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If you work with sea freight, you've certainly heard of demurrage. You also know that it's best to avoid it. In this article, we'll explain its meaning and list the best practices for avoiding this charge.

Definition of derrumage

The word derrumage is of French origin and means stay. It is a daily fine imposed on importers who exceed the contracted period. This period varies according to the negotiation with the freight forwarder / shipowner. This charge is legally stipulated in the Brazilian Commercial Code. But in order to be applied, it must be provided for in the contract between importer and shipowner, in a specific clause. The charge is made in dollars and according to what was actually exceeded, i.e. it is proportional to the extra time used - days.

The most common causes of demurrage

There are several causes for this penalty to be charged, but the most common are:

- delay in the delivery of cargo;

- the ship waiting at the bar due to a lack of free berth;

- lack of customs clearance;

- Breakdown of shore cranes;

- lack of transport to receive or deliver the cargo to the shore.

Best practices for prevention

Have a structured compliance system that controls documentation, clearances, deadlines and the classification of goods. This avoids delays in clearing cargo and consequently the payment of fees such as demurrage. Another way to avoid demurrage is to work with your customs agent to remove the goods as quickly as possible. In the event of a delay in the release of the product, you can use a port terminal. Another solution is a container exchange, in which the importer buys a piece of equipment with the same specifications and passes it on to the shipowner - the name given to the carrier - within the agreed timeframe. Later, when he vacates the container, he sells it and recovers the purchase money. It is also possible to order the goods to be unloaded, as there are companies specialised in this and they cost less than the demurrage. Once the product(s) have been unloaded, the container is returned within the contracted period.

Conclusion

Through this article we have been able to highlight the importance of relying on the services of companies specialising in import and export for your operations to be successful.

Take control of this documentation and the entire import process by hiring our services.