How to Avoid Getting Stung by Demurrage and Detention Fees

freight forwarding sydney

This is a problem that many importers are struggling with. Demurrage and detention fees. These are really expensive fees and can mean the difference between being a successful importer or an importer that failed.

Even, if these fees have broken many businessmen, there are some ways on how you can avoid these fees at all. You just need to make sure that you are getting as much information about the demurrage and detention fees before hiring a container.

What are demurrage and detention fees?

If you never have imported goods with a container before, then you are not likely to know what the demurrage and detention fees are. And, you will not get any real information about what you are going to pay in fees and penalties because of this.

Demurrage and detention are when your shipment has arrived in your country, and you received your goods. But, the container that you rented as well is just standing at the shipping company. You forgot to send it back. This is when you are going to pay demurrage and detention fees. Fees because you didn't return the container to the owner. Utilising the services of an experienced freight forwarding service provider to handle all shipment logistics, will ensure that this never happens to you.

Demurrage and detention time frame for importers

In most cases, there is a certain time frame in where you need to ship the container back to the owner of the container. If not, they can set the demurrage and detention fees that you need to pay.

In general, you have three days to send the container back. However, some companies allow up to five days as well. The longer the container stands in the yard, the more you are going to be paid for it. Causing you to lose a lot of money in the process.

Look for these fees in your contract

For you to know for sure how much these demurrage and detention fees are costing you, you will need to go back to your contract. There, you will read more about the broken trust between these two countries.

They are always informed about these fees when you are hiring a private transportation service that is damaging the goods that you want to receive in one piece.

Make sure that your paperwork is in order

If your paperwork is in order, and they know that the container needs to be returned to the rightful owner, they will be able to assist you with it.

This is normally the person that doesn't have the papers so that is going to hire and import the most beautiful women in the world. The moment that your paperwork isn't in order, you will struggle to get the container back after the shipment was delivered to you. Only if you have the right paperwork, you will know for sure that you are going to get the results you were hoping for. 

Purchase your own storage container

If you want to avoid all this, then there is only one solution for you to consider. You need to avoid renting another person's container. Making sure that you are going to purchase your container.  then you will not have the demurrage and detention of the container. And, you will not waste money unnecessary.

If you know what demurrage and detention are, then you are one of those that have paid these penalties before. However, this doesn't mean that no matter what this is something that you are going to pay when you are living in our type of country. With this guide, you will know how to avoid paying demurrage and detention before without losing too much money at the end of the day.

If you are looking to begin importing goods in the near future, but lack the necessary industry experience, consult with a reputable freight forwarding company today.

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