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What is demurrage and how to avoid it

If you work with sea freight you have certainly heard of demurrage. Therefore, you also know that it is best to avoid it. In this article we will explain its meaning and list the best practices to avoid this charge.

Definition of derrumage

The word derrumage is of French origin and means stay. This is a daily fine applied to the importer who exceeds the contracted period. This period varies according to the negotiation with the cargo agent / shipowner. This charge is legally provided for in the Brazilian Commercial Code. But, to be applied, it needs to be provided for in the contract between importer and shipowner, in a specific clause for it. The charge is made in dollars and according to what was really extrapolated, that is, it is proportional to the time used in more days.

Most common causes of demurrage

The causes for this penalty to be charged are diverse, but the most common are:

- the delay in delivering the cargo;

- waiting for the ship in the bar due to lack of free berth;

- the lack of customs clearance;

- the breaking of earth cranes;

- the lack of transport to receive or deliver the cargo to the side.

Best practices to avoid

Have structured compliance, which controls the documentation, releases, deadlines and classification of goods. Thus, delays in the clearance of the cargo and consequently the payment of fees such as demurrage are avoided. Another way to avoid demurrage is to act with your customs broker to remove the goods as soon as possible. In case of delay in the release of the product, it is possible to use a port terminal. Another solution is to change the container, in which the importer buys equipment with the same specifications and passes it on to the shipowner - name given to the carrier - within the agreed period. Subsequently, when vacating the container, he sells it and recovers the money from the purchase. It is still possible to place the order for spawning of the merchandise, since there are specialized companies for this and with a cost lower than the value of the surcharge. With the spawning of the product (s), the container is returned within the contracted term.

Conclusion

Through this article we were able to highlight the importance of having the services of companies specialized in import and export for their operations to be successful.

Take control of this documentation and the entire import process by hiring our services.

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