Tips To Avoid Detention & Demurrage Cost

Demurrage fees are unanticipated charges imposed when cargo remains in the shipping terminal for longer than the allotted time. It functions as a storage fee. If not handled quickly, this can result in significant charges. Detention and demurrage can quickly become a shipper's worst nightmare, costing thousands of dollars per day. Unexpected costs, poor planning, and poor communication all contribute significantly to the final cost of freight. How can you avoid these unnecessary fees?

Here are some tips from IAP Logistics to avoid detention and demurrage fees. We are one of the most experienced logistics companies in Saudi Arabia and one of the top international logistics company in Jeddah, Saudi Arabia. We have the best and brightest professionals managing logistics operations all over the world to assist businesses by providing seamless logistics services. We have incorporated cutting-edge technologies that make logistics management easier and faster. We were able to ensure safety in all aspects of operations thanks to advanced technologies. We offer warehouse services, freight forwarding services, cargo consolidation services, distribution services, and a variety of other services.

When your cargo arrives at the terminal, it is given a time limit in which it can stay there for free before it must be moved out. If your cargo is left there for an extended period of time, you will be charged a demurrage fee or a daily storage fee.

When demurrage fees begin, the terminal will expect you to pay them as soon as possible. Most require credit card payment because checks and guarantee letters are no longer accepted, and payment must be made in full before the terminal will release your cargo. As some have reported, demurrage fees can quickly add up to equal the value of the merchandise within the shipping container. This could be a serious problem for some businesses. That is why it is critical to follow the tips below to avoid demurrage fees in the first place.

Tips To Avoid Demurrage & Detention Fees

1. Preparing and planning in advance:

Planning and streamlining your shipment process in advance can help you avoid incurring detention and demurrage costs.
You must be proactive:

  • Allow for some buffer time when dispatching your cargo.
  • Maintain proper documentation and pay duties in advance—specific to the geography or materials in the container. Incomplete or late submission of documents will result in unnecessary demurrage and detention fees.
  • Obtain customs clearance prior to the shipment's arrival.
  • To save time, share delivery instructions with all stakeholders ahead of time. For example, communicating with the trucking company ahead of time could save time, especially in congested ports.

2. Tracking shipment using visibility platforms:

To keep demurrage and detention fees to a minimum, use a real-time visibility solution to easily track your container throughout transit.
You will be able to:

  • Predict port delays and proactively explore alternative lanes to keep your cargo moving with global shipment tracking.
  • Get real-time alerts on shipments so you know which ones are likely to incur detention and demurrage charges. This can assist you in taking action before it is too late.

3. Usage of data

A massive amount of data flows through today's global supply chain. With such a massive amount of data at your disposal, you can make informed business decisions that could save you money on demurrage and detention.
Using data from a container tracking platform, you can:

  • Understand your carriers' performance and identify the best-performing carriers by lane.
  • Determine potential port congestion scenarios well in advance.
  • Identify risky carriers or risky ports that could cause your shipments to be delayed.

Work with a reliable logistics company

IAP Logistics is a seasoned logistics firm committed to providing high-quality services. We understand that shipping freight can be stressful, so we work with you to ensure a smooth shipping process. We provide the best custom bonded warehouse services; our warehouses are outfitted with cutting-edge technology that allows us to manage the store's tangible goods more efficiently.

Our freight forwarding services are both affordable and efficient. We also offer cargo consolidation services, which means that consolidated goods received at the port are deconsolidated and sorted in accordance with the manifest. This facilitates distribution agencies and distribution schedules. You can also partially deconsolidate the stuffed containers and store them safely in our bonded warehouses. As one of the best freight forwarding company, these are the top services we provide. All of our services are extremely affordable, and they are extremely effective and safe.