What is the demurrage cost?

What is the demurrage cost?

It is a fact that most international ports charge fees for containers that have been waiting longer than the free time provided by the ports, these fees may differ depending on carriers, ports, and contractual agreements, and it has no steady price. When the free time ends, daily costs mostly range from $75 to $300 demurrage cost per container.

What causes demurrage costs?

demurrage cost information
  • Delays from incorrect documentation: Problems with the documents required for receiving the goods from the port will extend the process. An extended process may result in extra demurrage costs.
  • Delays from the late receipts of documents: The consignee may not have the sufficient and correct information. Therefore, the shipment can be held at the port. This situation may result in demurrage costs.
  • Delays from the loss of documents: Delays that may occur due to the loss of documents may prolong the process. This situation may result in demurrage costs. (Like a ‘ bill of lading ’)
  • Delays from; the receivers are unreachable: Demurrage costs can also occur when the buyer delays receiving the delivery or when the time is extended. This situation may occur as a failure to reach the buyer or problems arising from the buyer. Prolongation of the period may cause the port to charge a demurrage cost.
demurrage cost

How can I calculate demurrage costs?

The calculation of the demurrage cost varies according to the factors. Prices may vary depending on the difference between the ports, countries, and carriers. It may be the first step to look at shipping companies’ procedures to find your demurrage fee.

  • Country/Carrier Procedures
  • Container Volume
  • Container Type
How can I avoid demurrage costs?

There are some ways to avoid demurrage costs

  • Make a plan
  • Alternative plans
  • Instructions
  • Be informed

Avoid demurrage cost with ShipsGo

To avoid demurrage costs, we wrote some ways. The most important of these items is to be aware of the status of the container. ShipsGo notifications will help you to avoid overdue charges.

You’re going to receive a container tracking notification mail about your shipment, which summarizes tracking information such as vessel name, loading/discharge /transshipment ports, dates, etc. You can also follow your container shipments on the live map by clicking the ‘Go Live Position’ button in the same e-mail. 

You can reach our blog, where we talk about a lot of information about ShipsGo, by clicking here.

ShipsGo Container Tracking Service