Exporters Face Rising Costs From Demurrage and Detention Fees

This article focuses on common issues in export consolidation, such as container free time, demurrage, inspection and re-allocation, providing practical answers and operational advice to help foreign traders avoid risks and ensure smooth shipment of goods. It covers the distinction between container free time and demurrage, strategies for handling inspection and re-allocation, and precautions for cargo entry and consolidation. The aim is to provide a concise guide to navigate the complexities of export consolidation.
Exporters Face Rising Costs From Demurrage and Detention Fees

Imagine cargo ready to set sail, only to be stranded at port due to unexpected complications, with delays causing significant financial losses. The export shipping process often presents unpredictable challenges in container periods, storage, customs inspections, and rebooking. This article provides clear solutions and practical operational guidance to help businesses mitigate risks and ensure smooth cargo shipments.

Container Periods and Storage Considerations

Shipping containers remain the property of vessel operators, who determine the usage period commonly referred to as "free time." Port authorities at destination terminals establish "free storage periods," typically offering about three days of complimentary storage. Therefore, storage fee assessments fall outside vessel operators' direct control.

Certain Southeast Asian ports may accommodate requests for extended free storage and usage periods, though most global ports only permit free time extensions for container usage.

Managing Customs Inspections and Rebooking

When customs examinations necessitate shipment rebooking, exporters must evaluate whether container loading schedules allow sufficient response time. While Yangshan Port generally requires pre-recorded information for cargo retrieval, other ports rarely impose this requirement.

Key operational guidelines include:

  • Maintain consistency between modified data and customs declaration information
  • Port terminal pre-recorded data typically permits modification before vessel departure
  • For container seal replacements after inspections, coordinate directly with documentation departments
  • Without customs examinations, follow individual carrier protocols which may require manifest cancellation and resubmission

Port Entry and Consolidated Shipments

Exporters should maintain parity between container release and return quantities. For pre-departure port entry, note that cargo exceeding 300kg may face port access restrictions, with transport providers typically notifying clients about additional fees.

Post-inspection modifications generally encounter minimal customs scrutiny regarding container seals, though some officials may conduct detailed verification. For consolidated shipments, operators can:

  • Request a subsidiary customs declaration number
  • Input both sets of customs data into the port pre-recording system
  • Submit consolidation applications