Navigating the Port: How to Avoid Costly Inbound Container Charges
In the world of international shipping, "free time" is a luxury that runs out faster than you’d think. For many shippers, the excitement of a container arriving at the port is quickly dampened by a surprise invoice for demurrage, detention, or terminal storage fees.
At Lantrax, we believe in Worry-Free Delivery™, which means helping you navigate the complexities of the port before your cargo even hits the water.
Here is your guide to understanding these charges and, more importantly, how to steer clear of them.
1. Know Your Enemies: Demurrage vs. Detention
To avoid the fees, you first have to understand what they are. While often used interchangeably, they represent different stages of the delay:
Demurrage: Charged by the shipping line when your full container stays at the port terminal beyond the allotted free time (typically 4–7 days).
Detention (Per Diem): Charged when you’ve picked up the container, but you hold onto the equipment (the container and chassis) longer than allowed before returning the empty to the terminal.
Port Storage: Charged by the terminal itself for the physical space your container occupies. This is separate from demurrage and can sometimes accrue simultaneously.
2. The Golden Rule: Pre-Clear Your Cargo
The most common cause of port delays is paperwork. If your Customs entry isn't filed and cleared before the ship docks, your container is a sitting duck.
Action Step: Ensure your commercial invoice, packing list, and Bill of Lading are accurate and submitted to your broker at least 48–72 hours before arrival.
3. Coordinate Your Drayage Early
Don't wait for the "vessel arrived" notification to start looking for a truck. The best drayage carriers (truckers who move containers from the port) are often booked weeks in advance.
The Lantrax Advantage: We work with an extensive network of over 20,000 carriers. By planning your "last mile" delivery early, we ensure a driver is scheduled to pull that container the moment it’s discharged and cleared.
4. Negotiate More "Free Time" Upfront
Everything in shipping is negotiable if you do it before you book. If you know your warehouse has a slow unload turnaround or you're shipping to a notoriously congested port (like Vancouver), ask for extended free time in your initial contract.
Pro Tip: It’s much easier to get 10 days of free time at the start than to beg for a waiver once the fees have already hit $200/day.
5. Have a "Plan B" for Storage
If your warehouse is full and you can't take the delivery, don't leave the container at the port. Terminal storage rates are designed to be punitive. They get more expensive every day they sit.
The Solution: Use off-dock storage or a bonded warehouse. Lantrax offers flexible warehousing and yard storage solutions that are significantly cheaper than paying daily port penalties.
6. Use Technology to Track the Clock
You can't manage what you don't measure. Use real-time tracking to monitor the Last Free Day (LFD).
Action Step: Set alerts for 48 hours and 24 hours before the free time expires. This gives your logistics team a final window to pivot if a delay occurs.
The Bottom Line
Avoiding port charges comes down to two things: Information and Speed. By staying proactive and having a partner who handles the heavy lifting, you can keep your supply chain moving without the budget-breaking surprises.
Tired of surprise port invoices? Contact the experts at Lantrax today and let us handle your next inbound shipment with Worry-Free Delivery™.