BlueCargo Reduces Logistics Late Fees by Tracking Containers in Port Terminals

BlueCargo Raises $11 Million to Optimize Logistics and Reduce Late Fees

In a significant development for the logistics industry, BlueCargo has secured $11 million in a new funding round led by Soma Capital and Left Lane Capital. The company’s innovative solution is designed to optimize logistics in port terminals, reducing late fees for drayage trucking companies and shippers.

A Brief History of BlueCargo

When I first covered BlueCargo in the past, the startup was working closely with port terminal companies to optimize container storage. For instance, the first container destined to leave the terminal would be stored at the top of a pile. However, over the years, BlueCargo has undergone significant changes and pivoted its focus.

The Pivot: From Container Storage to Dispatching, Planning, and Scheduling

In 2019 and 2020, BlueCargo shifted its attention towards providing software solutions for dispatching, planning, and scheduling for truckers and shippers. According to co-founder and CEO Alexandra Griffon, "We don’t sell to ports. Instead, we connect to all ports and provide a scheduling and dispatching platform."

The Challenges of Logistics During the Pandemic

Logistics has been a pressing concern in recent years, particularly due to COVID-19 restrictions that have impacted different parts of the world depending on the season. Griffon highlighted the severe issues faced by logistics companies during this time: "In January 2022, there were 103 container vessels waiting at anchor in Los Angeles/Long Beach."

This bottleneck led to a surge in late fees as containers sat idle for extended periods due to restrictions and congestion. Trucking companies received invoices for demurrage and per diem fees six months later, which they often forwarded to the shippers. However, big corporations often requested proof of payment before honoring these fees.

The Problem: Late Fees Exploding

Griffon explained that late fees have become a significant concern in 2021 and 2022, with tens of millions of dollars in fees being incurred. She shared an example of Forrest Logistics, which saved over $5 million in fees by using BlueCargo’s platform.

How BlueCargo Helps: Aggregating Data for Efficient Logistics

BlueCargo aggregates data on a single platform to help manage late fees effectively. On one hand, trucking companies can track shipments and follow the statuses of various containers. On the other hand, the platform tracks gate schedules and helps trucking companies secure appointments to pick up and drop off containers.

Key Features of BlueCargo’s Platform

Tracking Demurrage, Detention, and Per Diem Fees: The platform monitors fees across multiple ports, replacing Excel spreadsheets for some logistics companies.
Container Lifecycle Tracking: BlueCargo creates supporting documentation to dispute late fees.
Scheduling and Dispatching: The platform provides a scheduling and dispatching tool for truckers and shippers.

The Future of Logistics with BlueCargo

BlueCargo’s innovative approach has garnered significant attention in the logistics industry. With its $11 million funding round, the company is poised to continue developing solutions that optimize logistics and reduce late fees. As the demand for efficient logistics continues to grow, BlueCargo is well-positioned to address this pressing need.

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