If you’re expecting delays, attempt to ask for extra free days. Look through the charges and make sure you will be able to meet the terms. Understand shipping contract: Understand and negotiate contracts with the shipper.Simply enter the details of your shipment, the estimated discharge date, and the estimated truck gate-out day, and the calculator will let you know what your charges should be. To calculate the cost of demurrage on a particular shipment, check out this demurrage and detention calculator. It’s important to note that shippers make the majority of their revenue from moving freight, not from these charges. Having a hold up of goods in containers means that the containers can’t be used by the shipping company, therefore shippers are losing potential revenue streams. The demurrage charge will be if the container remains in the port terminal after the free days.ĭemurrage charges are put in place to incentivize importers to move goods through and pick up goods from the port sooner, and exporters to not bring goods to the port too early. This will be the time container arrives at the port for export, until the container is loaded onto the ship. The demurrage charge will be if the container remains in port after the free days. This will be the time period from container arrival at the port terminal from the ship through to release of the container from the port terminal. Therefore it’s important to understand what demurrage is to help maintain profitability in your trade transaction. On top of rising freight costs, these extra charges can affect the profitability of your trade. The charges will be per day, will be paid to the shipping company and will be specified in the contract with your shipping company. There are a set number of ‘free’ days for importers and exporters to time to get goods in and out of ports and the logistics involved in this. Specifically, it is when a charge is payable to the owner of a chartered ship on the failure to load or discharge the ship within an agreed time period. Demurrage is a result of a failure to abide by the rules agreed to in a charter agreement.
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