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Tips to Avoid Extra Costs with Container Freight
What is demurrage?
Demurrage is a fee charged by shipping lines when a container is not collected, unloaded, and returned within the agreed free time. Free days vary by carrier, port, and location.
Why is demurrage charged?
Demurrage encourages containers to be moved and returned on time. This helps shipping lines keep equipment available and reduces delays across the supply chain.
Do demurrage charges vary?
Yes. Rates differ between carriers and ports. Charges often increase the longer a container remains unreturned, making delays increasingly expensive.
What causes demurrage?
Demurrage is usually the result of delays. Common causes include port congestion, customs issues, incomplete paperwork, payment delays, and transport scheduling challenges.
Tips to reduce risk
Plan ahead by sharing shipment details early with all parties. Ensure paperwork is complete and submitted on time. Prepare backup transport options in case of delays. Where possible, negotiate additional free time with the shipping line before arrival.
Can Mainfreight help?
Yes. Our container alert system tracks container availability and return deadlines, sending automated notifications to help manage free time and avoid demurrage costs. Customers can also access our monthly port updates for visibility on congestion, disruptions, and market conditions.
Check out the monthly port updates hereContact us
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