Excessive costs of inefficient port cargo-handling
Nature
The costs of inefficient cargo handling at ports increases transport expenses. Handling costs represent from 20 to 30% of the total expenditure for the shipment, some twice the amount required for the fuel. Between 5 and 10% of the value of goods is made up of these costs. Handling charges include equipment and manpower usage, but also idle time. Inefficient overtime and night shifts contribute to costs, as do poor preparation of bulk items for shipments — for example, in small packagings instead of pallets or containers. Port regulations often overlook packing efficiencies that shippers can be obliged to follow. Extra costs are borne by the idle time of ships. The inefficiency of cargo-handling lengthens port stays, fuel consumption, shipboard labour costs and overall length of voyages.