How to Optimize Drayage and Reduce Demurrage Charges at the Port

Optimizing drayage and reducing demurrage charges at the port can help your organization save money and improve time-efficiency. Demurrage is the charge that is payable to the owner of a chartered ship in respect of failure to load or discharge the ship within the time that was allotted. Drayage involves the transportation of goods a short distance, i.e. moving break bulk cargo from a port to a warehouse. Generally speaking, the extra costs of the drayage or demurrage incur because of improper planning, unforeseen circumstances, or a misinterpretation in communication at the port.

Timely Release of Cargo

If you have a complicated project, there is a chance that there may be demurrage charges at the port due to the extra time needed to load. Time management and planning ahead to ensure the port officials have additional time to load large cargo volumes can drastically reduce the drayage or demurrage charges.

Saving Demurrage and Detention Charges

In most cases, demurrage and detention are difficult to control, but there are a variety of ways to minimize the risk of additional charges. Demurrage and detention charges are applied for storage of containers while in the steamship lines terminal, or when the carrier’s container outside the port is beyond the time that was allowed. Trying to negotiate with the quote rather than accepting it and providing shippers with greater flexibility in scheduling can show that you have arranged time in advance to understand the necessary qualifications to save money on demurrage and detention charges.   

Using Shipper-Owned Containers

Using shipper-owned containers (SOC’s) could be a cost-effective option to ship your cargo. SOC’s are freight containers owned by the shipper. If your organization is working on a long-term project, it may actually be more cost effective to buy a container yourself, rather than pay the detention and demurrage fees. As an added perk, the container could then be repurposed after unpacking into a site office.

If you need additional assistance navigating port charges or need experience transportation experts to assist in your next ro-ro, project cargo, high and heavy, or break bulk project, get in touch with RTM Lines at 800.847.7447

 

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