Empty Return
Empty Return
Empty Return
Although shippers take fully loaded (full out) containers out of the ports and terminals, in many cases, they return the container empty, particularly when they do not intend to ship out immediately. The emptied container is critical for carriers and shipping lines as it allows them to allocate the container to another shipper. The process of returning the empty container to the shipper is commonly known as empty return or empties.
In this article, we will explore what empty returns mean, their importance to shipping operations, and practical tips for streamlining its management.
What is Empty Return
An Empty Return refers to the process of returning an empty shipping container to a designated depot or terminal after it has been unloaded at its destination. This is a standard practice in container shipping to ensure that containers are available for reuse and do not occupy space unnecessarily.
For example, when a carrier arrives at the shipper's destination or port of operation, the shipper or supply chain clears its container with the authorities before taking it out of the ports or terminals. After unloading the container, the returned empty container is commonly referred to as an empty return.
Importance of Empty Return
Empty returns are crucial in the logistics and shipping industry for:
- Equipment Utilization: Ensures that containers are quickly returned and made available for the next shipment, maximizing the utilization of shipping equipment.
- Cost Management: Helps manage costs associated with container rentals and demurrage fees by returning containers promptly.
- Space Optimization: Frees up space at the consignee’s location and avoids congestion at the destination terminal.
Operational Impact of Empty Return
In logistics, managing empty returns effectively impacts:
- Turnaround Time: Reduces the turnaround time for containers, ensuring they are ready for subsequent use.
- Inventory Management: Helps keep track of container inventory, ensuring a balance between loaded and empty containers.
- Cost Efficiency: Minimizes additional container storage and rental costs by ensuring timely returns.
Comparison with Related Terms
- Full Out: Refers to the movement of a container when it is full and loaded with cargo, in contrast to an empty return.
- Container Utilization: The efficient use of containers in both their loaded and empty states to optimize shipping operations.
- Detention: Occurs when the empty return does not happen before a particular time
Strategies For Managing Empty Return
To manage empty returns effectively:
- Track Movements: Use tracking systems to monitor the status and location of empty containers.
- Coordinate with Terminals: Work closely with carriers or receiving parties, terminals, and depots to streamline the return process and avoid delays.
- Plan Returns: Schedule returns in advance to ensure timely pickup and drop-off of empty containers.
Practical Tips For Managing Empty Return
- Automate Notifications: Implement automated notifications to alert relevant parties when a container is ready for return.
- Negotiate Terms: Negotiate favorable terms with carriers and terminal operators regarding the return of empty containers.
- Optimize Routes: Plan and optimize routes for the return of empty containers to minimize transportation costs.
How Maersk Managed Empty Returns
Maersk, a global leader in container shipping, faced significant challenges with empty container returns at the Port of Los Angeles (POLA) in early 2024. A surge in import volumes coupled with logistical bottlenecks led to a massive accumulation of empty containers at the port, occupying valuable space and incurring storage costs. This situation not only strained Maersk's operations but also caused congestion and delays for other port users.
Data from the Marine Exchange of Southern California revealed that in February 2024, over 30,000 empty containers were stacked at the POLA, representing a 40% increase compared to the same period in the previous year. This backlog resulted in increased dwell times for empty containers, averaging 15 days, which was well above the industry standard of 5-7 days.
To address this issue, Maersk implemented a multi-faceted strategy. They increased the frequency of empty container repositioning voyages, collaborated with other shipping lines to share empty containers, and incentivized shippers to return containers promptly. Additionally, Maersk invested in technology solutions to optimize container tracking and yard management, ensuring efficient handling and movement of empty containers.
These efforts yielded positive results. By June 2024, the number of empty containers at the POLA had decreased by 20%, and dwell times were reduced to an average of 9 days. This not only improved Maersk's operational efficiency but also contributed to easing congestion at the port, benefiting the entire supply chain.
Terminal49 Solutions
Terminal49 offers advanced tracking and management solutions for empty returns. Our platform provides real-time visibility into the status and location of empty containers, helping shippers manage their returns efficiently. With Terminal49, you can automate notifications, optimize return routes, and reduce costs associated with container management.
For more information or to schedule a demo, visit Terminal49.
