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Non-tariff fees such as demurrage and detention fees are usually claimed by the shipping lines, and they are a big problem if they are not managed well across the supply chain process Of course, all heads and managers need to develop strategies to prevent such charges are avoided proactively. It is important to understand what free time means in both the demurrage – the actual time spent in the terminal – and the detention charge – actual time spent outside the terminal on the owner’s account . This is a true testimony that importers should always practice early communication with the intended carriers, ensuring that customs clearances are made in advance and lastly ensuring Documentation is in order. Furthermore, the tracking in real-time and with the help of sophisticated computing programs, including FourKites, shows that several gaps in supply chain can be found and potentially improved. Apart from preventing one from incurring extra expenses, it is proactive means of working and promotes teamwork, efficiency, and effectiveness. It means that, when planning procurement and supply management, using technological tools, and communicating with suppliers and customers, businesses minimize the threat of delay and minimize costy charges, thus ensuring efficient and low-cost delivery.

Demurrage and detention charges are fines which customers are charged once their cargo or container remains behind at a particular port or terminal past the free time as stipulated by contractual agreements between the shipping companies. These charges are used to promote the faster turn around time for loading, unloading of the containers and quick circulation of the same in the ports. Demurrage mainly used when it takes a long time to collect the full containers but detention is for when it takes time to return the empty ones. These charges are normally borne by the cargo owner but may be provided for in the contract in any way. These charges are pegged on the time period of this delay, the agreed hourly rate and other issues such as type of cargo and, port tariffs among others. To avoid these fees, businesses need to map out strategies well, make sure that all legal documents are prepared appropriately, partner with local professionals who know the market well and bearmed with communication with all the involved parites throughout the exercise. Furthermore, the offers flexible contract terms so as to avoid being trapped into paying extras and also construct off site storage areas. This paper therefore concludes that, by adopting measures that would improve efficiency, applications of proper communication and planning, organizations can reduce the effects of demurrage and detention fees and improve the functionality of their shipping activities.

Demurrage and container detention charges are critical components of the shipping industry, aimed at ensuring the timely handling and return of containers. While they are often seen as penalties, their primary purpose is to maintain operational efficiency and prevent congestion at ports and terminals. Understanding the differences between these charges and their implications is crucial for businesses to manage costs effectively.

To minimize the impact of demurrage and detention fee charges, businesses should focus on efficient planning, accurate documentation, and leveraging technology for real-time tracking and management. By staying informed about industry regulations and adopting best practices, companies can reduce these charges, enhance their operational efficiency, and maintain a smooth and cost-effective supply chain.