Import FCL Storage Charges — When They Arise
Interlink編集部Situations Where Storage Charges Occur
Storage charges occur when containers or cargo are held at terminals, CYs, warehouses, or similar locations beyond a certain period during import FCL shipments, resulting in additional storage-related fees.
In practice, these charges may be referred to as "storage," "storage fees," "terminal storage fees," "CY storage fees," "container detention fees," "warehouse storage fees," and other similar terms.
Like Demurrage and Detention, Storage is a cost issue related to delays in import FCL. However, it can be difficult to distinguish from Demurrage or Detention unless the specific location, applicable period, and the billing party are carefully confirmed.
When reviewing Storage charges, it is crucial not to rely solely on the fee name but to verify the storage location, the object being stored, the applicable time period, the billing source, and whether the cargo or container could have been removed.
Scope Covered in This Article
This article organizes the actual situations where Storage occurs, following the practical workflow of import FCL. It covers the differences from Demurrage and Detention, the start date for Storage calculation, D/O procedures, import customs clearance, customs inspections, other regulatory checks, pickup reservations, drayage arrangement, consignee refusal to accept, and the relationship with warehouse storage.
This article focuses on organizing the situations where Storage occurs. Details on Demurrage, Detention, FCL transport, responsibility allocation in integrated FCL transport, import customs clearance, customs inspections, D/O, warehouse storage, and cargo incidents are only outlined.
| Item | Content Covered in This Article | Detailed Topics Briefly Outlined Here |
|---|---|---|
| Basics of Storage | Organizes the costs incurred when containers or cargo are stored at terminals, CYs, warehouses, etc. | Rate tables by individual terminal or warehouse, contract terms, exemptions and reduction negotiations. |
| Differences from Demurrage | Organizes the differences between Demurrage and Storage when laden containers remain at CY or terminal. | Invoice scrutiny for Demurrage charges, Free Time conditions by shipping line or NVOCC. |
| Differences from Detention | Differentiates between costs for failing to return empty containers after CY gate-out and the costs for cargo remaining at storage locations. | Start date for Detention, return depots, empty container returns, EIR confirmation. |
| Delay in D/O Procedures | Organizes Storage occurrences related to D/O exchange, D/O-less shipments, surrender confirmation, and unsettled cost settlements. | Details of B/L and D/O nominative parties, D/O fees, Arrival Notice, and D/O-less processing. |
| Import Customs Clearance and Customs Inspections | Organizes situations where delays in Import Permit, customs inspections, and document checks delay cargo release. | Import declarations, tariff classification, taxable value, customs inspections, details of Import Permit. |
| Other Regulatory Checks | Organizes delays due to verification requirements for food, plants, animal products, cosmetics, medical devices, electrical appliances, hazardous materials, etc. | Individual systems such as the Food Sanitation Act, Pharmaceuticals and Medical Devices Act (PMD Act), plant quarantine, animal quarantine, chemical substance regulations, etc. |
| Pickup Reservations and Drayage Arrangements | Organizes situations where containers remain at storage locations despite Import Permit being granted, due to unavailable pickup reservations or vehicles. | Drayage fees, waiting charges, re-delivery costs, dispatch coordination during port congestion. |
| Consignee Refusal to Accept | Organizes continued storage situations caused by full consignee warehouse, insufficient acceptance reservations, or lack of devanning locations. | Consignee acceptance conditions, inland delivery, warehouse operations, devanning arrangements. |
| Storage Originating from Warehouse Storage | Organizes Storage related not only to CY or terminals but also due to cargo storage after devanning. | Warehouse contracts, storage rate tables, storage periods, inbound/outbound fees, sorting costs. |
| Scope of Freight Forwarder Involvement | Organizes verifications freight forwarders can assist with and cost responsibility judgments that should not be conclusively determined by them. | Disputing individual charges, reduction negotiations, contractual responsibility, damage compensation judgments. |
Why Storage Becomes an Issue
In import FCL, once the vessel arrives, containers are stored at the CY or terminal. After completing the D/O procedures, import customs clearance, gate-out reservation, and drayage arrangements, the loaded container can be moved out of the CY.
