Shipping Industry Warns of Hidden Container Fees

In international shipping, various surcharges related to containers, such as container detention charges, drop-off charges, and demurrage, are significant. This paper provides a detailed analysis of the reasons for these charges, their scope of application, and who bears the responsibility. It also offers suggestions for pre-entry and drop-off options, aiming to help shippers and freight forwarders plan ahead, avoid additional costs, and ensure smooth cargo transportation. Understanding these fees is crucial for efficient and cost-effective international shipping operations.
Shipping Industry Warns of Hidden Container Fees

Imagine your goods are loaded onto a vessel, ready to cross oceans, when suddenly you receive an unexpected list of additional charges with confusing descriptions. In international shipping, beyond basic ocean freight rates, various container-related fees often go unnoticed yet can account for a significant portion of total costs. How well do you understand these "container affairs"?

Pre-Pull Fee: Getting Ahead in Special Circumstances

The pre-pull fee refers to charges incurred when collecting a container before its scheduled pick-up date. This typically occurs in special situations, such as shipments to the United States where containers must be collected early to obtain box numbers before the AMS (Anti-Terrorism Manifest System) filing deadline. Even if loading hasn't commenced, empty containers must be retrieved and temporarily stored at the yard.

Pre-Pull Fee ≠ Drop-Off Fee: A Crucial Distinction

While both pre-pull and drop-off fees relate to container storage, they differ significantly in purpose, application, and responsibility:

  • Scope: Pre-pull primarily applies to US-bound shipments for AMS compliance, while drop-off fees occur throughout export processes.
  • Purpose: Pre-pull addresses AMS box number requirements before loading; drop-off occurs when ports aren't ready to receive containers, requiring temporary storage.
  • Responsibility: Clients typically bear pre-pull fees, while drop-off fees depend on fault - borne by trucking companies for operational issues or charged to clients for client-caused delays.

Drop-Off Fee: Temporary Parking Before Port Entry

This charge applies when containers cannot immediately enter port areas due to closed receiving windows or other issues, requiring temporary unloading elsewhere until port access becomes available—similar to vehicles needing short-term parking.

Demurrage: Daily Charges for Overstays

To maintain container circulation and prevent port congestion, shipping lines establish free usage periods—typically 7 days for exports and 10 days for imports. Beyond these limits, daily demurrage (container detention) fees apply. Importers must complete customs clearance promptly and return empties to designated locations. Note: Special containers have shorter grace periods, while shipper-owned containers (SOC) avoid demurrage entirely.

Pre-Gate Fee: Early Port Access Pass

This charge applies when requesting early port entry before a vessel's official opening window—essentially purchasing priority access to avoid loading delays.

Pre-Gate vs Drop-Off: Cost Considerations

When needing early operations before official port opening, compare options:

  • Drop-off fees vary by carrier and surge during peak periods
  • Pre-gate fees remain relatively stable and often prove cheaper
  • Pre-gating enhances reliability by preventing next-day disruptions

Note: Not all ports offer pre-gate services—verify availability beforehand.

Restowage Fee: Container Relocation Charges

When vessels change mid-route, containers require repositioning—a complex operation that incurs restowage fees. Vessel switches occur for various reasons: regional tonnage requirements, route incompatibilities, or economic considerations on specific legs.

Additional Container-Related Charges

Other potential fees include:

  • Pick-up Fee: Collecting containers from yards for customs inspection
  • Loading Fee: Post-clearance container mounting on trucks
  • Empty Return Fee: Returning unused containers (typically 80% of haulage cost)
  • Devanned Fee: Customs inspection requiring container unpacking
  • Late Gate Fee: Charges for containers arriving after cutoff times but allowed loading

Proactive Planning: Avoiding Costly Surprises

International shipping involves numerous potential charges. Understanding these fees enables shippers and forwarders to optimize operations, prevent unnecessary expenses, and ensure smooth cargo movement. Comprehensive knowledge of container-related costs provides competitive advantage in global trade environments.