Demurrage

Demurrage is the fee the terminal charges for cargo that remains on-site past the last free day. Demurrage fees are charged daily per container left at a terminal until its pickup, whether at an ocean or rail terminal. 

Each port of entry can have its own rules for calculating demurrage and determining a container’s allotted free time. This makes it extremely important for shippers to familiarize themselves with the regulations of the specific ports through which they will be transporting cargo. 

There are a few different reasons for shippers receiving demurrage fees, the most common being: 

• The receiver of the goods (the consignee) was not aware of the cargo’s arrival date, so they could not arrange customs clearance or pickup soon enough
• The consignee received incomplete or late customs documentation and was delayed in picking up cargo 
• A customs exam or hold caused a delay in processing the container 
• The received cargo doesn’t match the sales order, leading to a dispute between the consignee and shipper 

Some common tips for avoiding demurrage fees: 

• Plan ahead to ensure that truckers are available to pick up a container as soon as possible 
• Make a backup plan for how the container will be picked up if the initial trucker/transport option is unavailable 
• Keep in touch with your forwarder and study the local port’s regulations and customs process so you know exactly where your container is 
• If your shipment requires special permissions or may be likely to be held by customs, then consider requesting additional free days from the terminal to make up for foreseeable processing delays