The choice of a sourcing agent is critical. A trustworthy sourcing agent can open up lucrative opportunities, mitigate risks associated with international trade, and contribute significantly to your business’s bottom line. On the other hand, a less reliable agent could lead to substandard products, supply chain inefficiencies, and even legal complications.Read More
Find easy-to-understand explanations of the most common freight forwarding and shipment terms
Demurrage fees are fees charged to containers, ships, and other vessels when they remain in the port longer than their allotted free time, or past the Last Free Day (LFD). For example, if a shipping vessel is scheduled to stay in a particular port for two days but remains there for four days due to unforeseen circumstances, then demurrage fees will be applied.
The demurrage usually applies a penalty rate per container per day. To calculate demurrage fees, the following formula can be used: Demurrage Fee = Number of Days Late x Penalty Rate Per Day.