How Businesses Can Reduce Demurrage and Detention Costs in Singapore
When shipping goods through Singapore ports, one of the busiest in the world, many businesses face extra costs they didn’t plan for. Two of the most common extra costs are demurrage and detention charges. These fees can mount up quickly and negatively impact your shipping budget.
The good news is that with some careful planning and the right support, you can avoid or reduce these charges. Let’s look at what they mean and the steps you can take.
What Are Demurrage and Detention Charges?
Demurrage Charges
This is a fee you pay when your container stays too long inside the port after it arrives. Ports give you a few days of “free time” to clear your cargo. If you don’t move your goods within that time, the port starts charging you daily.
Detention Charges
This is the fee you pay the shipping company if you remove the container from the port but fail to return it on schedule. For example, if you use the container to unload goods at your warehouse and keep it longer than the allowed days, you’ll be charged.
In short:
Demurrage = Container stuck inside the port.
Detention = Container kept outside the port for too long.
Why Are These Charges So Common in Singapore?
Singapore handles millions of containers every year. To keep things moving smoothly, the port has strict rules about time limits. Delays often happen because of:
- Missing or late documents
- Slow customs clearance
- Not booking transport trucks on time
- Miscommunication between shipping companies and importers
These small mistakes often lead to big costs.
How to Avoid Demurrage and Detention Charges
Here are simple steps you can follow:
1. Prepare Your Documents in Advance
Always have invoices, permits, and shipping papers ready before the vessel arrives. A missing document can result in delays at customs and lead to demurrage charges.
2. Track Your Container Regularly
Use a container tracking system to know when your cargo reaches Singapore. Early updates give you enough time to arrange trucks and warehouse space.
3. Know Your Free Time Limits
Ask your shipping line: How many free days do I get at the port and outside the port? If you anticipate a delay, you can negotiate for extra free days.
4. Book Transport Early
Trucks in Singapore are always in demand. Book them before your cargo arrives. Your container will be picked up and returned on schedule if you choose a reputable carrier.
5. Clear Customs Quickly
Submit all documents to Singapore Customs as early as possible. If available, use pre-clearance so the container can move as soon as it lands.
6. Work With a Trusted Logistics Partner
A logistics provider like Global Lacis Logistics handles all coordination between shipping lines, customs, transporters, and warehouses. Our team tracks your shipment from start to finish so you don’t pay unnecessary penalties.
Why Avoiding These Charges Matters
- Saves money: You don’t waste money on daily fees.
- Faster delivery: Your cargo moves quickly through the port.
- Reduced stress: You are not concerned about delays.
- Better business reputation: Shipping lines and customers trust you more when you deliver on time.
Final Thoughts
Demurrage and detention charges are common but avoidable in Singapore ports. With early planning, proper tracking, and help from a professional logistics partner like Global Lacis Logistics, you can move your cargo smoothly and save costs.
👉 Want to make your shipping process easier? Contact Global Lacis Logistics today – we’ll help you avoid penalties and ensure your cargo moves on time.
