2017年4月20日星期四

How to Use Free Time to Reduce Detention and Demurrage

Free time is the most important cost factor in ocean shipping that most companies ignore.

How so? Not considering free time contributes to unnecessary detention and demurrage costs on up to 25% of ocean freight shipments, according to one of the world’s largest NVOCCs.

This growing issue affects logistics services providers and shippers alike, and is exasperated by the current state of the ocean cargo markets – specifically with regards to the ongoing problem of port congestion.


Free time is a contract line item just like any other fee or surcharge, yet it is rarely considered when making routing decisions. The reason is that it’s hidden in contracts and typically overlooked thanks to all the other everyday complexities of ocean freight rate management – like tracking updates to carrier surcharges and GRIs. Free time is seldom front of mind when ocean rates get calculated and shipments are booked. Yet few of the industry’s 1,300+ ocean surcharges that garner most of the attention can add 11% to a shipment’s cost each day.




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