Checklist for Demurrage Claims: Free Time, Possible Dispatch Dates, and Cost Allocation
Interlink編集部Points to Confirm When Receiving a Demurrage Claim
When you receive a demurrage claim, you should not decide whether to pay based solely on the invoiced amount. It is necessary to verify which container is involved, the period in question, and why it was not possible to release the container from the CY or terminal.
Demurrage is an excess storage charge incurred when import containers cannot be released from the CY or terminal within the designated free time. After import containers are discharged from the vessel and stored in the CY, a certain free storage period may be granted. This free period is called the free time. If the imported container remains at the CY or terminal beyond this free time, demurrage charges may apply.
It is important to note that even if the Import Permit has been obtained, immediate CY gate-out is not always possible. Import Permit, D/O exchange, D/O-less processing, cost settlement, confirmation of gate-out eligibility, gate-out booking, drayage arrangement, and consignee acceptance at the delivery destination are all separate checkpoints. If any one of these steps is delayed, the free time may be exceeded, leading to a demurrage claim.
Scope Covered in This Article
| Topic | Contents Covered in This Article | Contents Covered in Other Articles |
|---|---|---|
| Demurrage Claim Verification | Steps to verify claim period, rates, relevant containers, and gate-out dates after receiving a claim | Basic definitions of Demurrage and distinctions from Detention and Storage are covered in the Demurrage article |
| Free Time Confirmation | Start date, end date, demurrage start date, and treatment of weekends and holidays for Free Time | Contract conditions and extension negotiation of Free Time are covered in related Free Time articles |
| D/O Procedures | Verification of D/O exchange, D/O-less processing, Original B/L, Surrendered B/L, and Sea Waybill | D/O, D/O-less, Arrival Notice, and B/L types are covered in separate articles |
| Customs Clearance and Import Permit | Effects of import declaration, Import Permit, customs inspection, and other regulatory checks on gate-out | Import Permit, customs inspection, and regulatory checks are covered in customs clearance related articles |
| Gate-Out Feasibility Confirmation | Methods to confirm whether cargo can actually be gate-out from CY or terminal after Import Permit | Gate-out after Import Permit, CY gate-out, and gate-out reservations are covered in specialized articles |
| Drayage and Delivery Destination Coordination | Confirmation of gate-out booking, drayage vehicles, delivery destination acceptance, and unloading booking | Drayage, delivery booking, and additional inland delivery costs are covered in related articles |
| Cost Liability Arrangement | Distinguishing responsibilities among importer, freight forwarder, customs broker, shipping company, NVOCC, and terminal | Freight forwarder and carrier liability, subrogation practices are covered in liability-related articles |
| Details of Causes | This article covers representative verification points; detailed responses by cause are delegated to other articles | Specific situations where Demurrage occurs are covered in the article “Situations When Demurrage Occurs” |
Differences Between Demurrage, Detention, and Storage
Before confirming a demurrage charge, first verify whether the billed fee is truly demurrage, detention, or storage. Although the names are similar, they differ in the applicable period, management target, billing party, and reference documents.
| Item | Demurrage | Detention | Storage | Practical Points for Confirmation |
|---|---|---|---|---|
| Main Meaning | Overdue storage charges for loaded containers remaining at the CY or terminal | Delay charges for late return of empty containers after CY gate-out | Storage fees at terminals, CFS, warehouses, etc. | Confirm not only the billed name but also the applicable period and location |
| Applicable Period | From vessel discharge until CY gate-out | From CY gate-out until empty container return | Period during which cargo or containers are stored within the facility | Differ between charges incurred before or after gate-out |
| Main Target | Loaded containers | Containers after gate-out and empty container returns | Cargo, containers, or warehouse storage units | Confirm whether it’s FCL or LCL, container unit or cargo unit |
| Main Billing Party | Shipping line, NVOCC, etc. | Shipping line, NVOCC, etc. | Terminals, CFS, warehouses, shipping lines, etc. | Identify who is issuing the charge |
| Dates to Confirm | Discharge date, end of free time, CY gate-out date | CY gate-out date, devanning date, empty container return date | Storage start date, release date, storage end date | Cross-check billing period with actual records |
| Key Management Focus | D/O, customs clearance, gate-out reservation, drayage, consignee acceptance | Devanning, empty container return, return location, return reservation | Storage location, release conditions, storage rates | Distinguish whether it is a demurrage charge or a separate fee |
Confirmation of Free Time and Starting Date
The most important aspect when handling demurrage claims is to accurately confirm the starting and ending dates of the free time period. Free time varies depending on the carrier, NVOCC, route, container type, cargo type, and contract terms. The day counted as the start date may also change depending on the conditions.