However, if a container remains at the terminal or CY for an extended period for any reason, it continues to occupy storage space. As a result, additional costs related to storage may be incurred as Storage charges.
It is easier to understand Storage charges as fees focusing on the prolonged use of storage areas such as terminals, CYs, and warehouses, rather than merely the delay in using the container itself.
Differences between Demurrage, Detention, and Storage
Storage charges are often confused with Demurrage and Detention fees. All three occur due to delays or retention in import FCL cargo handling, but they differ in terms of the location where charges arise, the charge targets, the billing party, and the charge period.
In simple terms, Demurrage is the cost incurred when a loaded container cannot be removed from the CY or terminal; Detention is the cost incurred when an empty container cannot be returned after leaving the CY; and Storage is the cost for cargo or containers remaining at terminals, CYs, warehouses, or other storage locations.
| Item | Demurrage | Detention | Storage | Practical Points to Confirm |
|---|---|---|---|---|
| Main Location of Occurrence | Within CY or terminal. | Delivery destination, warehouse, or pre-return storage location after CY gate-out. | Terminal, CY, CFS, warehouse, bonded area, storage facility. | Confirm exactly where the cargo or container remains. |
| Main Target | Loaded containers. | Empty containers after cargo unloading. | Containers, cargo, and storage space. | Delineate whether it is a loaded container, an empty container, or the cargo itself. |
| Typical Starting Point | After vessel discharge, or after free time ends. | CY gate-out date or container pickup date. | Storage start date, discharge date, in-gate date, or after free storage period ends. | Confirm from which date storage fees begin. |
| Typical Ending Point | The date the loaded container is removed from the CY. | The date the empty container is returned to the designated return location. | The date cargo or container is removed from the storage location. | Confirm the date when charges stop. |
| Main Billing Party | Shipping line, NVOCC, etc. | Shipping line, NVOCC, etc. | Terminal, CFS, warehouse, shipping line, NVOCC, freight forwarder, etc. | Identify who is billing and separate the nature of the charge accordingly. |
| Main Cause of Occurrence | D/O delay, customs clearance delay, insufficient pickup booking, delivery point refusal. | Delay in devanning, insufficient return booking, change in return location, depot congestion for returns. | Delay in pick-up, inspections, other regulatory checks, continued warehouse storage, delayed collection. | Check the causes in chronological order. |
| Points Prone to Disputes over Responsibility | Who is responsible for the inability to pick up the container from the CY. | Who is responsible for the failure to return the empty container. | Reasons for prolonged storage and on whose instruction or convenience the storage was extended. | Check not only the charge title but also the storage location, charge period, and cause. |
Common Misunderstandings
Regarding Storage charges, misunderstandings often arise such as "Storage is the same as Demurrage," "If the container is at the port, all charges are Demurrage," or "Warehouse storage fees are unrelated to FCL transportation."
