Corporate
01/07/2019

Freight Forwarder Streamlines Customs Clearance for Clients

Traxens smart geofencing reduces lead times and maintains cargo value.

The Challenge : 
• Reduce time spent clearing customs
• Reduce warehousing costs associated with customs clearance delays
• Improve pickup and delivery scheduling efficiency

 The Solution

  • Traxens Smart Containers and data analysis

The Results

  • Saved days in customs clearance for shippers
  • Enabled shippers to avoid excess warehouse and trucking fees
  • Increased client satisfaction

Accelerating Customs Clearance

Clearing shippers' cargo through customs as quickly and smoothly as possible is essential for BCOs. Depending on the cargo shipped, potential problems can range from missing documents to improper container loading and additional inspections. An international BCO wanted to improve the clearance process for its shippers, but when shippers provided incomplete or inaccurate paperwork at port, cargo was inevitably delayed. Delays affected everything from timely cargo release to excess warehouse costs, rescheduled trucking appointments, payment delay, and ultimately, slower time to market for the shipper.

Advance Knowledge Makes the Difference

When the BCO learned about Traxens smart containers and data analysis solutions, it decided to conduct a trial of Traxens and its geofencing notification capability. Traxens smart devices are attached to containers where they continuously collect data. They include built-in sensors and high-precision geolocation capabilities. During the journey, Traxens data is automatically sent over global cell links to Traxens for analysis and reporting. The BCO received a geofencing alert when the vessel was within 48 hours of port, and it could log into the Traxens platform at any time from a smartphone to check progress. 

Accelerating Customs Clearance 

With 48 hours notice, the BCO can ensure that all required paperwork is ready when the container is offloaded at port. Initiating customs clearance early can save several days in lead time and avoid additional warehousing costs. Shipments now clear customs quickly, enabling the BCO's clients to avoid extra costs up to 1.75% of the cargo value.

Real-time information also enables the BCO to schedule efficient pickups and deliveries—avoiding extra costs of idle trucks and containers. The BCO simplified financing arrangements as well. With correct information available electronically, the BCO can ensure that invoices are approved on time and documents are filed appropriately. This helps shippers improve their cash flow. Every step is documented and time-stamped to ensure accurate reporting. 

Traxens smart containers and data analysis have given this BCO an advantage over competitors who rely on traditional communication, filing, and clearance processes. Shippers gain better financial and cargo predictability and avoid unnecessary costs. The entire import/export process operates more smoothly than ever before, which makes everyone happy. And the BCO is now looking at new ways to add even more value to the services it can offer shippers.

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