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Logistics Demurrage Definition: What is demurrage? Delays in shipping are commonplace and as a result, customers may incur a multitude of extra charges which they have not catered for.
One such extra charge is the Demurrage charge.
To complicate matters further, fees are applied per container as well as per day after a designated free time which varies from carrier to carrier. Demurrage may be caused due to a variety of reasons. Common among them are Consignee did not receive the documents in single or taken meaning in tamil for customs clearance Documentation received by consignee is incorrect or insufficient Container has been stopped by customer, police or other authorities for inspection of the cargo which may take longer than expected Consignee was unaware of the arrival of the cargo and was unable to do the customs clearance in time Consignee does not have the finances in order to clear the container in time Dispute between shipper and consignee Cargo received was not as per the sales order Although these reasons may not be attributed to one entity like the consignee or shipper, usually the onus of demurrage and settlement of the same falls upon the consignee.
Demurrage is an avoidable cost but if not controlled, charges can soon overtake the price of the goods which will leave many consignees no option but to abandon the cargo. As can be seen, any delays caused due to the above reasons will result in extra and avoidable costs for you.
Identify if there are any special requirements for the import of your cargo which may be held by customs or other authorities. Ensure that you communicate clearly and regularly with your shipper and the shipping line about the status of the shipping documents and the shipment respectively.
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If your shipment is under a Letter of Credit, then it is imperative that the time taken for the communication with the banks and the release of documents is considered. If your shipment is not under a Letter of Credit or if you do not require an original bill of lading, then consider single or taken meaning in tamil the shipper to use an Express Release instead of an Original Bill of Lading to avoid any delays waiting for an Original Bill of Lading.
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If the shipper insists on an Original Bill of Lading in order to safeguard his payment, then once he is paid, arrange with him to secure a Telex Release to avoid any delays waiting for an Original Bill of Lading.
Share cargo and shipment delivery instructions with all parties including the carrier, vendors and third-party providers in advance for a smooth loading and unloading process and to avoid any delays.
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Employ the services of a professional freight forwarder who can then keep an eye on the shipment for you and ensure that your cargo arrives in time without any additional costs especially demurrage.
As noted previously, proper planning is important.
While demurrage is levied by the shipping line in case of late container clearance and return, the ports and terminals will also charge the customer Port Storage Charges. Depending on the terms of sale and the terms of delivery, the choice of the port and routing to be used also becomes important.
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For example, certain inland locations in Europe may be accessed through Hamburg or Rotterdam port. But if one considers port storage, using Rotterdam may be a better option for some customers compared to Hamburg. Conclusion There are several charges involved in an ocean freight shipment and it is easy for a customer to get confused with the plethora of charges involved and the various places that these charges need to be paid.
Apart from unraveling the secrets of a freight rate sheetthe customer also needs to be aware of charges such as demurrage and storage which may be hidden in open view in some of the cases and take necessary steps to avoid these charges. Jetzt testen Michael Ardelt Michael schloss sein Studium an der TUM mit einem Doktortitel im Bereich Maschinenbau mit einem Schwerpunkt auf autonomes Fahren ab.
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