| Misunderstanding | Actual Understanding | Possible Issues |
|---|---|---|
| Storage is the same as Demurrage | They can occur during the same detention period, but the invoicing party, applicable period, and nature of the charges may differ. | It becomes difficult to correctly separate costs that may appear as double billing. |
| If containers remain at the port, all charges are Demurrage | Storage charges by terminals or warehouses may arise separately from Demurrage billed by the shipping line or NVOCC. | There is a risk of misexplaining charges due to not confirming the invoicing party and applicable period. |
| Detention and Storage are the same | Detention mainly arises from delayed return of empty containers after CY gate-out, while Storage refers to charges for containers remaining at a storage location. | Confusion may occur between fees for delayed empty container returns and storage fees. |
| No Storage occurs after Import Permit is granted | Even after Import Permit, storage continues if yard release booking, drayage, or consignee acceptance at delivery location are not arranged. | Costs due to delayed removal after customs clearance may be overlooked. |
| Storage fees during customs inspection are always waived | Even when inspection is required, whether storage fees are waived depends on the facility, contracts, and billing conditions. | Proceeding on the assumption of exemption may lead to disputes over costs later. |
| Warehouse storage fees are unrelated to Storage charges | In practice, warehouse storage fees are sometimes explained as Storage charges. | Explaining CY storage and warehouse storage fees separately becomes difficult. |
| If the freight forwarder arranges the entire transport, Storage is the forwarder’s responsibility | If causes include documentation deficiencies, shipper-side acceptance issues, lack of required permits or documentation under other laws, or port-side circumstances, cost responsibility should be confirmed according to cause. | Responsibility for charges is decided without verifying the causes. |
| Storage fees can be checked after the invoice arrives | Storage fees increase daily, so it is necessary to check at the point where occurrence is expected. | Becoming aware only after fees have accumulated can result in significantly higher costs. |
Typical Flow When Storage Charges Occur
A typical situation where storage charges arise is when an import FCL loaded container remains at the terminal or CY for an extended period. After the vessel's arrival, if import procedures and arrangements for gate-out do not progress, the container continues to stay at the storage location, which may result in storage fees.
| Process | Usual Flow | Issues Leading to Storage | Practical Measures |
|---|---|---|---|
| Vessel Arrival & Discharge | Loaded containers are discharged from the vessel and stored at the CY or terminal. | From this point, the management of storage periods and free storage time begins. | Confirm the discharge date, storage start date, and free storage period. |
| D/O & Customs Preparation | Processing of D/O, import customs clearance, and other regulatory checks proceed. | Lack of documents, incomplete D/O, or delay in Import Permit prevent gate-out. | Check documents and D/O requirements before vessel arrival. |
| Gate-out Preparation | Arrange gate-out booking, drayage, and consignee acceptance. | Insufficient gate-out bookings, shortage of vehicles, or consignee refusal cause ongoing storage. | Coordinate gate-out and delivery arrangements concurrently with customs clearance schedule. |
| Inspection & Other Regulatory Checks | When customs inspection or other regulatory checks are required, inspections and confirmations are implemented. | Inspection scheduling, additional documentation requests, and waiting for approval extend storage duration. | Confirm inspection dates, gate-out feasibility, and conditions for incurring charges. |
| CY Gate-out & Warehouse Entry | Loaded containers are gate-out from the CY and delivered to consignee or warehouse. | If storage continues for cargo held at the warehouse after gate-out, warehouse storage charges arise. | Manage CY storage and warehouse storage separately. |
Common Practical Issues
When storage occurs, multiple processes are involved, including D/O, import customs clearance, inspection, compliance with other regulations, release reservations, drayage, acceptance at the delivery destination, and warehouse storage.
| Case | Common Issues | Documents to Check | Practical Measures |
|---|---|---|---|
| Delay in D/O Procedures | Cannot release cargo due to incomplete D/O exchange, D/O-less processing, surrender confirmation, or cost settlement. | Arrival Notice, B/L, D/O instructions, cost settlement records, release confirmation. | Confirm the date of D/O completion and the date release becomes possible. |
| Delay in Import Customs Clearance | Import Permit delay due to missing documents, tariff classification checks, price verification, or country of origin confirmation. | Invoice, packing list, B/L, declaration documents, inquiry records. | Prepare customs clearance documents before vessel arrival. |
| Storage Extension Due to Customs Inspection | Release delays caused by inspection designation, scheduling, unpacking, attendance, and restoration. | Inspection designation notice, inspection records, attendance records, photos, customs broker communications. | Confirm inspection schedule and conditions triggering storage charges simultaneously. |
