Top 5 Reasons to Challenge, Reduce, or Avoid Demurrage & Detention Charges 🚢

When it comes to importing goods, demurrage and detention fees can become a major cost burden if left unchecked. These fees can sneak up on you if your shipments experience delays or you face other logistical challenges. However, in many cases, these fees can be challenged, reduced, or even avoided. Here’s a quick guide to help you identify when you should dispute these charges and take back control of your costs.

1. Bundled Main Carriage with Last-Mile Services  🚛

If your forwarder or carrier bundles main carriage (the long-haul portion of the journey) with last-mile services, you may end up paying more than you should. Often, the terms for these bundled services aren’t fully transparent, leaving you with higher fees, especially for the final leg of delivery.

Tip: Always review service agreements and request clear breakdowns for these charges. If you see bundling without clear itemization, it’s worth disputing.

2. No Clear Demurrage & Detention Tariff Provided 🔍

If your forwarder or carrier doesn’t provide a clear demurrage and detention tariff or you can’t find it online, that’s a red flag. You should never be left guessing about potential fees, and a lack of transparency often means the charges could be inflated.

Tip: Ask for these tariffs upfront. If they’re not clear or missing, challenge the fees.

3. No Information Provided 3 Days Before Arrival 📅

If you weren’t notified at least 3 days before arrival that your containers were inbound, you may be facing unnecessary delays. Lack of timely communication can disrupt your planning, leading to unexpected fees that should have been avoidable.

Tip: Hold your carrier accountable if their failure to communicate on time led to additional fees, and dispute them.

4. Delays Due to Port Strikes or External Events 🚢

Sometimes, your shipment can be delayed due to unforeseen events like port strikes. When these events are beyond your control, you shouldn’t have to bear the burden of demurrage and detention fees.

Tip: If strikes or similar events stopped your shipments, you’re in a strong position to negotiate or challenge those charges.

5. Offered to Buy the Container 🛒

If you anticipate long demurrage or detention periods, one way to avoid skyrocketing fees is to offer to buy the container. This can be a smart way to save money, especially in cases where extended use is likely.

Tip: Proactively negotiate with your carrier to buy the container outright in cases of prolonged delays.

Bonus: Most Demurrage and Detention Invoices Are Wrong ❌

Did you know that most demurrage and detention invoices contain errors? Common mistakes include incorrect dates for free time or wrong charge levels applied. This means you may be paying more than necessary, even when you’ve done nothing wrong.

Tip: Always review your invoices carefully and don’t hesitate to reject them if they contain mistakes.

Bonus 2: Forwarder Tariffs Often Include Significant Margins 💰

Many forwarders include significant margins on top of carrier tariffs. This means there’s often room for negotiation to reduce your costs. Don’t accept these tariffs as they are—there’s almost always flexibility.

Tip: Challenge forwarder tariffs and negotiate for better terms to avoid paying unnecessary premiums.

Conclusion: Take Control of Your Fees

Demurrage and detention fees don’t have to be a frustrating or unavoidable cost. By staying vigilant and challenging fees when necessary, you can significantly reduce your expenses. Next time you face these charges, pay close attention—or better yet, send your invoices to us at DemDet, and we’ll review them for you.

Take charge of your logistics costs, and stop overpaying for what you can avoid!