What are the reasons for demurrage?

Here are some of the major causes for demurrage and detention..

• Delays due to incorrect documentation.
• Delays due to late receipt of documents.
• Delays due to loss of documents.
• Delays due to customs clearance or cargo inspection.
• Delays due to release of cargo at destination.
• Delays due to receiver being unreachable.

Who is responsible for demurrage?

shipper
The shipper is generally responsible for demurrage charges, but the consignee also may be legally obligated to pay, depending upon who was at fault for the delay and which party was contractually responsible to pay freight or other charges.

What is demurrage example?

In the context of currencies and commodities, demurrage refers to the various costs of owning the currency or commodity in question. For example, currency holders may need to pay account fees, whereas holders of commodities such as gold and silver may need to pay insurance and storage fees as well.

What are the demurrage charges?

Demurrage refers to the charge that the merchant pays for the use of the container within the terminal beyond the free time period. Containers are either owned or are leased by shipping lines who provide them to their customers (shippers or merchants) for the safe and fast door to door transport of their goods.

How do I stop demurrage?

Tips to Avoid or Reduce Demurrage Charges

1. Pre-clear your cargo and issue delivery instructions to your inland carrier in advance.
2. Have a trucker “back-up” plan.
3. Request extended free time.

How do you stop demurrage?

Top 5 Tips to Reduce Demurrage, Detention and Storage Charges

1. Make Sure Your Cargo is Ready on Time to Reduce Detention Charges.
2. Be Smart About Customs Clearance to Reduce Demurrage and Storage Charges.
3. Use the Expertise of a Freight Forwarder.
4. Demand Demurrage, Detention and Storage Information in Your Quotation.

What is a demurrage negotiator?

The Demurrage Negotiator is responsible for managing a portfolio of demurrage claims on behalf of one or more trading benches. This involves analysing, negotiation, invoicing, and payment handling of demurrage claims resulting from contracts with owners, oil majors and trading companies.

What is demurrage claim?

Demurrage is a claim for liquidated damages, accruing at a contractually specified daily rate from the time that laytime expires until the vessel’s operations in port are completed.

How much is demurrage per day?

The cost of demurrage charges vary depending on carriers, terminals, and contractual agreements. However, they tend to be anywhere between $75 to $300 per container/ per day. After several days, the charges can grow to more significant amounts.

Do I have to pay demurrage?

In most cases, the consignee, or receiving party, must pay a demurrage fee when goods sit too long in the terminal. In some cases, the consignee may also face a fee from a carrier for taking too long. After all, someone’s got to pay for that work. Each bill of lading should clearly explain demurrage charges.

Is demurrage a fine?

What is demurrage? Demurrage is a fine or charge that is levied by a courier or freight provider if they do not take their goods away from a port or terminal within a predefined amount of time. Often importers may store goods or containers for a number of ‘free’ days, after which charges are applied.

How can demurrage be reduced?

Gain transparency into your supply chain to reduce demurrage cost

1. Increase cargo security.
2. Monitor cargo condition and quality.
3. Optimize the logistics and supply chain.
4. Assess the performance of LSPs.
5. Reduce inventory.

What is a demurrage and why is it important?

The demurrage sometimes causes a loss to the seller as it increases the cost of the total freight. The demurrage is a fee charged by maritime carriers, trucking companies, and railroads when a container from the port is not removed by the last free day, as stipulated in the contract with the shipper.

What are the common causes of demurrage and detention?

A very common problem and one of the main causes for demurrage and detention.. There are several cases where the documents may go missing during transit by courier.. Most problematic could be when an original bill of lading is lost.. There are several steps to be taken when an original bill of lading is lost ..

How do I avoid demurrage charges?

Menacing as it is, here are some tips to avoid demurrage charges: Talk to your cargo agent and know in advance the number of free days given. Make sure to always send your shipment earlier. If your shipment comes in volumes, you can request additional free time from your freight forwarder or carrier.

What is demurrage fee in shipping?

Demurrage fee is levied by shipping lines for containerized shipments only, however, this fee is charged when the containers are still full and has not been cleared up by the consignee within the seven (7) days free time & extendable as per approval of the shipping line. Menacing as it is, here are some tips to avoid demurrage charges: