Contanier demurrage - North South Logistics

Contanier demurrage in Dubai

Shipping and freight can be full of surprises and variables in terms of costs for a customer…(((

Demurrage is an example of unwanted surprise what can happen in the case of import or export.

Demurrage is a charge levied by the shipping line to the importer in cases where they have not taken delivery of the full container and move it out of the port/terminal area for unpacking within the allowed free days.

Middle Eastern ports’ demurrage terminology and application are different from other ports of the world. It is important to note that in all Middle East countries port related charges (i.e., storage charges) are directly settled by consignees to the port/terminal operator. Carrier is not involved in the computation and collection of port storage charges.

So if you did not collect a container from the port within allowed free days then you will pay demurrage to shipping ling + storage to port operator.

As example — average demurrage and storage import tariffs in UAE for general purpose containers:

 Costs

Period,
in days
Demurrage charges to shipping lines,
AED per day
Storage charges to port operator,
AED per day
20'40'20'40'
5 free days free days free days free days
6-10 65 130
11-15 130 260 82 164
16-20 153 306
21... 300 600

For example, your client declined receipt of cargo when containers are on the way or arrived in UAE port already. Unfortunately it can happen. You do not know how many days will be required to settle the problem. In our experience if you see that your containers will be not moved during 2 weeks starting the day of arrival to sea port it will be cheaper to collect your containers from port, unload in our warehouse, return back to shipping line and continue store your cargo in our warehouse. If you store your containers in sea port for 3 weeks your total expenses will be already 50% higher than if they are unloaded in our warehouse. Moreover if you store your cargo in our warehouse you are flexible in selling your cargo by parts or by containers. If you wish to collect even one container from a few stored in sea port you will have to pay demurrage and storage charges for all containers first.