Detailed explanation of marine demurrage and port demurrage: how to reduce extra costs

I. Basic concepts of demurrage and port demurrage

1. Demurrage
   Refers to the cost incurred by the cargo owner for occupying the container after the free use period stipulated by the shipping company at the destination port. The shipping company provides the container to the cargo owner for free use for a certain number of days, and charges per day after the expiration.
2. Detention
   Refers to the storage fee incurred after the goods arrive at the port and are not picked up at the terminal yard after the free storage period has expired. It is collected by the port or terminal operator.
3. Reasons for the cost and calculation method
4. Demurrage
   Free period: usually 7-14 days (different shipping companies have different standards)
   Billing method: progressive billing per day, low initial costs, and may increase geometrically in the later period
   Influencing factors: container type (ordinary container/special container), off-peak season, port policy
5. Demurrage
   Free period: usually 3-7 days (different ports have different regulations)
   Billing method: calculated by the number of containers and the number of days of detention
   Special period: some ports shortened the free period or increased the rate during the epidemic
6. Practical strategies to reduce additional costs
7. Preventive measures
   Precise time planning: fully estimate the time required for customs clearance and inspection, and reserve a buffer period
   Choose a suitable shipping company: compare the free period policies and rates of different companies
   Understand the regulations of the port of destination: pay special attention to policy changes during special periods
   Purchase insurance: consider the risk transfer of demurrage/demurrage insurance
8. Transport process management
   Real-time tracking of goods: Use the shipping company tracking system to warn of delays in advance

Document preparation: Complete customs clearance documents in advance to reduce delays caused by document problems

Coordinate the transportation chain: Ensure seamless connection between trailers, warehouses and other links

3. Response after costs are incurred
   Timely communication: Actively contact the shipping company/port to explain the situation and strive for reductions and exemptions

Pick up goods in batches: Large-ticket goods can be negotiated to pick up goods in batches to reduce costs

Transfer yard storage: Long-term detention can be considered to be transferred to a yard with lower costs

Legal channels: Legal remedies can be sought for unreasonable charges

IV. Special considerations
Detention at the transit port: Demurrage may also be incurred at the transit port, which is easy to be overlooked

Returned goods: The demurrage period may be recalculated when returning

Special box types: Refrigerated boxes, frame boxes, etc. are usually more expensive

Holiday impact: Free period calculation usually includes holidays

Through systematic planning and meticulous management, enterprises can effectively control the cost of demurrage and port charges and improve the overall benefits of maritime logistics.