5 Tips To Reduce Container Detention And Demurrage Charges

Greetings today from Portland, OR, where we are visiting customers and the 4 marine terminals.

As many of you may be aware, congestion at ports continues to be a pressing issue for the industry. However, there are steps that can be taken to help mitigate the impact of this issue. Specifically, we want to highlight how detention and demurrage fees can be better controlled and even avoided through the use of the right technology.

Here are five tips to help you manage detention and demurrage fees:

1. Negotiate your terms: It's currently contract season, so this is a prime opportunity to negotiate your terms. Detention and demurrage charges can vary depending on the location and ocean line, and the number of free days can be negotiated. It's important to note that negotiating power depends on the volume you are moving as a shipper.
2. Leverage transparency: Knowing more about what drives the costs associated with detention and demurrage will help stakeholders make better decisions and provide the leverage needed to negotiate per diems.
3. Plan and execute efficiently: Dispatch containers in advance, as early as possible. Any extra time that can be built into the plan will help mitigate unforeseen risks such as last-minute terminal changes, closed areas, work stoppages, and congestion at ports.
4. Handle customs like a pro: Ensure that all paperwork is ready, complete, and accurate. Track if your container stays for too long on hold at customs, and prioritize faster customs clearances.
5. Get the right technology: Having quality, standardized data is key to being able to provide ultra-accurate ETAs and identify potential detention and demurrage fees. The transparency of real-time visibility helps align dray schedules with a vessel's arrival in port, preventing full containers from sitting idle, and empty containers from being returned to the port. BlueCargo is the perfect technology to help you avoid and mitigate those fees.

We hope that these tips will be helpful in navigating the port congestion and detention & demurrage fees. As always, we welcome your feedback and are happy to answer any questions you may have.

The BlueCargo Team - soon at TPM23, Long Beach, CA!