Demurrage and detention charges are also added with port charges to provide services like port storage, early arrival, late arrival, and shifting. This way the shipping charges increase unbelievably and It is really unpleasant when you are charged extra fees in every step of the procedure.
So you must know what all kinds of charges and breakeven costs are added by a cargo shipping company to the final shipping bill. So, let’s dive deep into the concept of “Port Charges”.
THC (Terminal Handling Charges)-
A certain amount of charge levied by the port for handling, loading, and discharge of the container is called a terminal handling charge. THC is charged at both ports, at the port of loading and the port of discharge as well. It is also taken at the transshipment ports along the long route, which is totally up to the shipping liners companies. Usually, it is not shown in the price breakdown because this quantity is added to the ocean freight from the beginning by the shipping liner company. Terminal Handling Charges are not a fixed rate. It always varies from liner to liner and port to port.
Early arrival charges-
There are several reasons for the early arrival of the container to the port which causes extra changes called early arrival charges. At times, when the container misses the stack of the previous vessel date and stays there a long time until the next vessel, some extra dollars are added to the invoice by the shipping liner.
Late arrival charges-
A late arrival charge is added to the port charges when the container reaches the terminal after its schedule stacks have been closed. This usually happens due to delays in documentation and delay in road transportation and some other unexpected situations.
Port Storage charges-
In the big list of the variety of charges added to your container while shipping and transshipment, the Port Storage Charge is something you can’t escape. According to the port authority, these charges are added for full containers which are waiting to be shipped and empty containers stacked within the port. These charges are passed from the terminal operator to the shipping liner directly but a margin is often added.
Some sports give permission to do the cargo stuffing and stuffing within the port premises. This amount is comparatively less than the other port charges we have discussed. You can avoid it by doing cargo stuffing at your own factory or your godown of goods.
Detention and Demurrage-
Among a list of unavoidable charges here we have one avoidable charge which is the detention and demurrage charge. These charges are sometimes added when there is Miss handling and missed communication followed by failed operation. To avoid this charge the protocols of the Port authority must be followed strictly. These costs create a lot more tension for the customer because it is quite high that sometimes customers refuse to take away their own cargo from the destination port. In today’s market, most of the liners’ detention and damage charges are combined. In some rare cases, it is added separately so it is really important to know the difference between these two charges. Demerit charges are added when the customer does not take delivery of the container and takes it away from the port or terminal within the particular provided time period. Detention charges come to the list when the customer or importer is unable to return the empty container to the nominated empty depot before the given date. Usually, this shipping liner provides 7 days damage-free days and 10 days detention-free days and is added with 3 days of free extensions. Container shipping operations are quite costly because maintenance repair and container leasing take around 20% of the shipping line of cost. So it is better to do everything smoothly and avoid giving damage and detention charges.
Summing up-
In short no one is pleased to spend some extra dollars in business when he can save it by going through proper steps and protocols. When hundreds of dollars are added in the list of Port charges it causes a loss of the customer’s business because when shipping cost increases there is very little margin-left to make any profit out of his business. So you must avoid these non-budgeted and forced charges. Get to know about all charges and breakdowns properly. It is possible with a trust for the cargo shipping company who is transparent to make affair business.