As a business owner who relies on freight delivery services, you understand the financial impact demurrage charges have on your bottom line. These charges are levied when cargo is left in the terminal beyond the allotted free time and can drastically increase shipment costs. Use these helpful tips to minimize the charges your business has to pay.

How to Prevent Freight Delivery Demurrage Charges

1. Ask for More Free Time

When negotiating the terms of agreement with the terminal, don’t be afraid to request additional free time. The amount of free time given varies by provider, so they may be willing to provide more for you to remove the shipment without incurring a penalty. Terminals are more inclined to grant additional free time to companies with high levels of shipments to keep that business.

2. Pre-Clear Your Cargo

Demurrage charges are often incurred because of cargo held up by the clearance process. To ensure this doesn’t happen to you, always pre-clear the shipment when possible.

For most shipments, you can have the cargo cleared up to five days before it arrives at the terminal. You’ll need to provide the commercial invoice, the PO information, the cargo packing list, the terms of sale, and the country of origin.

3. Dispatch in Advance

Provide clear instructions to delivery drivers before the cargo arrives at the terminal. If you have cargo that takes extra time to unload or the port is known to be congested, they’ll need to plan accordingly to ensure everything is removed before the free time expires. You’ll also avoid having to scramble to find a partner due to limited trucker availability.

4. Have a Backup Plan

Having contingency plans in place for different scenarios gives you the flexibility to ensure you don’t have to pay demurrage charges. These may include providing the driver with different routes and having an alternative driver on call if needed. When delivering to congested ports, consider using a forwarding service or rerouting the shipment to a less busy one.

5. Adapt Every Year

Use historical trends to analyze your shipping methods and adjust them as needed to avoid extraneous charges. Researching past delay times provides insights that can help you decide which terminals require more of your free time. It can also help designate which times of the year are optimal for your type of cargo.

Make sure your cargo gets to its destination safely and on time by working with the experts at MFS Freight Service. With more than 50 years of freight delivery experience, this Honolulu, HI, business offers a wide array of shipping services to expedite the process and minimize unnecessary charges. Learn more about their services online, or call (808) 847-3015 to schedule a shipment.