The demurrage and detention fees can drain your valuable time and money, if left unchecked. Taking Control of expensive fees.

In a recent unfolding scandal, the U.S. witnessed yet another wave of unjust detention charges imposed by ocean carriers. You may read here which two ocean carriers paid civil penalties amounting to $2.65 million. 

These charges were levied when appointments were unavailable during the allocated free time to return equipment. As if outdated practices of counting free time from vessel arrival or sneaking in additional days unnoticed were not enough, businesses were left burdened with unnecessary demurrage and detention fees.

But here’s the key: instead of silently accepting these charges without question, it’s time to take control of what importers and exporters pay to the shipping line. The number of demurrage and detention waiver claims, submitted by shippers to ocean carriers has been increasing substantially during the last 6 months.

In this blog, we explore the importance of verifying every bill and advocating for your rights to avoid absorbing unjust detention and demurrage fees. While the Federal Maritime Commission (FMC) ensures compliance in the U.S., it’s essential to understand how you can seek waivers of these fees in other countries.

Let’s jump into the details and empower you to navigate this intricate landscape of shipping charges with confidence with this checklist.

✔     It is essential to personally request a waiver from the ocean carrier instead of relying on local freight forwarders. By taking the initiative yourself, you ensure accountability and prompt action. Local freight forwarders may inadvertently delay your request or lack the motivation to actively reduce your bill. By directly engaging with the ocean carrier, you demonstrate your commitment to minimizing costs and increasing the likelihood of obtaining a favorable outcome. Take control of the waiver process and safeguard your financial interests by avoiding unnecessary delays and maximizing your chances of a successful resolution.

✔     When you anticipate delays in collecting cargo at the port, it is crucial to submit a timely request to extend the allotted free days. Surprisingly, some carriers are willing to show goodwill and accommodate your request. By being proactive and communicating your situation promptly, you not only demonstrate professionalism but also open the door to potential cost savings. These carriers understand that unforeseen circumstances can arise, and by extending the free days, they help alleviate the burden of demurrage and detention charges. Don’t hesitate to reach out and make use of this opportunity to mitigate unnecessary costs and foster positive relationships with the carriers.

✔     It is crucial to meticulously verify every detention and demurrage bill you receive for each container. Taking the time to scrutinize these bills ensures that you only pay for legitimate charges and avoid any potential discrepancies. By conducting a thorough examination, you can confirm that the calculations align with the agreed-upon terms and accurately reflect the actual services provided. This level of scrutiny safeguards your business from overcharges and helps maintain transparency in the billing process. By verifying every bill, you demonstrate diligence and protect your financial interests, allowing for smoother and more cost-effective operations in the long run.

✔     It is essential to verify the actual start of the free time to ensure that it commences on the container discharge day and not at the vessel arrival. This distinction is crucial because starting the free time from the container discharge day accurately reflects the point at which you gain control and responsibility for the container. By confirming this detail, you avoid being charged for time that is beyond your control, such as delays in vessel unloading or wait time at the anchor. Verifying the start of the free time ensures fairness and accuracy in the billing process, allowing you to avoid unnecessary demurrage and detention charges and effectively manage your shipping costs.

✔     Even if you have paid the invoice in full, it is important to remember that you still have the right to request a waiver. Paying the invoice does not necessarily mean that you forfeit your ability to seek a waiver from unjust demurrage and detention charges. By requesting a waiver, you demonstrate your commitment to fair and reasonable practices. It is possible that unforeseen circumstances or valid reasons may have contributed to the delays or incurred charges. Communicating your situation and advocating for a waiver showcases your diligence and proactive approach to resolving the issue. Don’t hesitate to reach out and present your case, as it could potentially lead to a reduction or even complete elimination of the charges, protecting your bottom line and maintaining a positive relationship with the ocean carrier.

✔     When faced with demurrage and detention charges, it is crucial to demonstrate due diligence and make every effort to gate out cargo as soon as possible. To effectively reduce or waive these charges, leverage every argument available in your favor. Highlight factors such as port closures, road congestion leading to the port, adverse weather conditions, or any other valid reasons that may have hindered timely cargo retrieval. By providing concrete evidence and supporting documentation, you strengthen your case for a waiver. Demonstrating your proactive approach and the extenuating circumstances that were beyond your control showcase your commitment to efficient operations and cost management. Utilize every available argument to plead your case, increasing the likelihood of obtaining relief from unjust demurrage and detention fees.

The demurrage and detention dilemma can drain your valuable time and money if left unchecked. However, by taking charge of your shipments, staying proactive, and closely monitoring container movements, you can mitigate these unnecessary costs. Actively adhere to free time limits, optimize your logistics processes, and unlock the power of efficient cargo management. Don’t let demurrage and detention eat into your bottom line any longer. Seize control and start saving today!

Remember, the responsibility to seek waivers of unjust fees lies with you. Stand up against these charges, hold your team accountable, and ensure smooth operations by reclaiming control over your shipping costs. Avoid the demurrage and detention dilemma, and usher in a new era of cost-effective and efficient logistics management.