customs demurrage

In fact, demurrage is a penalty for late return of the container that must be paid by the owner of the goods. In most of the transportation, there is a delay that is uncontrollable. These delays cause costs that will be different in each country and company. In the following article, there are some tips that you may know, to get rid of paying high fees for demurrage; So if you are dealing with business, don't miss this article.

customs demurrage; Payment by the owner of the goods

When you buy goods, you need a container for sea freight by ship. The shipping company that intends to transport your goods places your cargo in the container. This container is available for rent and you must return it as soon as the goods are unloaded.
Transport companies that move various products between countries by ship usually rent the warehouses for a certain period of time to companies or cargo owners. If the owner of the goods does not clear the goods from customs on time, he is obliged to pay a fee for the late delivery of the containers. This amount, which is considered as a fine for the owner of the goods, is called Demurrage.


The concept of free time in demurrage; Duration of delivery of containers

When you use combined, sea or land transportation to send cargo and place your cargo in rental containers, a period of time is determined to deliver these containers to the shipping company. This period of time is called "free time" when entering into a contract with the shipping company to return the container.
The more time you deliver the container to the shipping company, the more fine you have to pay. In fact, free time has a direct effect on demurrage.

origin free time; The duration of the delivery of the empty container until its return

The free time of origin in international sea and land transport refers to the number of days when you pick up an empty container for free from the container yard and until you deliver it.

destination free time; The duration of the delivery of the full container until its return

Destination free time is the number of days that the owner of the goods takes delivery of the full container, unloads the cargo, and returns the empty container to the transport company after transporting the cargo by land or sea. The number of free time days depends on the agreement between the goods owner and the shipping company. The more free time, the less chance of demurrage.

Factors affecting cargo demurrage in the process of export and import

In the import and export of cargo, paying additional fees is a completely unavoidable issue. For example, for the export of Taiwan to Iran, if your desired cargo is delivered late in Taiwan, the person who signed the contract with the transport company must pay the demurrage fee. Several factors play a role in creating demurrage, which we have discussed below:

● Creating a dispute between the owner of the goods and the shipping company
● To the problem of the owner of the goods in terms of clearance
● Increasing the clearance time beyond the time specified in the contract
● Costs of delay in clearance and lack of knowledge of the goods owner
● Non-receipt of goods clearance documents by the goods owner in a certain time
● Excessive stoppage of the carrier due to the inspection of the container by different people
Merchants should minimize additional costs such as demurrage by knowing the terms and laws of international trade and identifying the above factors.

Introducing the best ways to reduce the cost of demurrage

In order to answer the question of what is customs demurrage, you need to know some simple tips on how to prevent its cost from increasing. These points are:
● Coordinate with reliable and skilled carriers to clear your desired goods so that you don't face any problems in unloading.
● Always have an alternative plan for each step of moving and transferring goods.
● Have up-to-date and complete information regarding port rules and goods clearance procedures and take advantage of the help of customs clearance agents.
● According to the conditions of sale and delivery of cargo, choose the appropriate port and route.
● Make sure the health and accuracy of the product details with the agreed items before shipping.
● Check the bill of lading clauses carefully to avoid possible problems.
By considering the above, you can do the customs more easily and deliver the containers to the transport company during free time and even before that. For example, by following the points mentioned above, you can partially avoid paying excessive demurrage fees for the import of chemicals, which generally face many delays.

On what basis is the cost of container demurrage calculated?

All demurrage costs will be specified in the contract between the goods owner and the transport company from the beginning. These costs are calculated on a daily basis. Demurrage costs are calculated based on various factors. In fact, in each shipping company and in each country, different prices are considered for demurrage. Depending on what type of container we have and what size that container is, the demurrage fee will be different.
In addition, the type of load and the amount of load separately affect the cost of demurrage. For example, in order to import tires, due to their high volume and weight, you definitely have to pay more than some smaller materials.


Enter your phone to place an order and receive advice