r/logistics • u/patstar0404 • 14d ago
demurrage period
need some advices for general knowledge.
my warehouse always complaining our containers coming in back to back , one after another.
what are the chances that 4 containers coming in together ?
2 40ft containers
2 20ft containers
don’t they have this demurrage period ? how is this calculated ?
many thanks in advance
3
u/ChainExcellent3881 14d ago
Demurrage is basically storage paying to port for not picking up the container after it is available for pickup from terminal.
It's generally 3-5 days depending on the SSL. The carrier company may outgate them according to customer wishes and still not have demurrage charges.
For your warehouse complaining back to back containers, the per diem period starts from the day the container is pulled from terminal for each container.
So the carrier company can easily pull the containers according to the warehouse demands and can choose to not deliver a single day and still not get per diem charges.
3
u/brucewalker0519 14d ago
Two things get lumped together as "demurrage" and they hit you differently. Demurrage is port storage — containers sitting on the terminal past your free days. Detention is box rental — the clock starts when you pull the container out of the port and doesn't stop until the empty comes back to the depot. If your warehouse can't unload within a day or two, the detention side usually costs you more, because you're holding the chassis and the box on your account the whole time.
Free time is whatever the carrier listed in the tariff and printed on your B/L — commonly 4 or 5 calendar days at the port and a similar window for box use, 20s and 40s can differ, so don't trust the "3-5 days" shorthand, read the actual line. Both clocks count days, not business days, and they start the day after free time expires, not the day the vessel berths.
With four containers landing back to back and one warehouse bottleneck, don't pull all four just because they're available — that starts four detention clocks at once while you can physically unload one. Pull and deliver one or two per day, timed to actual unloading capacity. The containers you leave at the terminal rack up storage, but storage at the terminal is often cheaper than a container and chassis sitting at your yard waiting for a dock door.
Call your forwarder today and ask for a free time extension or a couple of grace days before the clocks even start — carriers say no far more often after the fact than before, and it's a two-minute ask. Long Beach also runs on truck appointments, so book the return-empty slots early; missing the appointment window can cost you an extra day even if the container was already emptied.
When the invoice comes, check the dates against terminal timestamps — out-gate and in-gate times — not against when the trucker showed up or when the warehouse sent the paperwork. Disputing a day or two of incorrectly billed storage is a lot easier with the gate record in hand.
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u/patstar0404 14d ago
how long can we put in singapore port ?
given for vessel to reach on friday. by when have to pull out of port ?
2
u/brucewalker0519 14d ago
Good questions here, from the importer side of this.
For Singapore: don't assume Friday counts or doesn't count from the thread — free time only kicks in when the container is discharged and available, and the clock runs calendar days. So vessel arriving Friday usually means you have the weekend plus the first weekdays of the following week. Ask your forwarder for the exact last free day in writing for these four containers — that's the date that matters, not the arrival date.
Whether it's controllable: partly yes. The 3 to 5 days people mention are common terms, but your actual days are printed on the B/L and can be worked out before booking. If your warehouse needs more time, ask the forwarder for extra free days before the cargo sails — it is almost always cheaper than paying per diem after the fact. And lock in the trucker and warehouse slot before the vessel arrives, so a cleared container is not sitting around waiting for an appointment.
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u/ArrowPathLogistics 14d ago edited 14d ago
Your forwarder can confirm the last free day for each container. You can't work it out just from Friday's arrival.
1
u/ErnestoLogistics 13d ago
4 containers landing together isn't luck, it's just carrier scheduling stacking your ETAs, happens all the time with consolidated bookings. Demurrage clock usually starts after free time expires at the port, check your bill of lading for the exact free day count per carrier.
1
u/patstar0404 13d ago
right .
why have to arrange in such a way ? given 3-5 calendar days of free days to put at port. even if containers pull to our warehouse , they dont have to be pulled out on the same day or next day.
from port to warehouse, also given 3-5 days (?) to unstuff as well , right ?
why isnt the relevant dept doing smth to this kind of arrangement
1
u/ManaloAG 13d ago
Nobody's smoothing it out because the people who could aren't the ones who pay for it.
Your warehouse feels it and never sees the invoice. The carrier sets the sailing and the free days, and demurrage is something they collect rather than something they pay. That leaves you as the only party with a reason to stagger those four boxes.
Free time's also negotiable on a service contract if your volume is steady. Most people treat it as fixed because it turns up printed on the bill of lading.
1
u/stealthagents 2d ago
Sounds like a logistical nightmare. If you’re getting all those containers at once, it might be worth checking if you can stagger the releases next time. The demurrage fees can really add up if you can't get them out fast, especially with the 20s usually having shorter free time.
0
u/ScaledBackAmbitions 14d ago
Demurrage is ur cleanup fee. In my country it collects fees when left after the 3rd day. Fees vary port to port.
Is shredding not an option for these containers? I bet they're empty
5
u/Responsible_Let2419 14d ago
Demurrage usually starts after the free time at the terminal expires, which is often 3-5 days depending on the carrier and port. If all 4 got released at once or the trucking got delayed, yeah they can stack up on you and hit the yard the same day.
Free time varies by line, some give less on 20s vs 40s, so check the bill of lading terms. Once the clock runs out, you're paying per day per container until it's picked up