How to Avoid Detention and Demurrage

Detention and demurrage are among the most common avoidable logistics costs in import and export operations. They usually do not arise from one single mistake. They happen when documentation, clearance, duty payment, transport and cargo release are not synchronized.

Businesses can reduce these costs by planning early and maintaining clear ownership of each step.

Practical ways to reduce detention and demurrage

1. 1

   Start documentation before cargo arrival

   Do not wait for the vessel or aircraft to arrive. Invoice, packing list, transport document, licence, certificate and regulatory documents should be checked early.

2. 2

   Confirm free time

   Know the free time allowed by shipping line, CFS, ICD, terminal or warehouse. Track the last free date carefully.

3. 3

   Review documents for mismatch

   Check consignee name, cargo description, weight, package count, invoice value, HS classification and BL/AWB details.

4. 4

   Plan duty and payment readiness

   Delay in duty payment or fund arrangement can stop clearance even when documents are ready.

5. 5

   Keep transporter ready

   Cargo release is not enough. Vehicle placement, route planning and unloading readiness should be arranged in advance.

6. 6

   Track customs queries quickly

   Any query or document requirement should be responded to immediately with proper supporting papers.

7. 7

   Escalate before the last free date

   Do not wait until charges start. Escalate when there is risk of delay.

8. 8

   Maintain one shipment owner

   Every shipment should have a clear internal owner responsible for document ageing, clearance status and next action.

Warning signs

• warning Original or telex release not ready
• warning Invoice and packing list mismatch
• warning CHA/customs broker waiting for documents
• warning Duty amount not arranged
• warning Transporter not confirmed
• warning Importer not responding to query
• warning Free time ending within 48 hours