| Item to Confirm | Meaning | Practical Confirmation Method | Notes |
|---|---|---|---|
| Vessel Arrival Date | The date the vessel arrives at the port | Confirm via Arrival Notice, vessel status, or carrier notifications | The arrival date and the discharge date may differ |
| Discharge Date | The date the container is unloaded from the vessel | Confirm via carrier, NVOCC, or terminal information | May differ from arrival date depending on cargo handling status |
| Availability Date | The reference date from which the container is considered available for pick-up | Confirm with carrier, terminal, or pick-up reservation system | May affect the start of free time |
| Free Time End Date | The date when the free storage period expires | Confirm with carrier or NVOCC tariff, Arrival Notice, or contract terms | Check whether weekends and holidays are included or if business days are counted |
| Demurrage Start Date | The date when excess storage charges begin | Confirm with invoice details, tariff, or carrier response | Some rate structures increase unit prices stepwise |
| Definition of Completion of Pick-up | The point at which demurrage charges stop | Confirm with carrier, NVOCC, or terminal conditions | Often based on actual gate-out, not just pick-up reservation |
| Subject Containers | Container numbers subject to the claim | Confirm using invoice, B/L, D/O, or pick-up records | Within multiple-container cases, days may differ container by container |
Timeline When Demurrage Occurs
Demurrage arises between the arrival of import containers at the port and their gate-out from the CY. When verifying a charge, you should check not only the invoice but also which phase was delayed in the timeline.
| Timeline | Main Status | Cost Risk | Points to Confirm |
|---|---|---|---|
| Vessel Arrival | The vessel carrying import containers arrives at the port | May affect the start of Free Time calculation | Confirm ETA, port arrival date, and cargo handling schedule |
| Unloading & CY Storage | Containers are unloaded from the vessel and stored in the CY | Free Time period progresses | Check unloading date, Availability Date, and scheduled gate-out date |
| Arrival Notice Confirmation | Confirm arrival notice, charges, D/O conditions, and Free Time | Omitting confirmation may delay subsequent arrangements | Record the A/N receipt date, forwarding date, and date of confirmation request |
| D/O Processing | Proceed with issuing or waiving the Delivery Order | Goods cannot be gated out without completion of D/O | Verify B/L, surrender status, Sea Waybill, and charge settlement |
| Import Customs Clearance | Submit import declaration and obtain Import Permit | Gate-out is not possible without an Import Permit | Confirm document completeness, customs inspection, and other regulatory checks |
| Gate-Out Eligibility Check | Confirm if CY or terminal allows gate-out | Cannot gate out if holds or unpaid charges exist | Check gate-out permission display, presence of holds, and whether a gate-out reservation is required |
| Gate-Out Reservation & Drayage Arrangement | Arrange gate-out booking, truck, chassis, and delivery acceptance at destination | Shortage of vehicles or insufficient booking may lead to demurrage | Confirm gate-out date, delivery time, and drayage availability |
| CY Gate-Out | Containers are gated out from the CY | Marks the end of the demurrage applicable period | Verify gate-out completion date, gate-out record, and container numbers |
| Post Gate-Out | Proceed to delivery, unpacking, and empty container return | Detention management primarily applies from this stage | Confirm return deadline, return location, and return reservation |
Workflow and Decision Points in Practice
| Stage | Items to Confirm | Key Decision Points | Actions if Issues Arise |
|---|---|---|---|
| Arrival Notice Confirmation | Vessel name, ETA, B/L number, container number, delivery location, free time, cost conditions | Check the free time end date and the demurrage start date | Share the deadline with the consignee and calculate the planned out-gate date |
| B/L and Delivery Terms Confirmation | Original B/L, surrendered B/L, or Sea Waybill | Confirm whether D/O exchange or D/O-less processing can proceed | If unprocessed, verify with the overseas party, shipping company, or NVOCC |
