By Benny Lim      Photo：Felix Rottmann

Two years of logistics logjams have burdened ocean shippers with costly increases in demurrage, detention and storage fees. These are extra costs levied on top of often-punishing freight rates, designed to penalize cargo owners for delays that aren’t always their fault. However, steps that can be taken to expedite cargo delivery and avoid or minimize demurrage, detention and storage fees.

The first thing to do is determine much time you get for free. In general, the standard time is four to five days, but it’s important to check this detail before embarking on any cargo voyage. After the time has expired, you’ll be charged a daily demurrage fee until the cargo has been removed from the terminal. 

The price a shipper pays differs depending on the terminal or carrier. Daily demurrage can range from $75 to $150 per container per day, but that’s ordinarily just for the first five days or so. The longer the cargo stays in the terminal beyond the original amount of time allocated, the more the cargo owner needs to pay to have the cargo released.

Following are six ways to avoid demurrage and detention fees:

Do your research and be sure that you’ll be able to comply with the number of free days outlined in the contract. Speak to shippers, freight forwarders and customs brokers to understand how long it normally takes to process a container.

1.Make sure you understand whether there are any special requirements for your cargo. Find a good customs broker to advise you on this.

2.If you know that your cargo requires special permissions (such as for food products or hazardous chemicals), you should negotiate extra free days with the shipping line to create space for any possible delays.

3.Ensure that you work with a shipping line or freight forwarder that’s able to track and trace your container, and offers real-time data on the availability of your cargo. Shipping lines generally don’t accept liability for the non-notification of your cargo’s arrival.

4.Choose to work with a shipping line or freight forwarder that has tools offering real-time predictive data visibility and analytics, to help identify and mitigate issues instead of reacting to disruptions after they happen.

5.Share cargo and shipment delivery instructions in advance with all parties, including the carrier, vendors and third-party providers, for a smooth loading and unloading process, and to avoid any delays.

6.With track-and-trace technologies and real-time predictive data visibility and analytics, stakeholders can proactively identify and mitigate issues. Instead of the need to gather information from various sources, data is automatically collected, processed and turned into usable insights. Instead of reviewing performance after an event, cargo owners are evaluating and analyzing reports generated based on exhaustive data, and in the process being proactive. This greatly mitigates the risk of incurring demurrage and detention fees.

The below is the feedback from China and Southeast Asia branches.

Shenzhen: 

Shipping: Most of the base port and IPI points are still remain the same, and some factories have started to have holidays in recent days

Ports: Yantian and Shekou two major terminals are now relaxing restrictions, from the original ETB-7 to ETB-10 days can pick up the cabinet.

Air Freight: The volume of cargo is not much. At present, the airline company has reduced some flights, and the price has dropped slightly. The operations of factory shipments and cargo stations are normal and have not been affected by the epidemic. The volume of cargo in Africa has always been small, and the flights are relatively small, relatively stable, and the fluctuation is small. The Shenzhen-Hong Kong cross-border cargo transportation policy is further liberalized, the ferry mode is terminated, and the "point-to-point" transportation mode is adopted. Cross-border vehicles need to scan the cross-border security code at the five port connection points to open the entry and exit. Border drivers make appointments by themselves, there is no cross-border security quota limit, and you can apply for as much as you need. However, I learned from the factory that their site yards have not yet been restored, so China-Hong Kong transportation is still unable to be arranged. The policy is still being gradually implemented, and the real full recovery of China-Hong Kong business will at least wait until the end of the Lunar New Year.

Ningbo:

For the Spring Festival holiday, some shipping companies have extended the benefits of free boxes.

At present, the Beilun port area, fleets, warehouses, etc. basically take turns to work to ensure normal operation. However, due to fewer workers, efficiency has decreased.

Due to the impact of the epidemic and the approaching Spring Festival holiday, factory productivity has dropped and there is a shortage of truck drivers.

Shanghai:

Due to the opening of the epidemic control policy, the number of people working in many companies has dropped sharply. When operating, it is necessary to confirm the pick-up time and arrival time in advance. Shipping:

The price of the US line tends to be stable. As the shipping company reduces the number of liner voyages, YML positions need to be booked in advance.

And accompanied by subject to roll.

As the Spring Festival is approaching, manufacturers in Jiangsu, Zhejiang and Shanghai will have early holidays and generally only work until 1/14.

The car situation is starting to get tense

Tianjin:

With the Spring Festival approaching and the impact of the Omicron epidemic, most factories are now on holiday.

Prices for factory-packed trucks are starting to rise. Bulk cargo convoys also have long distances and cannot arrange delivery. The situation of the year-end Spring Festival travel began to appear, the only difference is that the space is sufficient.

Vietnam:

China to resume operation of border gates with Vietnam in Lao Cai.

The Chinese side has announced that it will completely resume the operation of border gates and paths with Vietnam in northern Lao Cai province from January 8.

Specifically, the Chinese side will re-open its border for people, vehicles and goods in the railway border gate on Nanxi River, the road border gate on Red River, Kim Thanh II International Border Gate, and the Lao Cai International Border Gate.

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