In this guest post on the Freightos blog, we share our insights on the recent increase in demurrage and detention charges, and how digital cargo tracking platforms can help avoid or manage them.
Forwarders, shippers, and importers have long complained about unreasonable demurrage & detention charges. However, the issue has ballooned in recent months as the coronavirus pandemic is heavily distorting cargo flows.
The combination of blanked sailings due to a lack of critical mass of cargo, and social lockdowns which slow down the ports’ ability to unload and clear containers, has resulted in exorbitant demurrage & detention charges. Containers are either stuck at the terminals or it is impossible to return empty containers due to the already congested terminal.