When importing goods, unforeseen costs often arise, which are actually avoidable. One of the most common unforeseen costs is ‘demurrage’. What is it, why does it occur, and how can it be prevented? Find out in the article below.
From the moment a full container arrives at the destination port, there are typically three to five days available to pick up the container for onward transportation. However, pay close attention; the number of days is the first thing to watch carefully. One shipping line may use a term in working days, while another may use calendar days. This can quickly become tight, especially if unexpected situations arise resulting in demurrage. Possible causes of demurrage include:
- Delayed documentation: Customs must receive the required customs documents in a timely manner for goods approval.
- Insufficient customs documents: Sometimes, documents may be incomplete or incorrect, causing delays.
- Physical customs inspections: The container may be selected for a scan. Here, you can learn what this entails and get answers to frequently asked questions.
While not all demurrage can always be avoided, there are several options that can help minimize the chance of demurrage:
- Pre-checks and permits: Check if there are specific requirements for importing your type of goods. You can always ask your customs advisor for advice.
- Efficient communication: Communicate in advance with suppliers about the required documents and request them promptly. Learn about the key import documents here.
- Bill of Lading: Ensure you always receive the B/L on time.
- Strategic choice of arrival port: Determine which port is most suitable as the arrival port for your goods based on the conditions and delivery addresses. VSL can also assist you in this regard.
If you have any questions or would like to learn more, please contact us.
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