| Storage Extension Due to Other Regulatory Confirmations | Extended verification for food, plants, animal products, cosmetics, medical devices, hazardous materials, etc. | Ingredient lists, usage explanations, manufacturer documents, permits, notification documents, test reports. | Confirm applicability and required documents for the items before import. |
| Unable to Secure Release Reservation | Terminal congestion or lack of reservation slots prevents pickup despite release eligibility. | Release reservation records, terminal notices, reservation screens, communications with freight forwarder. | Check release slots in parallel with customs clearance scheduling. |
| Unable to Secure Drayage Vehicle | Delays caused by vehicle or chassis shortages, consecutive holidays, or congestion after bad weather. | Dispatch records, responses from drayage companies, port congestion information, business day calendars. | Arrange early vehicle dispatch aligned with expected release availability. |
| Unavailability on Shipper or Delivery Destination Side | Cargo cannot be released due to full warehouses, no acceptance reservation, labor shortages, or lack of devanning space. | Delivery reservations, warehouse responses, acceptance conditions, workforce availability, delivery instructions. | Confirm delivery destination acceptance dates in advance. |
| Extended Warehouse Storage | Cargo remains for extended periods in the warehouse after CY gate-out and devanning, incurring warehouse storage fees. | Warehouse entry date, planned release date, storage fee rates, inventory details, delivery instructions. | Explain CY storage charges and warehouse storage charges separately. |
| Multiple Billing Sources | Separate invoices received from shipping lines/NVOCCs, terminals, warehouses, and freight forwarders. | Each invoice, applicable period, billing source, storage location, work details. | Organize by applicable period and location of occurrence rather than by cost item name. |
| Including Holidays and Consecutive Days Off | Storage continues as customs, terminals, drayage, and delivery destination operating days do not align. | Business calendars, free time periods, possible release dates, delivery destination business days. | Plan release and delivery early before and after holidays/long breaks. |
Delays in D/O Procedures
If D/O procedures are not completed, it may not be possible to gate out imported FCL from the CY. Delays in the arrival of the original B/L, confirmation of surrender status, settlement of charges, or oversight in checking the Arrival Notice may all delay the D/O process.
During this period, the container remains at the terminal or CY. If the free storage period or grace period is exceeded, not only Demurrage but also Storage charges could become an issue.
Delays in Import Customs Clearance
Storage fees are more likely to occur when import customs clearance is delayed. Delays in submitting the import declaration or obtaining the Import Permit can happen if documents such as the invoice, packing list, B/L, certificate of origin, and other regulatory documents are incomplete.
Additionally, verification of details like product name, quantity, weight, value, tariff classification, and origin may take extra time. If the container cannot be moved out of the CY until the Import Permit is granted, it may remain at the storage location and become subject to Storage charges.
Storage Due to Customs Inspection
If a customs inspection is required, Storage charges may occur. When designated for inspection, scheduling the inspection date, selecting the inspection location, unpacking, presence during inspection, repacking, and arranging shipment out become necessary.
While the inspection itself is a required procedure, the storage period may be extended during this time. If the inspection date cannot be scheduled promptly or if arranging shipment after inspection is delayed, Storage could result.
Storage Due to Compliance with Other Laws and Regulations
For food, plants, animal products, cosmetics, medical devices, electrical appliances, hazardous materials, and others, compliance with laws and regulations beyond customs may be required. Delays in filing notifications, obtaining permits, inspections, or certificate verifications can result in delays in Import Permit issuance or cargo release.
In such cases, containers or cargo may remain at the storage location, leading to Storage charges. Even if the freight forwarder arranges integrated transport, the importer may need to prepare the necessary information and documents required by other laws and regulations.
Delays in Gate-Out Reservations and Drayage Arrangements
Even if Import Permit and D/O procedures are completed, containers cannot be taken out from the CY without confirmed gate-out reservations or secured drayage vehicles. Congestion at the port, shortage of vehicles, periods before or after long holidays, bad weather, and terminal congestion can cause inability to gate-out containers on the desired date.
In such cases, although procedures allow for gate-out, containers remain at the storage location. As a result, Storage fees may be incurred.
Consignee’s Refusal to Accept Cargo
When the consignee is unable to pick up the container due to their circumstances, this can also lead to Storage charges. This may occur when the delivery warehouse is full, no acceptance reservation has been made, there are no workers available, the inspection personnel are absent, or there is no secured devanning area.