| Customs Preparation | Invoice, packing list, other regulatory documents, HS code, tariff number, quantities | If confirmation before declaration takes time, free time may be consumed | Set clear request dates and response deadlines for missing documents |
| Import Declaration and Permit | Import declaration date, customs permit date, presence/absence of customs inspection | Confirm whether the permit will be issued within free time | If inspection or document discrepancies occur, review the planned out-gate date |
| D/O Processing and Cost Settlement | D/O exchange, D/O-less, freight and miscellaneous cost settlement | Even with import permit obtained, cargo cannot be moved out if D/O is incomplete | Check D/O completion date, payment date, and system reflection date |
| Out-gate Availability Confirmation | Whether gate-out is possible at CY or terminal | If unable to gate out, isolate the cause | Verify holds, unsettled payments, inability to reserve, and terminal restrictions |
| Out-gate Reservation and Delivery Arrangement | Terminal reservation, drayage vehicle, consignee acceptance | Secure reservation and vehicle to complete out-gate within free time | If reservation is not possible, share earliest possible out-gate date and estimated costs |
| Post-occurrence Review | Reason for delay, instructions from involved parties, records, invoices | Confirm at which stage and for how many days cargo was held | Create a chronological table to prepare for cost burden discussions |
Common Causes of Demurrage
| Cause | Main Details | Responsible Parties for Resolution | Ease of Pre-check |
|---|---|---|---|
| Uncompleted D/O or D/O Response Not Reflected | Incomplete processing of B/L, surrender confirmation, D/O exchange, or D/O response information update | Shipping company, NVOCC, freight forwarder, importer | Easy to pre-check. Must be verified before gate-out |
| Unpaid Fees | Unpaid or unreflected payment of ocean freight, THC, D/O fees, CFS charges, or advance payments | Importer, freight forwarder, shipping company, NVOCC | Easy to pre-check. Attention needed for payment reflection timing |
| Customs Clearance Delay | Time-consuming document deficiencies, pre-declaration checks, customs inspection, other regulatory confirmations, and HS code verification | Importer, customs broker, relevant government agencies, customs | If documents are delayed, risk can be identified in advance |
| Unable to Secure Gate-Out Reservation | Unable to gate-out on desired date due to terminal reservation slots, CFS release slots, or port congestion | Freight forwarder, drayage company, terminal, CFS | Check early during peak seasons, before holidays, or after typhoons |
| Insufficient Drayage Vehicles | Inability to secure trucks, chassis, or drivers | Drayage company, freight forwarder | Avoidable through early arrangements, but caution needed during busy periods |
| Delivery Destination Unable to Accept Goods | No acceptance slots available at the delivery destination, full warehouse, shortage of unload personnel, or non-working days | Importer, delivery destination, warehouse, freight forwarder | Easy to pre-check. Confirm acceptance availability before gate-out |
| Vessel Delay or Port Congestion | Vessel delay, cargo handling delay, terminal congestion, or system failures | Shipping company, terminal, port stakeholders | May be confirmed only on the day. Continuously monitor vessel movements |
| Dangerous Goods, Reefers, Special Containers | Short free time, strict storage or gate-out conditions, power management, or dangerous goods restrictions | Shipping company, NVOCC, terminal, freight forwarder | Easy to pre-check. Do not assume same conditions as regular containers |
Practical Scenarios and Cost Allocation Clarification
| Scenario | What Is Happening | Documents to Check | Cost Allocation Perspective |
|---|---|---|---|
| Surrender confirmation has not been reflected on the discharge port side | Import Permit is issued, but D/O-less processing is not progressing and CY gate-out cannot be done | Surrender request record, shipping agent at origin response, carrier/NVOCC processing history, Arrival Notice | Check if delay is due to overseas handling, freight forwarder oversight, or late document instructions from the importer |
| Import Permit delayed due to customs document discrepancies | Issues with product name, quantity, price, origin, or other regulatory documents caused delays in pre-declaration verification | Invoice, Packing List, correction request emails, declaration history, records with customs and related authorities | Clarify if the cause is deficiencies in the shipper's documents or delays by customs broker/freight forwarder in verification |
