It is not unusual to have your cargo sent to the red channel to be inspected by customs authorities once it arrives at a Brazilian port. In case this happens, there are higher chances of the container having to stay at the port for longer than what was agreed with the carrier, and you may face demurrage charges.

Usually, the importer in charge of receiving the cargo is the one that takes responsibility for this fee. A daily demurrage fee in Brazil costs around US$ 90, however, depending on how long it takes until the goods are cleared, this value can become a huge financial loss. 

Fortunately, there are some strategies that can help you avoid facing demurrage charges in Brazil. Proper monitoring of the shipment, correct documentation, and clarification on the responsibilities of the importer/exporter help preventing unpleasant surprises such as the arrival of a high bill for something that isn’t part of the importer’s accountability.

On this post, we have selected some tips to help you avoid facing demurrage fees. Check it out!

Tips to avoid facing demurrage

1- Negotiation 

When contracting an international freight, importers usually wish to hire the cheapest freight option. However, this also means a smaller free time for them to empty the container. Whether it’s a prepaid or postpaid freight,  don’t forget to negotiate the longest possible free time with the shipowner.

2- Customs monitoring

It is essential to be aware of the situation of the customs area in the period of arrival of the cargo to its destination. Depending on the season, delays in the release of cargo may be more frequent and this directly affects the time it may take to return of the container.

On top of that, it is also important to keep precise control of the vessel mooring dates and container return deadlines. By doing so, you’ll be more likely to plan ahead and ensure the container gets returned within the correct timeframe.

3- Free time

Some shipowners start counting the free time from the arrival of the cargo to the destination while others only consider upon the cargo’s presence. In general, it is the competition that defines free time -which can vary depending on the traffic of origin and the daily value of demurrage.

When demurrage free periods are not included during the negotiation of the import freight, the shipowner generally applies their standard deadlines at the destination. In this scenario, the free time is usually about 7 to 10 days for dry loads and 2 to 5 days for refrigerated ones.

It is worth confirming, therefore, all the details so when the free time is up, you can analyze what is the most cost-effective action to take.

4- Shipment deunitization

The inspection conducted by Brazil’s Federal Revenues focuses on the merchandise rather than on the container itself. For this reason, the importer may ask for the container to be disunited (emptied) so that it can be returned to the shipowner even before the goods are cleared. In many cases, however, it is necessary to resort to judicial intervention in order for the request to be successful.

5- Care with the container

Before removing the container from the port terminal, it is important to ensure that everything is in order with it Make sure that the unit is delivered clean, without waste, and in the place indicated by the carrier as their deposit of empty containers. Delivering the container in poor conditions might also result in having to pay a fine or cleaning fee. 

We hope this article was useful for you to understand some ways to avoid facing demurrage on your import and export operations. Click here to check out another exclusive content with some tips to help boosting your freight forwarding sales!

Extra tip to create freight forwarding business opportunities

Besides following the tips to create new freight forwarding business opportunities that we already gave you, there are other things you can do to increase your profit. To find them out, all you have to do is download Twig’s e-Book “Practical Guide to Boost your Sales”. There you’ll discover some strategies you can use to have an amazing sales performance in the market. 

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