Dwelling time is one important indicator in the logistics and customs industry, which affects the efficiency of the distribution of goods at the port. For importers, exporters, and logistics service providers, understanding dwelling time is the key to increasing the efficiency of the supply chain. This article will discuss what is dwelling time,
The causative factors, as well as effective solutions to overcome them.
What is dwelling time?
Dwelling time refers to the waiting time of the goods from arriving at the port to finish through the Customs Administration process. This process includes inspection of documents, customs processing, and transportation out of the port.
For example, in the port-
Indonesia's large ports such as Tanjung Priok, Dwelling Time are the main issues because they affect the national logistics flow. Based on international standards, the ideal dwelling time is less than 3 days, but some ports in Indonesia often exceed this figure.
Factors causing long dwelling time
Customs Administration
The duration of the import document checking process can extend the dwelling time, especially if the document is incomplete or there are obstacles in verification.
Port capacity
Ports that are too dense often causes goods to be stuck longer due to limited storage space.
The readiness of the importer
Lack of completeness of documents from the importer slows down the administrative process.
Lack of digital infrastructure
There are still many ports that use the manual process, thus extending processing time.
Long dwelling time impact
Additional cost
The company must pay extra storage costs for goods detained at the port.
Distribution delays
Long dwelling time causes interference with the supply chain, so that the goods arrive late at the final destination.
Decreased competitiveness
Low efficiency makes companies less competitive in the market.
Solution to reduce dwelling time
Utilization of Bonded Logistics Center (PLB)
PLB as managed by PT Transcon Indonesia provides a solution to storing goods outside the port with a more efficient administrative process.
Digitalization of the Customs System
Implementation of digital technology, such as document automation systems,
Helps speed up the administrative process.
Collaboration with Port Authority
Port businesses and authorities can work together to improve operational efficiency, including better scheduling.
The advantage of reducing dwelling time
Cost efficiency
Reducing dwelling time means reducing logistics costs that must be incurred by the company.
Distribution acceleration
Goods can arrive at the destination faster, increasing customer satisfaction.
Increased competitiveness
Efficient companies have a competitive advantage in the market.
Understanding and managing dwelling time is an important step in increasing logistics efficiency. With solutions such as utilizing the bonded logistics center provided by PT Transcon Indonesia, businesses can reduce dwelling time while reducing operational costs.
Have you maximized your logistics efficiency? Contact PT Transcon Indonesia now and enjoy the best logistics services that support the smooth running of your business!