Are You Paying Too Much For Logistics?

Hidden delivery costs can add thousands to stores loading, warns Alex Taylor, Managing Director of Hutton’s, who has added a new section to the company’s website to help customers take account of likely additional charges when they arrange deliveries at particular ports.

“Due to legislation like ISPS and Health and Safety regulations there are an increasing number of restrictions on suppliers being able to deliver direct to vessels, especially to tankers in terminals where most deliveries are made by barge. These barge costs can be very high and add a large ‘hidden’ cost to their stores budgets,” he warns.

“When placing orders we are concerned that many customers just look at the cost of the stores and do not take into account the additional cost of transport to the vessel. But I have heard of cases where the cost of barge delivery has been as high as $10,000!

“For example, Rotterdam is a major hub for ship stores and is well known for it’s competitive chandlers but many deliveries require the use of a barge and barges in Rotterdam are very expensive and can result in huge bills which are often hidden in the Ship’s Agent’s disbursement account. I want to ensure that Hutton’s customers are aware of these problems so that they can plan accordingly – either to avoid barge transfer or to take account of it.”

Acting to help customers with important information about loading costs at various UK ports, Hutton’s has added a new table to its website which advises customers of any supply restrictions on UK berths. Alex Taylor explains: “We are keen to assist our customers to minimise their supply chain costs.”

Alex points out that UK ports do not always suffer these problems and often allow supplying from a truck, even in oil terminals. He advises: “Many berths at oil terminals in Tees, Milford Haven and Immingham do not require barges which can reduce the overall supply ‘bottom line’.”

To view the new delivery chart table go to the Hutton’s website:

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