Demurrage Reduction Startegies in Logistics: A Case of Nkaonde Border in Zambia

Abstract

The efficient movement of goods in logistics is vital for supply chain effectiveness. However, demurrage, a charge levied for the extended use of transportation equipment or facilities, significantly affects logistics performance. This study investigates demurrage reduction strategies in logistics, focusing on the Nakonde border in Zambia. Despite being a critical transit point for regional and international trade, Nakonde faces challenges such as inadequate infrastructure, inefficient customs clearance processes, and poor stakeholder coordination. These issues lead to delays, increased costs, and disruptions in the supply chain. The study employed a quantitative research approach, gathering data from 72 logistics stakeholders, including customs officers, logistics managers, and freight forwarders. Findings reveal that while existing strategies have moderate effectiveness, improvements in infrastructure, technology, and stakeholder collaboration are essential. Key recommendations include investing in modern infrastructure, implementing advanced technological solutions like real-time tracking, and fostering stronger stakeholder partnerships. These strategies are expected to enhance logistics performance, reduce costs, and improve supply chain efficiency at Nakonde and similar logistics hubs. Keywords: Demurrage, Logistics, Nakonde Border, Supply Chain, Infrastructure, Stakeholder Collaboration, Customs Clearance, Real-time Tracking, Cost Reduction