Short answer: Berthing charges at the port are almost always incurred due to bad timing – either due to delivery too early, before the cut-off time (storage at the port of departure), or due to collection too late at the port of destination (exceeding the free storage period). By keeping track of cut-off times, agreed free days and collection times, you can avoid these preventable costs appearing on your invoice.
The key points in 5 points
- Stand fees are caused by goods being delivered too early or collected too late.
- The Cut-off time is the deadline for acceptance – not too early, not too late.
- At the port of destination, the Leave periods (days off).
- Full documents avoid delays in approval.
- Good coordination with the haulage contractor is the best safeguard.
What exactly are stand fees?
Standing charges (sometimes also referred to as storage or demurrage charges) are incurred when a vehicle longer than planned as stated at the terminal. This can happen at the port of departure (early delivery prior to loading) or at the port of destination (the vehicle is not collected after the free period has expired). In both cases, the terminal charges for the additional waiting time.
How can you avoid berthing charges at the port of departure?
The key is the Cut-off time – the latest time by which your vehicle must be at the terminal. Please deliver not too early otherwise there will be a delay before loading; but also not too late, otherwise you will lose your booking. For details of how the process at the port works, please see Port procedures for RoRo. Allow a little extra time before the cut-off time – but only as much as is necessary.
How can you avoid demurrage charges at the port of destination?
At the port of arrival, terminals and shipping companies usually grant a free days for collection. After that, storage charges will apply. Here’s how to keep costs under control:
- Understanding the notice period: Please check the exact number of days off in advance.
- Preparing for collection: Make sure you sort out customs clearance and transport from the port well in advance.
- Have the following documents to hand: Missing documents are holding up approval – and the clock is ticking.
We show you the status milestones your vehicle goes through under From gate-in to release.
What role do the documents play?
Incomplete or incorrect documentation is one of the most common causes of delays in clearance – and consequently of demurrage charges. Please ensure that your export declaration is complete via the The customs authorities’ ATLAS procedure as well as the correct import documents in the country of destination.
Your timing checklist
- Cut-off time Check with the shipping company and factor this in as a firm deadline.
- Delivery Schedule it just in time, but well before the cut-off time.
- Leave period to be clarified at the port of destination.
- Collection and customs make preparations in the destination country before the ship arrives.
- Documents Keep it available in its entirety and in a digitally secured format.
FAQ
What is the difference between demurrage and storage charges?
Both terms refer to costs incurred for exceeding lay-up times. Storage charges usually relate to storage at the terminal, whilst demurrage relates to exceeding the free time allowance. In practice, both involve additional lay-up costs.
How many Fridays will I have at my destination port?
That depends on the shipping company, the terminal and the route. Please check the exact number in advance and plan your collection accordingly.
Can I deliver too early?
Yes – and this may result in berthing charges at the port of departure. Please deliver with a tight but safe margin before the cut-off time.
Who pays the stand fees?
Usually the consignor or consignee. That’s why careful timing is worth the effort – the charges can almost always be avoided.
How can a haulage company help me with this?
An experienced freight forwarder coordinates cut-off times, delivery, clearance times and collection, and keeps you informed of the status – ensuring that unnecessary downtime is avoided from the outset.
All the information in this article has been carefully researched, but is subject to change at any time. ODS Orient accepts no liability for the timeliness, accuracy or completeness of the information provided. Please contact us directly for a no-obligation quote.