| No acceptance slot at delivery destination prevents gate-out | No issues with customs or D/O, but container cannot be moved out from CY due to delivery destination circumstances | Delivery reservation records, delivery destination responses, delivery instructions, email communications with importer | Confirm whether the issue is due to delivery destination or importer circumstances, or insufficient advance confirmation by the freight forwarder |
| Gate-out booking or drayage truck availability not secured | Gate-out is possible, but free time cannot be utilized due to lack of booking slots or trucks | Gate-out booking screen, requested times to drayage companies, dispatch responses, terminal congestion info | Check whether early arrangements could have been made or if external factors such as port congestion caused the delay |
| Gate-out stopped due to customs inspection or other regulatory confirmation | Import Permit or gate-out delayed due to inspections or regulatory confirmations | Inspection notices, documents for regulatory confirmation, declaration history, inspection completion date, permit date | Confirm if delay was due to normal procedural timing or caused by documentation/ declaration deficiencies |
| Schedule disrupted by vessel delay or cargo handling delay | Vessel arrival or CY gate-in delayed, causing delays in planned customs, gate-out, and delivery | Vessel movement reports, terminal information, carrier announcements, dispatch change records | Distinguish between delays caused by external factors and delays caused by late re-scheduling after the delay |
| D/O processing stopped due to unpaid charges | Unpaid freight, THC, D/O Fee, etc., or payments not reflected are preventing cargo release processing | Invoices, payment records, remittance date, payment reflection date, carrier/NVOCC responses | Determine whether stoppage is due to delayed payment instruction, slow payment processing, or insufficient notification |
| Multiple causes compounded, leading to free time overrun | Small delays at each stage: D/O processing, customs, delivery booking, drayage arrangements | Arrival Notice, D/O records, declaration history, delivery booking, drayage arrangement records | Organize not only the final cause but also the delay duration at each stage chronologically |
Precautions for Dangerous Goods, Reefers, and Special Containers
| Container / Cargo Type | Reasons for Stricter Conditions | Points to Confirm | Practical Considerations |
|---|---|---|---|
| Dangerous Goods Container | Storage location, hazardous material classification, quantity limits, storage restrictions imposed by the terminal | Hazard class, UN number, gate-out availability date, storage restrictions, gate-out booking | Requires earlier confirmation than regular containers |
| Reefer Container | Power supply management, temperature control, plugin fees, constraints of terminal equipment | Temperature settings, power supply fees, plugin status, gate-out time window | Additional storage and power fees may apply |
| Flat Rack / Open Top | Loading/unloading equipment, storage space, gate-out vehicle, and chassis are limited | Gate-out requirements, vehicle type, handling method, terminal acceptance restrictions | Usual dry container vehicle arrangements may not be suitable |
| Cargo Likely to be Subject to Inspection | Delays caused by other regulatory checks, customs inspections, sample tests, etc. | Inspection schedule, required documents, expected completion date, gate-out available date | Confirm inspection dates and relationship to free time early |
| High-Value Cargo / Large-Scale Cases | Large number of containers, where a few days delay can incur significant costs | Number of containers involved, daily rate, tiered charges, gate-out availability date | Prepare a list showing occurrence date and gate-out date by container |
Relationship with Storage Charges for CFS Cargo
For LCL cargo, storage charges at the CFS or warehouse storage fees may become an issue until the cargo is picked up from the CFS. For FCL cargo, demurrage is generally charged for containers remaining at the CY, while for LCL cargo, storage fees are charged for cargo remaining at the CFS. The billing entities and fee structures may differ accordingly.