In such cases, even if customs clearance and D/O have been completed, the container cannot be gate-out from the CY. If the container remains at the terminal or CY, storage-related fees may be incurred.
Storage Charges Arising from Warehouse Storage
Storage charges may arise not only at port terminals but also in relation to warehouse storage. For example, when imported cargo is first moved into a freight forwarder’s designated warehouse and temporarily stored after devanning, warehouse storage fees may apply if the storage period exceeds a certain duration.
In this case, storage charges are often accounted for as fees related to the storage of cargo after devanning, rather than for the container itself. In FCL transport, it is important to separately consider storage at the CY, container usage, and warehouse storage after devanning.
Starting Date and Calculation of Storage Charges
The starting date and calculation method for storage charges vary depending on the terminal, warehouse, shipping line, NVOCC, and contract terms. It is necessary to confirm which date serves as the reference: vessel arrival date, discharge date, gate-in date, storage start date, or the end date of the free storage period.
It is also important to check whether weekends and holidays are included or if counting is based on business days, and whether the rates change depending on the number of days. Since storage charges tend to increase over time, it is advisable to verify the conditions that trigger storage fees at an early stage.
| Item to Check | Details to Confirm | Reference Documents | Notes |
|---|---|---|---|
| Starting Date | Vessel arrival date, discharge date, gate-in date, start of storage, end of free period. | Vessel schedule, discharge records, warehouse receipt records, storage fee terms. | May differ from the starting date for Demurrage charges. |
| Ending Date | CY gate-out date, cargo pickup date, warehouse release date, end of storage period. | Gate-out records, release records, Equipment Interchange Receipt (EIR), warehouse details. | Check when the charges stop accruing. |
| Counting Method | Calendar days or business days, inclusion of weekends and holidays. | Billing terms, terminal guidelines, warehouse contracts, quotation terms. | Avoid assuming that holidays can be excluded without confirmation. |
| Rate | Fixed rate, increasing rate by number of days, rates by size or cargo type. | Rate tables, quotations, invoices, contract terms. | Charges may increase sharply with long-term storage. |
| Billing Party | Terminal, CFS, warehouse, shipping line, NVOCC, freight forwarder, etc. | Invoices, detailed statements, payment requests, storage location records. | Distinguish the nature of charges by billing party. |
4-Point Judgment Checklist
When confirming Storage, organize not only the billed item name but also the storage location, applicable period, start date, billing party, and the reasons for any extended storage.
| Verification Stage | Party to Check With | Items to Confirm | Actions if Issues Arise |
|---|---|---|---|
| Before Vessel Arrival | Shipping Line, NVOCC, Freight Forwarder | Vessel ETA, unloading schedule, free storage period, conditions triggering Storage charges. | If conditions are unclear, check the Arrival Notice and related communications. |
| At D/O Processing | Shipping Line, NVOCC, Freight Forwarder | D/O exchange, D/O-less handling, cost settlement, release readiness. | Identify any incomplete conditions and share the risk of Storage charges. |
| At Import Customs Clearance | Importer, Customs Broker, Freight Forwarder | Import declaration, Import Permit, customs inquiries, document deficiencies, compliance with other regulations. | Obtain necessary documents promptly and confirm prospect for cargo release. |
| During Customs Inspection | Customs Broker, Importer, Inspection Authorities, Freight Forwarder | Inspection appointment date, schedule, location, unpacking and repacking work, expected release date. | Coordinate dispatch and release reservations to allow immediate pickup after inspection. |
| At Pickup Reservation | Terminal, Drayage Company, Freight Forwarder | Reservation slots, gate reception hours, available pickup dates, congestion status. | If reservation is not possible, keep records and confirm alternative dates. |
| At Drayage Arrangement | Drayage Company, Freight Forwarder, Cargo Owner | Vehicle, chassis, driver, consignee’s acceptance date. | If vehicle shortage is anticipated, consider early dispatch or adjust delivery dates. |
| At Consignee Acceptance Confirmation | Cargo Owner, Consignee, Warehouse, Drayage Company | Acceptance date, time, devanning location, workers, forklift availability. | If acceptance is not possible, share the risk of costs due to continued storage. |
| At Warehouse Delivery | Warehouse, Freight Forwarder, Cargo Owner | Storage date, free storage period, storage rate, expected outbound date, sorting schedule. | Manage warehouse Storage separately from port Storage. |
| Upon Invoice Reception | Billing Party, Freight Forwarder, Cargo Owner, Related Parties | Billing party, applicable period, storage location, start date, end date, rates. | Organize based on applicable period and storage location rather than invoice item name. |
| During Cost Responsibility Negotiations | Cargo Owner, Freight Forwarder, Customs Broker, Drayage Company, Shipping Line, NVOCC | Reasons for delayed storage, who knew what and when. | Create a chronological table and discuss cost responsibility by cause. |
Scope of Freight Forwarder Involvement
When a freight forwarder arranges import FCL door-to-door shipments, Storage is an important cost management item on the import side. Like Demurrage and Detention, Storage is an additional charge incurred due to delays or detention, and should be explained to the cargo owner in advance.
