Key points
- Most demurrage originates in the receiving operation, not the port.
- Transit condition must be specified before loading, not managed after.
- Route disruption planning belongs in the procurement calendar.
Delay
Congestion, weather, equipment shortage, documentary holds and inspection all extend the chain. Planning from historical arrival data rather than quoted transit times is what makes a schedule survivable.
Damage and cost escalation
Moisture ingress, condensation, contamination from previous cargo, and physical damage in handling. Cost escalation follows from delay: demurrage, detention, storage and emergency inland transport.
What to verify
- Lead-time model built from actual arrival history
- Transit protection specified before loading
- Receiving and inland evacuation capacity confirmed before arrival
Risks to manage
- Demurrage from receiving-side bottlenecks
- Condensation damage on humid routes
- Documentary hold extending detention beyond free time
Common mistakes
- Planning to quoted transit times
- Booking arrival into a period with no receiving capacity
- Leaving transit protection to the supplier's standard practice
Frequently asked questions
Can demurrage be avoided entirely?
Not entirely, but most of it is controllable through realistic laytime, advance document readiness and confirmed discharge and evacuation capacity.
Who carries transit risk?
The Incoterm determines it. Insurance scope should be checked against that allocation rather than assumed.
Related reading
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