{"id":6461,"date":"2022-04-08T20:46:18","date_gmt":"2022-04-08T15:16:18","guid":{"rendered":"https:\/\/www.gocomet.com\/blog\/?p=6461"},"modified":"2025-02-13T12:27:32","modified_gmt":"2025-02-13T06:57:32","slug":"how-to-avoid-demurrage-and-detention-charges","status":"publish","type":"post","link":"https:\/\/www.gocomet.com\/blog\/how-to-avoid-demurrage-and-detention-charges\/","title":{"rendered":"3 Proven Ways To Avoid Demurrage And Detention Charges - GoComet"},"content":{"rendered":"\n<p>Did you know that demurrage and detention charges can accrue up to\u00a020 times the container\u2019s value?<strong>\u00a0<\/strong>With international shipping rates already soaring, any extra expenses incurred on top of the freight rate will take a bite of your margin.<\/p>\n\n\n\n<p>Today, the detention and demurrage charges easily exceed\u00a0<strong>$100 per container per day<\/strong>. While D&D can be an incentive for the shipper to return an empty container to have a fast turnaround, no shipper likes an unexpected additional fee at the last moment!\u00a0<\/p>\n\n\n\n<p><strong>What leads to demurrage and detention charges?<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Supply chain disruptions \u2013 including bad weather, labour shortage, shortage of trucks, geopolitical tensions, and <a href=\"https:\/\/www.gocomet.com\/real-time-port-congestion\" target=\"_blank\" rel=\"noreferrer noopener\">port congestion,<\/a> to name a few.<\/li>\n\n\n\n<li>Incomplete shipping documentation<\/li>\n\n\n\n<li>Containers held up by customs for an inspectionde<\/li>\n\n\n\n<li>Payment related issues due to which the carriers fail to release cargo.\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Three proven ways to avoid\u00a0demurrage and detention charges:<\/strong><\/h2>\n\n\n\n<p>While D&D charges cannot be entirely eliminated given the volatility of supply chains in the face of unforeseen disruptions, they sure can be minimised. Let\u2019s see the three ways using which proactive supply chain professionals have been able to avoid unnecessary D&D charges.<\/p>\n\n\n\n<p><strong>1. Planning and preparing in advance:<\/strong><\/p>\n\n\n\n<p>Planning and streamlining your shipment process in advance can go a long way in preventing you from incurring D&D costs.\u00a0<\/p>\n\n\n\n<p>You must proactively:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Dispatch your cargo in advance with a bit of buffer time.\u00a0<\/li>\n\n\n\n<li>Have proper documentation readily accessible, and pay duties in advance\u2014specific to the geography or the materials in the container. Incomplete or not submitting the documents on time will result in unnecessary demurrage and detention costs.<\/li>\n\n\n\n<li>Secure customs clearance before the shipment\u2019s arrival.\u00a0<\/li>\n\n\n\n<li>Share delivery instructions with all stakeholders in advance to save valuable time. For instance, communicating with the trucking company well in advance could save time, especially in busy ports.\u00a0<\/li>\n<\/ul>\n\n\n\n<p><strong>2. Tracking containers using visibility platforms:<\/strong><\/p>\n\n\n\n<p>Use a real-time visibility solution to easily track your container throughout the transit to keep demurrage and detention fees to a minimum. With an intuitive tracking platform, you will be able to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Predict delays at ports and proactively explore alternative lanes to keep your cargo moving.<\/li>\n\n\n\n<li>Obtain real-time alerts about the shipments so that you will know which shipments are likely to incur D&D charges. This can help you take action before it is too late.\u00a0<\/li>\n<\/ul>\n\n\n\n<p><strong><em>Also  Read: <a href=\"https:\/\/www.gocomet.com\/blog\/what-is-detention\/\">What Are Detention Fees in Shipping<\/a>?<\/em><\/strong><\/p>\n\n\n\n<p><strong>3. Use the data:<\/strong><\/p>\n\n\n\n<p>There is a vast amount of data flowing through today\u2019s global supply chain. With such an enormous amount of data at your disposal, you can make informed business decisions that could prevent any unnecessary expenses, including detention and demurrage.