How to avoid demurrage fees and lower your container shipping cost

THERE is no question that shipping containers can be a great way to keep the goods moving and they can be helpful in many different applications but they also have a tendency to get expensive very quickly if you’re not careful. One of the most expensive is something known as demurrage fees. These fees occur when a shipping container sits at a port or storage area for longer than it should. To fight these costs and to stay away from this expense is you have to be smart with your containers. Yuetong can ease these troubles for you and save your shipping container cost. 

What are some of the best approaches to reduce their shipping costs? 

You can bring down shipping costs by giving some thought to your use of containers. First, planning is super important. Be sure you know when your goods will arrive and how long they’ll sit at port. If you get everything ready in time, you won’t have to pay those late fees. Also, do your best to pack those small shipping containers well. The more you can cram into one container, the less you will have to spend on shipping. Occasionally it’s worth double-checking to see if it’s cheaper to send a single larger container, rather than shipping two smaller ones. And don’t forget to factor in the route. Some shipping options could be longer but cost less. Keep in mind that, as always, prices and destinations are subject to availability. It’s similar to comparison-shopping for the best price on a toy or game. Finally, watch the shipping schedules. By knowing when ships are headed out, you can get your stuff ready to hop on. This will allow you to avoid delays, and the demurrage charges that accompany them. 

Choosing the Correct Shipping Partner to Reduce Demurrage Costs

The right shipping partner is crucial if you want to save on demurrage fees. Shop for a company that boasts an excellent reputation within the shipping industry, such as Yuetong. They should be known for their trust and on time deliveries. When you pick a partner, ask them about it. A great shipping partner knows their ports and routes well. They will have experience preventing that downtime and ensuring you aren’t waiting for 40ft shipping container to take off. Communication is also key. Ensure that your shipping partner is easily accessible and answers all of your questions as fast as possible. If anything goes wrong, you should be able to speak with someone who can assist. Also, see if they provide tracking features. The fact that you can track exactly where your container is at any given time will help you plan accordingly and avoid unnecessary detention. Lastly, be sure to ask about their policy on demurrage fees. A good partner has clear parameters and may even advise you on how to not incur them. By selecting carefully, you can save a lot of money and keep your shipping costs to minimum. 

How to Cut Your Shipping Costs by Optimizing Your Supply Chain? 

To save on shipping, you need to make your supply chain work better. A supply chain refers to the way goods travel from their originating point in a factory to the store where it is bought, or into the home of a customer. One way to smooth your supply chain is to plan ahead. You should know when you need stuff and how you can get it. This prevents you from being stuck with delays and additional fees. For example, if you have an order delivered but no space to put it, you could be charged additional fees. Yuetong advises creating a schedule that lets you know when to order your alcohol and when to expect delivery. That way, you can prepare your space for the items. Yet another trick for lowering shipping costs is taking fewer steps to receive your products. Saving time and money is great if you can get your product from the factory straight to your store instead of making multiple stops along the way. You could also collaborate with your suppliers to determine the optimal routes for shipments. Which means that you are going to be looking for the quickest and cheapest ways to get your shit from here to there. Yuetong can help you to find these paths and ensure that everything goes well. Finally, don’t forget to communicate with every player on your supply chain, from supplier to customers. If everything is what it should be, there’s less opportunity for error or delay. Clear communication can help you avoid additional fees and keep your shipping budget low. 

What are some common Demurrage Oversights? 

Demurrage charges are additional fees you pay if your shipping containers linger at the port or terminal for too long. Lots of people who should know better unwittingly make mistakes that result in these charges, and it is important to be aware of them so you can stay away from them. One common oversight is failing to account for time to unload containers. If you anticipate unloading a container in one day but three days later are still at it, you will be charged for the extra days. Yuetong suggests inspecting the unloading-time structure and ensuring you have a sufficient number of workers on hand to assist. A second error is failure to examine the rules of the port. Various ports dictate how long you can house a container before paying additional fees. And if they don’t know the rules, you may wind up paying more than you expect. You should also ensure that all of your paperwork is arranged before the shipment arrives. If you’re missing documents, it may mean delays and extra fees. Yuetong recommends double-checking to ensure you have everything set up ahead of time before your shipment is scheduled to arrive. Lastly, there are some who take too long to retrieve their containers. If you’re aware the shipment has arrived, go pick it up at your earliest convenience. Laggards don’t want to deal with demurrage charges. By not making these mistakes, you can save money and continue to have your shipping costs low. 

How Can a Wholesale Buyer Save on the Shipping of Containers? 

There are so many tips on how wholesale buyers can save big on container shipping. For one thing, it can save you some cash. And the more items you order, the lower price per item possible. Yuetong suggests that you call ahead to plan your orders so you don’t bring home too little and get slapped with a higher rate. You'll also want to compare shipping options. There are various ways to ship, including by sea, air or truck. Shipping by sea is usually less expensive for big items, though it is also slower. If you have time to wait, this is a reasonable choice. Be certain that you compare prices and services prior to taking a shipping technique. Another suggestion is to have good relationship with your suppliers. If you have a strong relationship, they may give you better rates or advise on your opportunities to save money. Yuetong thinks that good communication with suppliers can help to get better deals. Not to mention using a freight forwarder. A freight forwarder is essentially a company that assists with shipping. They have learned the best methods of shipping items and can help you avoid penalties. And, save your shipping expenses. When you know what you’re spending, you can figure out how to spend a little less. Keep a record of your shipping costs and look for patterns, says Yuetong. When you see what routes and tactics you’re overspending on, you can always adjust. With these tips, wholesale buyers can alleviate costs and make shipping smoother.