However, the freight forwarder is not in a position to guarantee customs decisions, other regulatory permits, cargo owner document preparation, delivery site acceptance capacity, terminal congestion, or drayage vehicle availability. The areas where support is feasible and those that should not be firmly asserted are organized below.
| Category | Supportable Tasks | Items Not to Be Firmly Asserted | Practical Handling |
|---|---|---|---|
| Cost Terms Confirmation | Confirm conditions for Storage occurrence, free storage period, starting date, and billing party. | Guarantee that all Storage fees will be exempted. | Share the confirmed conditions with the cargo owner as early as possible. |
| D/O and Customs Coordination | Track the progression of D/O processing, import customs clearance, and other regulatory checks. | Assert that customs inspection or other regulatory permits will always be completed within deadlines. | If delays are expected, communicate the risk of Storage charges. |
| Gate-out and Drayage Arrangement | Coordinate gate-out booking, vehicle dispatch, and consignee’s acceptance date. | Guarantee complete avoidance of port congestion or vehicle shortage. | Confirm compatible gate-out and delivery-ready dates. |
| Warehouse Storage | Confirm warehouse inbound date, free storage period, storage rate, and planned outbound date. | Accept long-term storage borne by the freight forwarder due to cargo owner’s or consignee’s convenience. | Record storage instructions and planned outbound schedule. |
| Billing Content Verification | Organize billing party, applicable period, storage location, rate, and date of occurrence. | Determine final cost responsibility before verifying the cause. | Cross-check invoices with chronological documents. |
| Explanation to Cargo Owner | Explain the differences between Demurrage, Detention, and Storage. | Judge responsibility or charge validity based solely on the fee names. | Explain separately by location of occurrence, applicable period, and billing party. |
Practical Scenarios
Here, we organize common situations where Storage occurs as scenarios following the flow of import FCL operations.
Scenario 1: Unable to Gate Out from CY Due to Incomplete D/O Processing
Even if the vessel has arrived and the container is stored in the CY, the actual loaded container may not be allowed to gate out from the CY unless the D/O exchange or D/O-less processing, surrender confirmation, and cost settlement are completed.
During this time, the container remains at the storage location, and if the free storage period is exceeded, Storage charges may be incurred. Since Demurrage could also become an issue during the same period, it is advisable to confirm the billing source and applicable period separately.
In practice, documents such as the Arrival Notice, B/L, D/O instruction, cost settlement record, D/O processing completion date, and gate-out authorization status are organized in chronological order.
Scenario 2: Delays in Gate Out Due to Customs Inspection
When designated for customs inspection, it is necessary to arrange the inspection schedule, transport the cargo to the inspection site, unpack, attend the inspection, and restore the cargo. If the inspection date cannot be secured immediately or if gate-out reservations cannot be made promptly after inspection, the storage period for the container or cargo extends.
The inspection itself is normally part of the import procedure, but whether Storage fees apply depends on the storage location and billing terms.
