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- Pieter Potgieter
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Hubbell, a Connecticut-based electrical supplier, in mid-2021 made a key shift in its import strategy, switching from a non-vessel-operating common carrier-managed door model to in internally managed port container yard with drayage support that included managing vendor delivery duty paid to container yards. This change occurred as NVOCCs and container lines ceased the operation of door deliveries from inland rail terminals as congestion increased. That change exposed Hubbell to much higher demurrage fees as congestion crippled US marine terminals and stalled intermodal rail shipments. Hubbell turned to Gnosis Freight for help in managing master bills of lading and container numbers, which enabled the importer to avoid additional storage fees and delays, a move Hubbell estimates resulted in $2 million in cost reductions. Pulling imports from key North American container ports, including the Los Angeles-Long Beach port complex and Savannah/Charleston, Hubbell gained greater visibility on rail discharge ETAs, avoiding demurrage, while keeping cargo flowing through regional distribution centers and manufacturing locations through the US. This case study will explore how using Container Lifecycle Management software to coordinate what is traditionally a spreadsheet- and email-based process can result in tangible savings in accessorial charges.