| Category | Target | Common Charges | Points to Confirm |
|---|---|---|---|
| FCL Cargo | Container unit | Demurrage, terminal-related charges | CY gate-out available date, free time, gate-out reservation, drayage |
| LCL Cargo | Cargo units sorted at the CFS | CFS storage charges, warehouse storage fees, outbound-related fees | CFS in-gate, completion of sorting, D/O processing, available outbound date |
| When the billing name is unclear | Container or cargo | Demurrage, storage, CFS charges | Billing entity, applicable period, storage location |
Key Documents and Reference Materials
| Document | Details to Confirm | Contact Party | Purpose of Confirmation |
|---|---|---|---|
| Arrival Notice | Vessel name, ETA, B/L number, container number, in-gate location, free time, billing details | Shipping line, NVOCC, freight forwarder | Confirm arrival conditions and cost terms |
| B/L, Surrendered B/L, Sea Waybill | Cargo release conditions, consignee name, B/L number, surrender confirmation | Overseas party, shipping line, NVOCC | Confirm readiness for D/O processing |
| D/O or D/O status confirmation | Whether cargo release procedures are completed | Shipping line, NVOCC, freight forwarder | Confirm prerequisites for gate-out |
| Import Permit | Whether import permit has been obtained through customs | Customs broker, importer | Confirm if customs restrictions affect cargo release |
| Gate-out Clearance Information | Whether gate-out is allowed at CY or CFS | Terminal, CFS, shipping line | Confirm cargo is releasable after import permit |
| Gate-out Booking Information | Gate-out reservation date, booking number, gate acceptance times | Terminal, drayage company, freight forwarder | Confirm actual gate-out date |
| Free Time Schedule & Tariff Table | Free time period, start date, handling of weekends/holidays, unit rates | Shipping line, NVOCC | Verify validity of billed days and rates |
| Delivery Instructions / Drayage Arrangement | Gate-out date, delivery destination, delivery vehicle, drayage arrangement status | Freight forwarder, drayage company, importer | Check causes of delay after gate-out clearance |
| Delivery Destination Acceptance Confirmation | Delivery reservation, acceptance time, reasons for non-acceptance | Importer, delivery destination, warehouse | Confirm whether delay is due to delivery destination conditions |
| Email and Instruction Records | Request date, response date, pending confirmations, instruction contents | All related parties | Serve as basis for cost responsibility discussions |
Common Misunderstandings
| Common Misunderstanding | Actual Perspective | Practical Notes |
|---|---|---|
| Free Time is the same for all carriers and all containers | Varies by carrier, NVOCC, trade route, container type, cargo type, and contract terms | Check individually via Arrival Notice, tariff schedules, and contract terms |
| Demurrage can be avoided once the Import Permit is issued | Even after the Import Permit, delivery may be blocked due to incomplete D/O, unpaid charges, insufficient pick-up reservations, shortage of drayage, or consignee rejection | Confirm Import Permit date separately from the actual gate-out date |
| Once a D/O is obtained, the cargo can be immediately taken out | After D/O issuance, confirmation of gate-out availability at the CY, pick-up reservation, transport vehicle, and consignee acceptance are still required | Cross-check the D/O issue date with the actual gate-out date |
| Demurrage is always the customs broker's responsibility | Causes may include not only customs delays but also B/L, D/O, charge settlement delays, carrier processing, terminal congestion, consignee circumstances, and drayage shortages | Separate causes chronologically |
| A day or two delay does not cause major problems | Unit rates may increase progressively; multiple or special containers can result in high costs | Check container count, unit rates, and tiered charge rates |
| Demurrage continues even after cargo removal | Typically, delays in returning empty containers after CY gate-out are handled as detention charges | Delineate charges before and after gate-out |
| Saturdays, Sundays, and holidays are always excluded from counting | Treatment of weekends and holidays differs by carrier, NVOCC, and contract terms | Confirm whether calculation is on business days or calendar days |
| The responsible party for charges is decided immediately upon receiving the invoice | Invoice alone does not determine the cause or the responsible party | Verify instructions from parties involved, records, gate-out availability dates, and actual gate-out dates |
Comparison Table of Freight Forwarder Involvement Scope
| Category | Support Typically Provided | What Should Not Be Definitively Stated | Practical Response |
