In the planning phase of a shipment, it is essential to know some details to better manage this process & above all to have a clear understanding of the expenses that you might incur.
In particular, there are possible costs that are unforeseeable at the time of the initial quotation which are indicated with particular technical terms. It is therefore essential to understand them to avoid surprises and to be prepared if you find yourself having to face them.
For example, these costs regard the timing of the collection of the goods, the return of the containers or the possible controls made on the goods and the documents: all fundamental phases in the shipping process and collection process of the goods which must be handled carefully.
1- Demurrages: these are additional costs incurred due to the delay in the collection of the goods from the port or terminal. When the goods are delivered, they must be collected within a specified time period, established by contract. If the collection is delayed beyond that time, the shipowner or terminal operator will charge a daily rate called “demurrage.” This cost is the responsibility of the client and increases as the delay in collecting the goods increases.
2- Detentions: unlike demurrages, these are charges that occur after the goods are collected from the port. These extra charges are applied if the client detains the containers beyond the allowed time period. In fact, the client has a fixed number of days (free or chargeable) to keep the containers before returning them. If this period is exceeded, daily fees called “detentions” are charged. Therefore, it is important to plan the return of the containers carefully to avoid incurring these additional charges.
3-Goods inspection: this refers to the need to inspect or check goods during the shipping process. In some cases, the customs authorities or other parties involved may require an in-depth visit or inspection of goods to ensure compliance with rules and regulations. This type of inspection may involve additional costs, such as the employment of specialized personnel or the use of specific equipment. It’s important to take these costs into account when planning your shipments.
4-Scanners: goods may need to be scanned using specialized equipment for security reasons or to check cargo details. This scanning process may incur extra costs that must be covered by the client. The fees for the use of scanners may vary depending on the size and complexity of the cargo.
5-Documentation control: this is a key part of the shipping process. The customs authorities and/or other agencies may require a thorough review of all documents related to the cargo and shipment, such as invoices, customs declarations, certificates of origin, and more. The verification and validation of these documents can incur extra costs, such as administrative fees or document processing fees. Therefore, it is important to make sure you have all the necessary and correct documents to avoid delays or unexpected extra costs.
These extra costs are at the expense and under the responsibility of the client, and are governed by the Incoterms® Rules.
We at Global Shipping can inform you about the inconveniences that may arise during your shipment.