Three Practical Tips to Avoid Demurrage and Detention Cost

Let’s get straight to the point. Demurrage and detention charges can sneak up on you if you’re not prepared. Here are three simple tips to help you avoid unnecessary costs before signing any shipping agreement.

1. Negotiate Everything Upfront

When discussing terms with your logistics provider, don’t just focus on the free time for holding containers. Negotiate what happens after that time expires. Talk through demurrage and detention tariffs in advance. Being proactive here can save you both money and headaches later on.

2. Know When the Clock Starts Ticking

Free time doesn’t always begin when you think it does. In some cases, it starts when the vessel arrives, while in others, it begins when the container is unloaded. The difference could be a couple of days, and those days add up in costs. Always confirm when your free time starts to avoid unpleasant surprises.

3. Stay Organized with Your Paperwork

Make sure your customs clearance and delivery documents are ready before your shipment arrives. Having everything in order prevents delays that could lead to additional charges. A little preparation goes a long way.

Quick Recap:

• Negotiate all charges upfront—not just free time.

• Confirm your free time start date and adjust plans accordingly.

• Keep your paperwork organized to prevent delays.

Following these three tips will help keep your import costs under control. Want a free benchmark of your free time tariff? Reach out, and stay tuned for more tips!