Does this sound familiar? Your cargo finally arrives at the port, but then you get a surprise bill for "demurrage" and "detention." These fees can add up quickly and hurt your budget.
At China-Latin Logistics, we help our clients avoid these costly charges. Let's break down what these words mean and how you can avoid them.
Demurrage vs. Detention: What's the Difference?
It's simple:
Demurrage: This is a charge for your container sitting inside the port for too long after the ship arrives. Think of it as a "parking ticket" at the port.
Detention: This is a charge for your container sitting outside the port for too long. This happens after you pick up the container from the port, or if you keep the container for too long before returning it to the port. Think of it as "renting" the container for extra days.
In short: Demurrage is for time at the port. Detention is for time with the container.
Why Do These Charges Happen?
Ports and shipping companies need to keep things moving. If containers sit around, it causes congestion. These fees encourage everyone to pick up and return containers quickly.
5 Easy Tips to Avoid These Fees
You are not powerless! Here are some simple steps you can take:
Get Your Paperwork Ready Early: The biggest cause of delays is slow paperwork. Make sure your commercial invoice, packing list, Bill of Lading, insurance policy and other documents are 100% correct and sent to us as early as possible. This helps us clear customs fast.
Know Your Free Time: Every shipping line gives you a certain number of "free days". This is the time you have to pick up the container from the port (for demurrage) or return it (for detention) without paying. Always ask your freight forwarder how many free days you have!
Plan Your Trucking: Don't wait until the last minute to book a truck to pick up your container. Coordinate with your inland transport company in advance to make sure they are ready to go as soon as your cargo is released.
Empty the Container Quickly: Once the container is delivered to your warehouse, unload it as fast as you can. The clock on detention fees is still ticking until you return the empty container to the port or designated depot.
Work with a Proactive Agent: This is the most important step. A good logistics partner doesn't just ship your goods, they keep an eye on the deadlines for you.
At China-Latin Logistics, we do more than just book your shipment. We:
Remind you about important deadlines.
Help push for the release of your documents.
Keep you updated on the status of your cargo.
We help you steer clear of these hidden costs, saving you time, money, and stress.
Let us handle the logistics, so you can focus on your business.
Written by YEN
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