Vessel Demurrage (The Usual Suspect)
This is the classic case: a ship stays beyond its agreed laytime, and fees kick in—defined in your charter party and charged by the hour or day.
But vessel demurrage is only part of the equation. Your exposure often extends long past the port.
ISO Tank Demurrage
Used to transport bulk liquids via ship, rail, and truck, ISO tanks are versatile—and vulnerable to delays.
Demurrage triggers include:
- Product offloading delays
- Receiving terminal congestion
- Customs/documentation issues
- Poor coordination between parties
Cost Warning: Fees are charged per day per tank. Multiply that by a fleet, and the cost adds up fast.
Rail Demurrage
Railroads impose demurrage to keep cargo flowing. Charges apply when railcars linger at origin or destination terminals beyond their free time.
Common causes:
- Incomplete paperwork
- Late cargo readiness
- Short-staffed unloading crews
- Weather delays
Rates vary by carrier and are typically assessed per railcar, per day.
Truck Demurrage (also known as Detention)
In trucking, the term “detention” is used instead of demurrage—but the outcome is the same: a fee when a driver is held past the allotted free time, typically 1–2 hours.
Why it matters:
- Disrupts driver schedules
- Increases freight rates
- Damages carrier relationships
Why These Hidden Demurrage Charges Matter
These costs may not be spelled out in your charter party—but they absolutely show up on your bottom line.
Companies with tight margins or complex supply chains must track:
- ISO tank fees tied to terminal congestion
- Railcar storage and delays during peak season
- Truck detention charges across domestic distribution
When you account for all forms of demurrage, you can:
- Strengthen contract terms
- Reduce avoidable logistics costs
- Minimize disputes and inefficiencies
- Improve cost control across the entire supply chain
Take Control of Demurrage—Across Every Mode
If demurrage is a hefty line item in your budget, it doesn’t have to stay that way. Haugen Consulting offers full-service demurrage management across vessels, ISO tanks, rail, and trucking. Our services can include scheduling support to help reduce delays and avoid unnecessary charges.
Schedule a call today to find out how we can help you turn demurrage from a recurring cost into a controlled, strategic advantage.
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