In practice, check the designated inspection date, actual inspection date, inspection completion date, scheduled gate-out, and the starting date for storage fees, ensuring arrangements are made for gate-out immediately after inspection.
Scenario 3: Unable to Reserve Gate Out or Drayage Even After Import Permit
Even if the Import Permit and D/O processing are complete, actual loaded containers may not be allowed to gate out from the CY if terminal gate-out reservations cannot be secured, drayage trucks or chassis are in short supply, or congestion occurs due to holidays or adverse weather at the port.
In such cases, although procedural requirements permit gate-out, the container remains at the storage site, potentially incurring Storage charges.
In practice, retain records of gate-out reservations, replies from drayage companies, terminal notices, and port congestion information to be able to explain the reasons for the failure to gate out.
Scenario 4: Storage Continues as Delivery Destination Cannot Accept Shipment
Even if customs clearance and D/O processing are complete, it may be impossible to gate out from the CY if the consignee’s warehouse is full, no receipt appointment has been made, workers or forklifts are lacking, or the devanning location is unavailable.
From the cargo owner’s perspective, this may appear as merely "not yet ready to accept," but since containers or cargo remain in storage, Storage charges may be incurred.
In practice, confirm the delivery destination’s acceptance dates, devanning location, and operational capacity before vessel arrival, and share potential cost risks early if acceptance is unlikely.
Scenario 5: Prolonged Warehouse Storage After CY Gate Out
Storage may also occur not only in terminals or CYs but during warehouse storage. For example, after import FCL cargo is gated out from the CY and devanned at the freight forwarder’s designated warehouse, prolonged storage may result from the cargo owner’s shipment instructions or consignee circumstances.
In this case, the subject is not the container but the devanned cargo itself. Separate from the CY storage charges, Storage fees may apply as warehouse storage charges.
In practice, confirm the warehouse entry date, free storage period, storage rate, expected shipment date, and delivery instructions, managing terminal Storage and warehouse Storage separately.
Practical Measures to Prevent Storage Charges
To prevent storage charges, it is important to proceed with import procedures and delivery arrangements before the vessel’s arrival. This includes early confirmation of the Arrival Notice, completion of D/O procedures, obtaining import documents, preparing customs clearance, checking compliance with other regulations, booking delivery, arranging drayage, and confirming acceptance by the consignee.
In particular, document deficiencies or the consignee’s inability to accept cargo may not be resolved by the freight forwarder alone. It is critical that the consignee and the freight forwarder share information promptly to prevent extended storage periods.
Points for Shippers to Note
For import FCL shipments, shippers need to prepare the cargo receiving system promptly after the cargo arrives at the port. If customs documents, documents required under other laws, delivery dates at the destination, unpacking locations, and storage locations are not confirmed in advance, containers or cargo could end up being stored for extended periods.
Additionally, storage charges do not arise simply because the cargo has not yet been collected. Rather, they occur due to the cargo being unable to be collected, released, or remaining stored as is. For import FCL, it is important to arrange unloading and receipt procedures before arrival.
Summary
Storage refers to additional storage-related charges incurred when containers or cargo in import FCL shipments remain at terminals, CYs, warehouses, or similar locations beyond a certain period.
Storage is often confused with Demurrage and Detention, so it is necessary to confirm the location of occurrence, the subject items, the relevant period, and the invoicing party. Generally, Demurrage applies mainly to charges when loaded containers cannot be moved out within the CY, Detention applies to charges when empty containers cannot be returned after gate-out from the CY, and Storage relates to charges based on cargo or containers remaining at the storage site.
To prevent Storage charges, it is important to verify the D/O, import customs clearance, customs inspections, compliance with other regulatory requirements, gate-out reservations, drayage arrangements, recipient acceptance, and warehouse storage plans before the vessel’s arrival, thereby avoiding prolonged retention of containers or cargo at storage locations.
When a freight forwarder arranges through transport, Storage is part of managing import-side delays and costs. When billed for Storage, do not judge solely by the charge name; instead, organize the storage location, applicable period, invoicing party, and delay causes chronologically.
