Unbilled Demurrage and Detention Charges
Definition
Complex demurrage and detention tariff structures vary significantly by shipping line, container type (GP/HC, reefer, other), and port location. Free time periods range from 3-14 days for demurrage and 7-14 days for detention. When extended free time is granted, calculations do not revert to standard rates automatically, creating invoicing complexity. Manual processes fail to track these nuances, resulting in undercharging importers or overcharging exporters.
Key Findings
- Financial Impact: AUD $100-$507 per container per day (tiered). Example: A 40ft reefer container delayed 15 days at a major port could incur AUD $2,700+ (7 days @ $270 + 8 days @ $440). For a mid-sized importer with 50 delayed containers monthly: AUD $135,000-$255,000 annually in unrecovered or disputed charges.
- Frequency: Continuous; every container exceeding free time across all Australian ports
- Root Cause: Lack of unified tariff database across carriers; manual day counting; confusion over free time start date (Day 1 of discharge vs. Day 1 of availability) per carrier policy; extended free time agreements not systematically tracked in billing systems
Why This Matters
The Pitch: Maritime operators in Australia waste AUD $50,000-$500,000+ annually per medium-sized importer due to demurrage/detention miscalculation and unbilled extended free time arrangements. Automation of tariff tracking and free day calculation eliminates invoice leakage.
Affected Stakeholders
Import/Export Managers, Freight Forwarders, Customs Brokers, Container Terminal Operators, Billing Teams
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Evidence Sources:
Related Business Risks
Operational Demurrage and Detention Cost Overruns
ACCC Scrutiny and Dispute Risk on Demurrage/Detention Practices
Container Free Time Miscalculation and Tariff Selection Errors
Verlorene GST und Fuel Tax Credits durch falsche Lieferantenwahl
MARPOL und ISO-Konformitätsverletzungen in Bunker-Lieferketten
Ungültige Bunker-Lieferverträge und fehlende Versicherungsdeckung
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