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How to avoid demurrage and port demurrage in international logistics shipping?

First of all, Xiao Yi explained the meaning of demurrage and demurrage.

Demurrage: Demurrage refers to the cost incurred when the goods stay at the port of loading and unloading for more than the free period or free stacking period. When the goods are not loaded and unloaded in time and occupy the resources of the container or yard, the port or shipping company will charge demurrage fees as compensation.


Detention: The demurrage refers to the cost incurred when the goods exceed the free period or free stacking period at the cargo transfer point (usually the port of destination of the goods). This means that the time the goods stay at the destination port exceeds the allowable time stipulated in the contract, and the port or shipping company will charge a demurrage fee.


Here is an additional addition to the meaning of the container-free period and the stack-free period.

Free Time for Container: The free time period refers to the time limit for the free use of containers provided by the shipping company at the port. During the free period, the goods can stay in the port or warehouse for free. After the free period, the demurrage fee will be charged.


Free Time for Storage: Free Time for Storage refers to the time period during which goods are stored for free in ports or warehouses. During the free storage period, the goods can be stored in the yard for free. After the free storage period, storage fees will be charged.


Demurrage and demurrage are charges for different time periods and locations. Demurrage refers to the cost of goods staying in the port of loading and unloading beyond the free period, while demurrage refers to the cost of goods staying in the port of destination beyond the free period.

The container-free period refers to the time period during which the shipping company allows the goods to use containers for free at the port for loading, unloading and transportation. Demurrage charges will start to be charged after the free container period has expired.

The storage-free period refers to the time limit provided by the port or warehouse for free storage of goods. After the storage-free period is exceeded, the storage fee will be charged.

International logistics transportation demurrage

So back to the question itself? How to avoid demurrage and port demurrage in the process of international logistics shipping? Xiao Yi summed up seven points for attention


First, adjust the supply chain plan: reasonably plan and arrange the transportation time of the goods to ensure that the goods can reach the destination port on time. Work closely with logistics freight forwarding companies and shipping companies to ensure that the loading, unloading and transportation plans of the goods are in line with the shipping schedule.

Second, book the ship's position and yard space in advance: contact the shipping company and port (or the entrusted forwarder) in advance to book the required ship's position and yard space. Ensure sufficient resources are available for loading, unloading and storage of goods to avoid demurrage due to insufficient resources.

Third, strengthen information sharing and communication: maintain close communication and information sharing with participants in all links, including suppliers, logistics and freight forwarding companies, shipping companies and ports. Make sure to keep abreast of the status of the goods, shipping schedules and port conditions so that timely adjustments can be made.

Fourth, go through the necessary procedures and documents in advance: including customs declaration documents, licenses, certificates, etc., to ensure that the relevant procedures can be completed in time when the goods arrive at the port of destination, and avoid demurrage fees due to delays in procedures.

Fifth, strengthen the visualization and tracking of the supply chain: use the logistics management system and technical tools to track and monitor the transportation process of goods in real time. Knowing the location, transportation status and estimated time of arrival of the goods in time will help to adjust the plan in time and avoid delays.

Sixth, reasonable planning of loading and unloading time and human resources: ensure that when the goods arrive at the port, there are sufficient human resources and equipment for loading and unloading operations. Reasonably arrange loading and unloading time to avoid demurrage charges due to loading and unloading delays.

Seventh, comply with relevant regulations and requirements: understand and abide by the regulations and requirements of shipping companies and ports, including container-free period, stack-free period, loading and unloading procedures, etc. Ensure cargo is in compliance, loaded and unloaded on time and picked up on time.


Finally, what Xiaoyi wants to say is that if demurrage and port demurrage are really incurred, it is important to maintain communication and negotiation, and to actively cooperate with relevant parties. According to the specific situation and the reasons for the expenses, you can consider consulting with the shipping company, port, freight forwarding logistics company or legal experts to obtain more specific suggestions and solutions.


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