive knowledge and global insight to position himself at the forefront of industry innovations and trends, providing the most optimized solutions for clients.
“Demurrage and detention is a highlighted point of this whole bill. When you see the value of these [charges], it’s humongous. Sometimes the value of the container looks very small compared to the charges on the container for staying at the terminal for three to four weeks.”
“It used to take two months to get a container [in the United States] back to China for reexport. Now it has increased substantially because a lot of those containers are delayed due to demurrage issues.”
“[If this reform passes] people will be more educated. They will now know if they don’t pre-plan or approach their supply chain proactively, it’s going to cause more problems.”