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Drayage costs may be reduced with XenonFS

By Patrick Burnson, Executive Editor
October 29, 2013

XenonFS, a full service drayage technology management provider, recently announced that it is offering a new approach to improve drayage service while reducing costs. 

According to the company, drayage analytics are used to quantify the total time and costs associated with first and last-mile cargo moves. By using customized tools to reduce operating staff time and costs, shippers may save up to 90 percent on many drayage moves, says Stacy Lange, director of key accounts for XenonFS.

In an interview with LM, he observes that if a drayage move is not carefully coordinated or if communication from the provider is lacking, shippers can incur additional costs such as demurrage, detention, storage, and waiting time.

“In addition, they could find themselves hit with ad hoc charges such as penalties, fines, or even fees for unutilized crews,” says Lange. “With advance communication and planning, these charges can often be avoided or mitigated.”

XenonFS cites the amount of time logistics companies spend managing end-to-end drayage moves and the hidden costs they incur as a result. The man-hours associated with such tasks as finding the right vendor, verifying compliance, establishing credit, making payments and tracking the shipment, often are not evaluated as a part of the drayage costs. These indirect costs add up quickly, however, especially on unfamiliar and complicated drayage shipments. 

XenonFS’s founders set out to fill a gap in the market created by these inefficiencies. Their technology connects all parties in a multi-modal move, both electronically and operationally. Drayage information is consolidated into a single system in one location via XenonFS’s web portal or by integrating with their customers’ existing operating software.

“This ensures that drayage movements are completely aligned with connecting carriers and shipments move smoothly from origin to destination,” says the company. 

About the Author

Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).

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