What causes demurrage costs?

• 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.

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.

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Terminal Handling Charges (THC), Cargo Dues (wharfage), Port Dues, and Marine Services Dues. Understanding these costs will allow users of container ports to make much more detailed plans in terms of logistics planning. In this essay, we will try to understand the components of container port costs.

Terminal Handling Charges (THC) are related to the loading and unloading operations (handling and maintenance) of the containers. THC varies from port to port of each country.  The shippers (exporters) at the port of loading are responsible for paying the THC; on the other hand, the consignees (importers) are responsible for paying the THC at the port of destination to the terminal operators. Shipping lines collect those charges from both exporters and importers.

Cargo Dues, also known as Wharfage are charged by the Port Authority to the shipping lines, exporters and importers. They are directly related to the usage of port infrastructure such as railway lines, bulk services, quays, etc. They are fixed costs in many container ports. They are considered as the official tariff.

Port Dues are calculated considering the gross registered tonnage of a ship based on its tonnage certificate. This due is charged by the terminal operator. The shipping line pays this cost. Port due is called harbour due in some ports.

Marine Service Costs are paid for the mandatory services such as pilotage, berthing and tug assistance. It is based on the size of the ship. In some container ports, marine service costs are classified under the port dues. The shipping line pays this cost.

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