First thing that every importer worries about is cost escalation and cost escalation is mainly result of uncontrolled demurrage and detention charges.
It therefore becomes important to know how to import with "0' demurrage & '0' detention charges.
Let us understand what are the cost components of port charges.
PORT CHARGES
Charges at the port of discharge are of two types:
- Carrier charges and
- Warehouse charges
Without touching the question of freight forwarding and custom clearance, demurrage and detention basically refers to only above two charges.
Carrier charges
Shipping Line agents make huge profits as detention charges if the importers bring in goods as FULL CONTAINER LOAD (FCL) and they do not return empty container back to liners because as soon as Free Period is over the charges, in the name of detention charges, goes so high that it defies ISRO's rocketry.
Liners charge like there is no tomorrow. There is no contract between the Liners and Importers but making full use of Importer's ignorance the Shipping Lines fleece the Importers in the name of Detention Charges.
Importers, literally, are at the mercy of Carriers because unless the importers pay up 100% of container detention charges the carriers hold the Importers to ransom.
WAREHOUSE CHARGES
Whereas, importers have a say in choosing the warehouse, also known as CFS, they hardly ever make a choice of it.
The liners and their agents make use of importers' ignorance and fleece money as they please in the name of warehouse charges.
Many freight forwarders also use the lacunae to siphon off huge money from the importers. Like Shipping Lines, these warehousing companies bleed the Importers if there is delay in delivery.
Moreover, they give only one day to take the delivery out.
HOW TO IMPORT with ‘0’ DEMURRAGE & ‘0’ DETENTION
Instead of worrying about HOW TO IMPORT WITH ‘0’ DEMURRAGE & ‘0’ DETENTION charges one should be vigilant about the charges that are being rampantly billed to importers by the shipping agents, co-loaders and CFS.
The entire industry works like a cartel, there is no statutory body which can take care of Importers' concern.
Under such helpless circumstances, for an importer the only option remains is to minimising the detention and demurrage charges.
minimising the detention and demurrage charges
Doing proper preparation before import is what an importer can practically do so that there is minimum delay in taking delivery after the arrival of cargo
However, this is easier said than done because only the experienced importers know about the extent of charges and complicated billing terminologies.
Therefore, we provide consultancy to Importers in planning their import shipments & also manage their imports on turnkey basis.
preparation before import
An importer must understanding everything end-to-end before import. Which basically means:
- understanding costs involved in logistics,
- documents required for import custom clearance,
- custom duty and taxes,
- kyc documents,
- other government department requirements
If there is even an iota of doubt about any of the above then it is better to presume that cost escalation is most likely to happen.
Relying on others instead of importing directly
Many end users, instead of directly importing, appoint an importer. That is a good way of ensuring that cost is controlled.
Whereas, appointing someone else to import is great if import-item is required not so often or quantity is miniscule but for frequent requirements and large scale requirement, importing directly is a better option and more so because importing directly had never been easier than present times.