|---|---|---|---|
| Free Time Confirmation | Confirm deadlines from Arrival Notice, tariff tables, and carrier/NVOCC notices | State that Free Time will always be extended | Specify the start date, end date, and demurrage start date |
| D/O Processing Confirmation | Verify B/L, surrender, D/O exchange, D/O release reflection, and cost settlement | Assume that cargo can be released without completed D/O | Record the date of D/O processing completion and the earliest possible cargo release date |
| Customs Clearance Status Confirmation | Organize declaration date, Import Permit date, customs inspections, and other regulatory checks | Assure that customs inspections can always be avoided | Record request date for confirmation, declaration date, Import Permit date, and inspection completion date |
| Cargo Release Reservation / Drayage Coordination | Coordinate cargo release reservation, vehicle, chassis, and consignee acceptance | State that same-day delivery is guaranteed if cargo release is possible | Confirm consignee reservation and vehicle availability simultaneously |
| Invoice Details Verification | Cross-check billing period, number of days, unit price, applicable containers, and gate-out records | Assume the carrier/NVOCC invoice is always correct without question | Compare Free Time schedules with actual cargo release dates |
| Cost Bearing Arrangement | Organize chronological tables, emails, request records, and response records | Determine cost bearer based on only a single cause | Confirm whether multiple causes are overlapping |
| Reduction / Waiver Negotiation Assistance | Assist with explanation of circumstances, submission of evidence, and reduction/waiver requests | Guarantee that reductions or waivers will always be granted | Negotiate based on contract terms, carrier discretion, and evidence provided |
Decision Checklist
| Confirmation Stage | Party to Confirm With | Items to Confirm | Action if Issues Are Found |
|---|---|---|---|
| Upon Receipt of Arrival Notice | Shipping Line, NVOCC, Freight Forwarder | Vessel Name, ETA, B/L Number, Container Number, Free Time, Cost Terms | Share the Free Time expiration date with the consignee |
| When Confirming B/L and Delivery Conditions | Overseas Party, Shipping Line, NVOCC, Importer | Original B/L, Surrendered B/L, Sea Waybill, Surrender Status | If unable to proceed with D/O processing, identify the reason for delay |
| During D/O Processing | Shipping Line, NVOCC, Freight Forwarder | D/O Exchange, D/O-less Reflected, Cost Settlement, Outstanding Fees | If there are unsettled or unreflected items, confirm the expected completion date |
| At Customs Clearance Preparation | Importer, Customs Broker, Freight Forwarder | Invoice, Packing List, Product Name, Tariff Code, Price, Origin, Other Regulatory Requirements | Request missing documents promptly and set a deadline for response |
| After Import Permit | Terminal, Shipping Line, NVOCC, Drayage Company | Readiness for Gate-Out, Holds, Gate-Out Reservation, Gate Conditions | Confirm reasons for inability to gate out separately for D/O, costs, and terminal issues |
| When Making Gate-Out Reservations | Drayage Company, Terminal, Delivery Destination | Reserved Gate-Out Date, Vehicle, Chassis, Delivery Destination Acceptance Time | If reservation is not possible, share the earliest gate-out date and estimated costs |
| Upon Receipt of Invoice | Shipping Line, NVOCC, Freight Forwarder | Target Containers, Billing Period, Unit Price, Number of Days, Free Time | Verify against actual gate-out date and gate-out records |
| During Cost Burden Negotiations | Importer, Freight Forwarder, Customs Broker, Drayage Company, Shipping Line | Cause of Delay, Instruction Records, Date of Confirmation Request, Date of Response, Possibility of Avoidance | Create a timeline table and organize the basis for cost allocation |
Scenario 1: When Surrender Confirmation Is Not Reflected, Stalling D/O-less Processing
Although the Import Permit has been issued, the Surrendered B/L processing has not been reflected on the discharge port side, preventing the D/O-less processing from proceeding. In this case, even if customs clearance indicates that cargo release is possible, cargo cannot be moved out of the CY because the shipping line or NVOCC’s cargo release process has not been completed.
In this case, confirm the surrender request date, the processing date at the shipping agent at the loading port, the date of reflection by the shipping line or NVOCC, and the D/O-less processing completion date. Organize these chronologically to determine whether the delay is due to overseas processing, a freight forwarder’s oversight, or delayed instructions from the importer.
