🇮🇳India

Demurrage Charges ka Unexpected Liability

2 verified sources

Definition

Importers incur unexpected demurrage liability due to opaque free-period rules, Customs delays beyond their control, and manual billing reconciliation. Supreme Court has consistently ruled that port authorities retain collection rights regardless of fault.

Key Findings

  • Financial Impact: ₹5,000–₹20,000 per container per day (example: 2 containers × 3 days × ₹10,000/day = ₹60,000 single incident)
  • Frequency: Per shipment clearing delay; cumulative across multiple shipments monthly
  • Root Cause: Statutory demurrage authority vested in port authorities; no exemption for Customs-caused delays; manual free-period tracking

Why This Matters

The Pitch: Indian maritime importers face ₹5,000–₹20,000 per container per day in demurrage charges. Automation of free period tracking and charge accrual reduces disputed invoices and payment delays.

Affected Stakeholders

Importers, Shipping Lines, Port Authorities, Customs Brokers

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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

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