Navigating the Complexities of PoD Changes in Shipping

A bridge collapse, sudden port strikes, hurricanes, trade wars, Houthi attacks, and the accompanying route deviations from crucial ocean trade lanes…these are just a few of the disruptions that have plagued the shipping industry. They all share a common factor: they are likely to impact the final leg of a shipment’s ocean journey, resulting in a port of destination (PoD) change.

Let’s explore the challenges posed by last-minute port of destination (PoD) changes, why these disruptions can have such a significant impact, and why dirty data is such a major problem.

Why This Really Matters

The scale of disruptions at the final leg of the ocean journey can have a significant impact on logistics companies and stakeholders. Although PoD changes affect only 0.1% of all shipments on average, this can be considerable for logistics companies that handle large volumes of cargo monthly. A company that handles 50,000 containers annually, for example, may experience around 50 PoD changes. The consequences of being unprepared can be substantial:

• Customs and taxes: different states or countries mean different customs procedures and taxes, leading to inaccuracies in billing and, in some cases, an inability to bill customers.
• Haulage management: port labor and other resources, such as truck drivers, must be redirected. If the reroute involves larger distances, different groups of workers are required. If teams are not notified in time, additional costs are incurred for the cargo.
• D&D costs: ports have their own detention and demurrage (D&D) fees, leading to varied costs. This can also lead to inaccuracies in billing and, in some cases, an inability to bill customers.
• ETA changes: your shipment’s estimated time of arrival (ETA) changes, affecting schedules and planning.

Dirty Data is a Problem

This problem is acute and costly…so how is it possible that relevant stakeholders are still not being accurately notified about PoD changes until AFTER freight was brought to an unexpected site? Sometimes there are inaccurate/false notifications before a suspected PoD that later fails to materialize. The answer lies within the data (more specifically, the dirty data).

In the logistics ecosystem, data is known to be dirty/messy. That’s why no one has managed to standardize it. False changes are also a major problem. Only 1 out of 50 shipments from reported PoD changes actually happen! 

Invalid Exception – Example 1

A shipment was intended for Egypt. The carrier originally indicated the freight was headed towards the port of El-Dekheila in Egypt, but then showed eight consecutive days with the port of Piraeus, which is almost 800 kilometers away, as the PoD. Then El-Dekheila, where the shipment eventually arrived, was again named as the PoD. 
This is a headache, in terms of resources and planning, for freight forwarders without the benefit of Windward’s Maritime AI™ platform and new exception: the Port of Destination (PoD) Change. Windward’s Ocean Freight Visibility solution cuts through the confusion to display a single PoD during the process: El-Dekheila.

Valid Exception – Example 2

The following log also shows an anomaly. A shipment’s PoD was reported as Long Beach (USLGB). But during the last three days of the shipment, it was changed to Los Angeles (USLAX). The customer was notified about a PoD change exception.

Windward’s new report, PoD Changes are Essential, But Dirty Data Has Everyone Falling Short, highlights the significant impact of PoD changes, dirty data complications, and how Windward’s Maritime AI™ solutions can help. 

Check out the report!