When people plan an import they usually count the price of the goods, the freight and the duty. The costs that surprise them are the ones that grow while the cargo sits waiting: storage at the port or container freight station, and demurrage charged by the shipping line when its container is held longer than the free days it allows. Each day is a small amount, but a delay of two weeks can wipe out the profit on a shipment.

What the charges are

  • Storage charges are paid to the port or the container freight station for keeping your cargo in their yard or warehouse after the free period ends.
  • Demurrage is paid to the shipping line for keeping its container outside the port after the free days run out.
  • Detention is similar, charged when the container is held at your premises beyond the allowed time.

Each of these has a number of free days, and after that the daily rate usually rises the longer you wait. Ask your agent or the shipping line for the exact terms before the cargo ships, not after it arrives.

Why cargo gets stuck

Almost every delay has one of a handful of causes:

  • Missing or wrong documents. The invoice does not match the packing list, the bill of lading names the wrong party or a certificate is missing. Use the import documents checklist before the goods leave their origin.
  • Classification disagreements. If the customs code you declared is questioned, the cargo waits while it is resolved. See HS codes and customs classification.
  • Valuation queries. Customs may ask for proof of the price you paid; our guide to customs valuation explains how value is set.
  • Standards and inspection requirements. Some goods need conformity checks before release; read KEBS, PVoC and import standards.
  • Duty not paid on time. The cargo cannot be released until the assessed amount is paid.

For a fuller list, read why imports get delayed at the port.

Steps that keep costs down

  1. Know the free days. Write down the dates and set reminders for the day before they end.
  2. Send the documents early. Ask your supplier for scans as soon as the cargo is booked, and check them against each other before the ship sails.
  3. Choose a clearing agent who is responsive. A good agent answers questions the same day. Our comparison of using a clearing agent or clearing it yourself helps you decide.
  4. Have the money ready. Calculate the duty and taxes before arrival with the import duty calculator, and keep the funds available so payment is not the reason for delay.
  5. Plan transport. Book the truck before the cargo clears so it does not wait at the port a day or two for collection.
  6. Consider the mode. Faster transport can cost less overall if storage and tied-up cash are counted. See air freight versus sea freight.

Put the charges into your landed cost

Include a sensible allowance for extra days in your costings. The landed cost calculator adds up the price, freight, duty and other charges, and the import duty and landed cost workbook lets you keep the actual figures for each shipment so you can compare plan and reality. If you import vehicles, the car import duty calculator covers the duty, and how much it costs to import a car lists the other charges.

Keep a record of every shipment

After each shipment, write down how many days the cargo spent at each stage and what each day cost. Over a few shipments you will see exactly where time is lost, whether it is the supplier's documents, the agent or the inspection, and you can fix that link first. Read how to lower your landed cost legally for more ways to keep the total down.

The short version

Free days are a deadline. Clean documents, early payment and a ready truck keep the cargo moving, and the daily charges stay at zero.

When a delay is not your fault

Sometimes the delay comes from the port, the system or the shipping line rather than from you. Keep every email, reference number and date of contact, and ask your agent to put the cause of the delay in writing. If you have evidence that the cargo could not be released through no fault of your own, you can ask the shipping line or the facility for a waiver or a reduction of the charges. The request is far more likely to succeed when it is polite, early and supported by documents.