Scenario 2: Delay in Import Permit Due to Customs Documentation Deficiencies
This scenario involves cases where there are deficiencies in the invoice, packing list, product description, quantity, price, country of origin, or other regulatory documents, causing delays in import declaration or Import Permit issuance. Since cargo cannot normally proceed to CY gate-out without the Import Permit, demurrage charges may accrue once Free Time is exceeded.
In this case, it is necessary to confirm when the customs broker or freight forwarder discovered the deficiencies, when they requested confirmation from the importer, when the response was received, and the dates of declaration and Import Permit issuance. Rather than simply categorizing the situation as customs delay, it is important to separately identify document deficiencies, delays in confirmation requests, and delays in importer responses.
Scenario 3: When Cargo Cannot Be Gate-Out Due to No Delivery Slot at the Consignee
This occurs even though the Import Permit and D/O process have been completed, but no delivery slot is secured at the consignee, preventing gate-out from the CY. For large warehouses, logistics centers serving mass retailers, or delivery destinations requiring reservations, the available delivery dates are limited, which can cause a mismatch between the gate-out date and the permitted delivery date.
In this case, the cause of demurrage is likely not customs clearance or carrier processing, but rather adjustments with the consignee or arrangements for inland delivery. Confirm when the delivery reservation was requested, what responses were received from the consignee, and on which dates the consignee was able to accept the cargo.
Scenario 4: Unable to Secure Gate-Out Reservation or Drayage Truck
This situation occurs when the container is ready for gate-out, but the gate-out reservation slot at the terminal or a drayage truck cannot be secured, preventing gate-out from the CY within the free time. This issue is especially common during peak seasons, around consecutive holidays, after typhoons, or during port congestion.
In such cases, it is important to confirm when the gate-out reservation was attempted, when the drayage company was contacted, when the dispatch confirmation was received, and whether there was any information on terminal congestion. This helps determine whether the problem could have been avoided by earlier arrangements or if external factors were the primary cause.
Scenario 5: When Cargo Release is Delayed Due to Customs Inspection or Other Regulatory Checks
This refers to cases where cargo release is halted after import declaration due to customs inspection or the need for other regulatory checks such as food safety, plants, quarantine, Pharmaceuticals and Medical Devices Act (PMD Act), radio waves, and similar regulations. These situations cannot be freely avoided by the parties involved, but may sometimes stem from inadequate pre-declaration checks or incomplete documentation.
In these cases, it is necessary to confirm the dates of inspection notification, inspection, inspection completion, submission of additional documents, and the request and completion dates of other regulatory checks. This helps differentiate whether the delay was unavoidable under normal procedures or could have been prevented by prior thorough verification.
Scenario 6: Demurrage Occurs Due to Multiple Overlapping Causes
In practice, demurrage often arises from more than one cause. For example, the D/O processing might be delayed by one day, customs clearance confirmation could take additional time, and on top of that, delivery reservations might not have been secured. As a result, the free time period is exceeded.
In such cases, focusing only on the final cause of the delay could lead to incorrect decisions regarding cost responsibility. It is important to list out the timeline — from the arrival notice receipt date, D/O processing date, import declaration date, Import Permit date, delivery reservation date, drayage arrangement date, to the actual gate-out date — to clearly identify at which stage delays occurred and for how many days.
Summary
When receiving a demurrage claim, it is necessary to verify not only the claimed amount but also the start and end dates of the free time, the date demurrage began, the containers involved, and the actual CY gate-out date. Demurrage mainly relates to charges before CY gate-out and should be distinguished from detention fees, which arise from delays in returning empty containers after CY gate-out.
In practice, Import Permit issuance, D/O processing, cost settlement, confirmation of gate-out readiness, gate-out booking, drayage arrangement, and consignee acceptance are all checked as a package. Even if the Import Permit has been granted, failure to complete the D/O, insufficient gate-out bookings, vehicle shortages, or inability of the delivery destination to accept the cargo may prevent gate-out from CY.
When demurrage occurs, instead of deciding immediately who pays, it is important to chronologically organize the points at which gate-out was delayed, who confirmed what and when, and from what point gate-out was possible. This record forms the basis for determining cost liability, negotiating waivers or reductions, and explaining the situation to stakeholders.
