Model for Demurrage Elimination and Port Logistics Efficiency in Emerging Economies
Abstract
This proposes a comprehensive model for demurrage elimination and port logistics efficiency tailored to the structural and institutional realities of emerging economies. Persistent demurrage costs in these contexts are driven by port congestion, fragmented information flows, inefficient customs procedures, limited infrastructure capacity, and weak coordination among port stakeholders. These challenges not only increase logistics costs but also undermine trade competitiveness and economic growth. The proposed model adopts a systems-based approach that integrates operational, technological, regulatory, and institutional dimensions of port logistics to address the root causes of demurrage rather than its symptoms. The model is structured around four interrelated pillars. The first pillar focuses on process optimization, emphasizing streamlined vessel berthing, cargo handling, documentation, and cargo clearance workflows. The second pillar addresses digital integration through port community systems, real-time cargo tracking, and data-sharing platforms that improve visibility and coordination among shipping lines, terminal operators, customs authorities, and freight forwarders. The third pillar emphasizes governance and regulatory alignment, highlighting the role of harmonized procedures, performance-based service level agreements, and accountability mechanisms in reducing delays. The fourth pillar concentrates on capacity and capability development, including infrastructure planning, workforce training, and institutional strengthening. By combining these pillars, the model enables proactive demurrage prevention through predictive planning, early identification of bottlenecks, and coordinated decision-making across the port logistics ecosystem. The framework is designed to be adaptable, allowing implementation to be phased according to resource availability and institutional maturity. Expected outcomes include reduced cargo dwell time, lower logistics costs, improved port throughput, and enhanced reliability of maritime supply chains. This contributes to the port logistics literature by offering an integrated, context-sensitive model that moves beyond isolated technical interventions. It provides policymakers, port authorities, and logistics operators in emerging economies with a practical blueprint for improving port performance, supporting trade facilitation, and strengthening regional and global supply chain integration. The model supports sustainable trade-driven development.
How to Cite This Article
Chineme Scholar Okonkwo, Jibril Agbabiaka, Olufunmilayo Ogunwole, Winner Mayo, Obinna ThankGod Okeke (2020). Model for Demurrage Elimination and Port Logistics Efficiency in Emerging Economies . International Journal of Multidisciplinary Research and Growth Evaluation (IJMRGE), 1(5), 552-562. DOI: https://doi.org/10.54660/IJMRGE.2020.1.5.552-562
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