Meaning
Financial penalties levied by ocean carriers apply when containerized resin shipments remain in a port or terminal beyond the allotted free time. A demurrage claim is issued to the importer or the freight forwarder once the grace period expires. It is calculated on a daily basis and increases in severity the longer the cargo stays on the dock.
The charge stops accumulating only after the container is picked up and moved out of the terminal.
Logistics Friction
Congestion at the port or a lack of available truck chassis often causes delays in moving polymer loads. These bottlenecks lead to a demurrage claim when the freight cannot be evacuated from the yard. Efficient scheduling of customs clearance is necessary to avoid these extra costs.
Cost Allocation
Responsibility for the payment depends on the incoterms used in the purchase agreement. If the resin was bought delivered at place, the supplier usually absorbs the risk associated with a demurrage claim. For free on board shipments, the buyer is liable for any charges incurred at the destination port.
Supply Chain
High storage fees can measurably impact the landed cost of the resin. Moulders avoid a demurrage claim by factoring these potential expenses into their inventory management strategy. Maintaining a buffer stock reduces the pressure to clear containers during periods of port labor unrest or severe weather.