Container detention and demurrage fees are a frustrating cost for shippers. Over the past few years, average fees reached record levels, prompting more interest in how technology can be used to help reduce these costs. Real-time transportation visibility now offers shippers more consistent, accurate and reliable berth ETAs for containers, unlocking significant benefits.
What is demurrage?
Demurrage is a fee that shippers and Beneficial Cargo Owners (BCOs) are charged when a container has been sitting at the terminal beyond the cost-free time period. For conventional shipping, the cost-free window is usually around 3-5 days after the container has been discharged from the vessel. After that, shippers are charged for each day until the container is picked up and gated from the terminal.
Boosting profitability by reducing extra freight costs
Demurrage is a common frustration for many of our customers, and fees can quickly spiral out of control, especially at some of the world’s busiest ports (see graph below). Reducing these extra costs requires new levels of ETA accuracy, to allow better planning for container pick-ups, minimizing demurrage.