Navigating Detention & Demurrage Challenges During Port Congestion

Written by Expeditors 2 minute read

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Those persons, cities, and countries feeling the impact of the novel coronavirus outbreak are in our thoughts and we wish for a quick solution and an end to the associated suffering. 

Weakened consumer demand due to the COVID-19 pandemic is a challenge many industries are currently facing. This reduction in demand could result in a stockpile of full containers in terminal yards around the world and lead to port congestion.

If a rise in port congestion occurs, the industry could face extended wait times at gates, limited ability to retrieve containers in overfilled terminals, and longer yard turn time for container pick-up. Moreover, port congestion would give rise to cash flow challenges for truckers who pay detention and demurrage fees.

These challenges could also result in additional complexity for managing pick-ups, appointment times, a potential approval process, and the return of empty equipment.

Here are four ways Expeditors can help successfully maneuver demand cycles and mitigate excess storage costs caused by port congestion.

  1. By retrieving full containers from the terminal and delivering them to your facilities for storage. This allows easy access to your containers, prevents excess demurrage fees, and provides peace of mind since they will be in your facility.

  2. Delivering containers to an off-dock container yard to be stored.This will reduce cost since detention, storage, and chassis fees are less expensive than demurrage. However, this option also has its limitations because it depends on the availability of off-dock container yards in your area. There is a risk of congestion and a potential lack of security at the container yard. 

  3. Delivering cargo to a deconsolidation facility close to the port can help reduce detention and demurrage charges. Though cost effective for storage, this option is dependent upon capacity and may not be available globally.
  1. Storing your cargo at our local warehouses. This solution allows you to ship to your customers directly from our secure facilities while reducing your detention, demurrage, and storage fees.

If higher detention and demurrage fees are a concern for your business, we encourage you to engage your local Expeditors representative. Market conditions and solutions will vary by location, but we are confident we have a solution to fit your needs.

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Blog was originally posted on April 13, 2020 9 AM

Topics: COVID-19

Expeditors

Written by Expeditors

2 minute read