Do demurrage and detention fees apply to LCL shipments?

LCL (less than container load) shipments are a freight service where multiple shippers share space in a single container. LCL shipments are typically used for smaller shipments that would not fill an entire container independently. Because LCL shipments involve multiple shippers, demurrage and detention fees may apply.
Do demurrage and detention fees apply to LCL shipments?
Demurrage is a fee charged by the carrier for the storage of the container beyond the allotted period.Unsplash

By: Veselina Dzhingarova

LCL (less than container load) shipments are a freight service where multiple shippers share space in a single container. LCL shipments are typically used for smaller shipments that would not fill an entire container independently. Because LCL shipments involve multiple shippers, demurrage and detention fees may apply.

Demurrage is a fee charged by the carrier for the storage of the container beyond the allotted period. Detention is a fee charged by the carrier for using the container beyond the allotted period. These fees may be applied to LCL shipments if the container is not returned promptly. Shippers should check with their carriers to determine if these fees apply to their LCL shipments.

How can shippers avoid paying demurrage and detention shipments?

Choose a reliable carrier

When choosing a carrier, shippers should select one with a reputation for being reliable. A carrier that is known to be unreliable may cause delays that could lead to extra fees.

Coordinate shipments with other companies

If possible, shippers should coordinate their shipments with other companies. It will help to minimise the time the container is in use.

Ship early/ship late

Shippers can avoid fees by shipping their goods at either the beginning or end of the month. It will minimise the amount of time the container is in use.

Use a container that belongs to you

If you have enough to fill an entire container, shippers can avoid fees by shipping their products using their container.

Ship via air cargo

If time is of the essence, shippers can send their goods via air cargo. It will avoid the need to use a container and minimise the amount of time the goods are in transit.

Ship via rail

Shippers can also avoid fees by shipping their products via rail. This option is slower than shipping by air cargo, but it is often more economical.

Ship LCL instead of full container load (FCL)

If possible, shippers should consider shipping LCL instead of FCL. It will help to avoid demurrage and detention fees.

Use a freight forwarder

Freight forwarders can help shippers to avoid demurrage and detention fees. They can also assist with customs clearance and other shipping-related tasks.

These fees may be applied to LCL shipments if the container is not returned promptly.
These fees may be applied to LCL shipments if the container is not returned promptly.Unsplash

How does using LCL services minimise demurrage and detention fees?

LCL services involve multiple shipments

When using an LCL service, shippers share a container with other companies. It minimises the amount of time the container is in use, which can help avoid fees.

LCL services are available for smaller shipments

LCL services are available for smaller shipments, which means that the container is not filled. It also helps to avoid fees.

LCL services are often more economical than FCL services

LCL services are often more economical than FCL services. It can help to minimise the cost of shipping goods.

LCL services are available in more locations

LCL services are available in more locations than FCL services. It can help minimise the amount of time the goods are in transit.

You can use LCL services for time-sensitive shipments

You can use LCL services for time-sensitive shipments. It can help to avoid delays that could lead to extra fees.

What are the risks of using an LCL service?

Multiple shippers

When using an LCL service, shippers share a container with other companies. It can lead to delays if one of the other companies is late in returning the container.

Increased transit time

Because LCL shipments involve multiple shippers, the goods may take longer to reach their destination, which can be a problem if they are time-sensitive.

Limited shipping options

Because LCL services are available for smaller shipments, shippers may not be able to ship all of their goods using this service. It could lead to using an FCL service, which can be more expensive.

Limited availability

LCL services are available in more locations than FCL services. However, not all locations have LCL services available. If the destination is not one of these locations, shippers will need to use an FCL service.

Damage to goods

If the container is not packed correctly, there is a risk that the goods could be damaged during transit. It could lead to delays and extra costs.

Disclaimer: (This article is sponsored and includes some commercial links)

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