\u00a0<\/p>\n\n\n\n<p>Using the data from a <a href=\"https:\/\/www.gocomet.com\/online-container-tracking\"><strong>container tracking<\/strong><\/a> platform, you can:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"811\" height=\"468\" src=\"https:\/\/www.gocomet.com\/blog\/wp-content\/uploads\/2022\/09\/image-4.webp\" alt=\"\" class=\"wp-image-14626\" title=\"\" srcset=\"https:\/\/www.gocomet.com\/blog\/wp-content\/uploads\/2022\/09\/image-4.webp 811w, https:\/\/www.gocomet.com\/blog\/wp-content\/uploads\/2022\/09\/image-4-300x173.webp 300w, https:\/\/www.gocomet.com\/blog\/wp-content\/uploads\/2022\/09\/image-4-768x443.webp 768w\" sizes=\"auto, (max-width: 811px) 100vw, 811px\" \/><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Understand the performance of your carriers and identify the best performing carriers lane-wise.<\/li>\n\n\n\n<li>Identify possible port congestion scenarios well in advance.\u00a0<\/li>\n\n\n\n<li>Identify risky carriers or risky ports which would delay your shipments.\u00a0<\/li>\n<\/ul>\n\n\n\n<p><strong><em>Also Read: <a href=\"https:\/\/www.gocomet.com\/what-is-demurrage\">What is Demurrage Fee<\/a>?<\/em><\/strong><\/p>\n\n\n\n<p><strong>With our enhanced D&D tracker and container tracking, shippers can:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Prioritise containers that are at the risk of incurring demurrage and detention fees.\u00a0<\/li>\n\n\n\n<li>Receive real-time notifications and alerts for dwell time<\/li>\n\n\n\n<li>View and compare the lane-wise performance of various carriers to make an informed decision for the future.<\/li>\n\n\n\n<li>Maintain and manage essential shipping documents on a cloud-based repository, and effortlessly collaborate with other stakeholders with the help of customisable workflows. This timely communication and digital documentation will minimise unnecessary D&D expenses to a larger extent.<\/li>\n\n\n\n<li>Obtain detailed shipment reports, aiding data-driven decision-making<\/li>\n<\/ul>\n\n\n\n<pre class=\"wp-block-preformatted\">See how GoComet's real-time container tracking can help <strong>reduce your demurrage and detention charges -<\/strong> <a href=\"https:\/\/www.gocomet.com\/contact-us\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Tell me more.<\/strong><\/a><\/pre>\n\n\n\n<p>You may also be interested in reading our recent blog \u2014 <a href=\"https:\/\/www.gocomet.com\/blog\/russia-ukraine-war-a-shipping-industry-perspective\/\" target=\"_blank\" rel=\"noreferrer noopener\">Russia Ukraine war: a shipping industry perspective<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Did you know that demurrage and detention charges can accrue up to&nbsp;20 times the container&#8217;s value?&nbsp;With international shipping rates already soaring, any extra expenses incurred on top of the freight rate will take a bite of your margin. Today, the detention and demurrage charges easily exceed&nbsp;$100 per container per day. While D&amp;D can be an&#8230;<\/p>\n","protected":false},"author":14,"featured_media":6485,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[829],"tags":[156,405,366,247,345,112,331,269],"class_list":["post-6461","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-detention-and-demurrage","tag-container-tracking","tag-demurrage-and-detention","tag-ocean-freight-rates","tag-port-congestion","tag-real-time-visibility","tag-shipment-tracking","tag-shipment-tracking-software","tag-supply-chain-visibility"],"tag_names":["container tracking","demurrage and detention","ocean freight rates","Port Congestion","real time visibility","shipment tracking","shipment tracking software","supply chain visibility"],"category_names":[],"_links":{"self":[{"href":"https:\/\/www.gocomet.com\/blog\/wp-json\/wp\/v2\/posts\/6461","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gocomet.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gocomet.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gocomet.com\/blog\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gocomet.com\/blog\/wp-json\/wp\/v2\/comments?post=6461"}],"version-history":[{"count":4,"href":"https:\/\/www.gocomet.com\/blog\/wp-json\/wp\/v2\/posts\/6461\/revisions"}],"predecessor-version":[{"id":28807,"href":"https:\/\/www.gocomet.com\/blog\/wp-json\/wp\/v2\/posts\/6461\/revisions\/28807"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gocomet.com\/blog\/wp-json\/wp\/v2\/media\/6485"}],"wp:attachment":[{"href":"https:\/\/www.gocomet.com\/blog\/wp-json\/wp\/v2\/media?parent=6461"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gocomet.com\/blog\/wp-json\/wp\/v2\/categories?post=6461"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gocomet.com\/blog\/wp-json\/wp\/v2\/tags?post=6461"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}