13 port charges for containers: Complete guide [+how to avoid]

Port charges for containers can increase the overall cost of shipping. This blog gives you detailed information on the 13 most common port charges you must know about and tips to avoid them. 

The shipping process is complex, with hidden charges that can quickly drive up costs. To avoid last-minute surprises, it’s crucial to understand port charges and how they impact your shipping expenses. Among them, demurrage and detention fees are the most significant, often leading to unexpected costs if not managed properly.

Read on to explore these port charges in detail. But if you’re already familiar with them and just need containers, use our public search to find available units and check current leasing rates for your route. Try it now!

What are port charges for containers?

Some port charges are fees shipping operators pay the port authorities for their services. Other port charges are penalties that you pay to the port authorities or the shipping lines. These are charged if shipments arrive early, late, or have last-minute changes in their route.

These charges increase the cost of shipping and oftentimes, affect the final price of the cargo being transported. 

While some port charges such as demurrage and detention can be avoided, others are fixed. These include terminal handling charges and goods dues. 

13 common types of port charges for containers 

Port charges are calculated based on several factors. Some charges consider the type of freight, how it’s packed, its weight, or how long it’s been held at the port. 

Many external factors also affect the port charges you’re paying. For example, during port congestion, containers take longer to unload; this can lead you to pay port storage charges, at no fault of yours. But if you’re aware beforehand of all the port charges, you can plan better and avoid them. 

To help you with that, here is a list of common port charges in shipping. 

Goods dues

Dues on goods, also known as wharfageWhat is Wharfage? A wharf is a man-made, fixed structure where the vessels can dock for safe loading and unloading of cargo. Wharfage refers to the fee for using the wharf (also called quay) to store ... More, are levied on all the goods that get loaded or unloaded from a vessel. They are also charged on goods that are transferred between ships.

The rates on these charges vary from port to port or terminal to terminal. But they are usually calculated depending on the weight, volume, or number of goods. The goods dues can also be set based on the nature of the cargo.

Take, for instance, liquids and dry cargo. The goods dues might apply here based on the volume of the shipment. Palletized goods might be charged based on their weight. Additional dues may be charged for dangerous goods. Customers pay these charges, not the shipping line.

Terminal handling charge

Terminal handling charge (THC) is another container charge at ports you can’t get around. As the name suggests, THC is a fee collected by terminal operators for loading, unloading, storage, movement, and maintenance of containers at a terminal, container freight station, or even at a wharf. 

Both ports where the cargo is loaded and discharged charge terminal handling fees.

If your containers only require transshipment, the port where that takes place charges THC. In this case, the shipping line pays the terminal handling charge directly. However, that is often not the case at the loading and discharging ports; the shipper and consigneeWhat is a consignee? When transporting freight (by ocean, air, or land), there are two parties involved — one who is shipping and the other who is receiving the freight. The recipient of the goods b... More of the cargo then decide who pays the THC.

Port storage charges

Port storage charges are fees paid for the space occupied by the container inside the terminal grounds, warehouse, or container yard. The storage period starts as soon as the containers enter the storage facility and ends when they leave the territory. 

However, the ports offer free days (3-7 days) for the containers to get loaded or unloaded and leave the terminal. If your containers leave the terminal before the free days get over, you can avoid paying port storage charges. But if your containers get stuck due to port delays, port congestion, or any other external factors, you’ll have to pay the container storage charges. 

Early arrival charge

Most ports work on strict schedules. Ports assign stack dates to each vessel and coordinate their activities based on them. If your containers arrive at the port before the stacks are open, it creates more work for the port authorities and you’ll end up paying early arrival fees for that.

Late arrival charge

Similar to the early arrival charge, there’s a late arrival fee. If your container arrives later than planned, the port might charge a late arrival fee. Especially, if the container is delayed long enough that the stacks it was scheduled for are already closed. Again, something that’ll bring more work to the port workers.

Lift-on/lift-off charge

This is a port charge added by the port for loading and unloading containers from the vessel. Some ports may apply an additional fee for this service.

Cancellation or amendment charge

Every industry imposes cancellation or amendment charges, especially for last-minute changes. In the shipping industry too, you’ll have to pay a cancellation fee if you want to cancel the arrival of your containers. Similarly, an amendment fee is charged if the route of your containers is changed to add or remove a port.

Container clearance charges

These fees are associated with customs clearance and inspections of imported or exported goods. They can include documentation charges, inspection fees, port fees for imports, and customs duties. To calculate these charges, you should check with your local Consulate, or Embassy of the destination country to find out what items in your shipment may be subject to duty and how much they cost.

Plugging charges 

Plugging charges refer to charges associated with plugging and unplugging refrigerated shipping containers. These containers transport temperature-sensitive cargo, such as pharmaceuticals, and are equipped with refrigeration units to maintain the desired temperature. Port authorities may impose plugging charges when connecting the refrigeration unit to a power source. These charges cover the cost of electricity and maintenance of the reefer container’s refrigeration at the port. 

Environmental fees 

Sustainable ports that are built to support environmental initiatives, charge a fee to comply with sustainability regulations, and address the environmental impact of port activities. Environment fees are designed to encourage sustainable logistics. 

Depot handling charges 

Depot handling charges are associated with the storage, maintenance, and management of shipping containers at depots. Container depots are facilities where containers are temporarily stored, serviced, and made ready for their next shipment. If you want to avoid paying container storage fees at ports, move your containers to depots and pay this charge instead. 

Demurrage charge

The most common port charge is the demurrage charge. The carrier levies this fee for delayed use of containers within the terminal. If your container doesn’t leave the terminal within the carrier-allotted free days, you’ll have to pay a demurrage charge. 

The demurrage charge is very similar to the port storage charge we discussed above. Sometimes, demurrage and storage charges overlap and you pay both. However, in some places, port storage charges and demurrage are recognized as the same.  A major difference between the two is that demurrage charges are paid directly to shipping lines and storage charges are collected by the terminal through shipping lines. 

Detention charge

Unlike demurrage, detention charges are added when a container is outside the port. If a carrier’s container is held for longer than the allowed free days, you will be charged with detention.

Detention fees are also charged when you export containers. Let’s say, you pick up an empty container to load it. But you don’t return it before the free days run out. Then, the carrier will impose detention charges. These charges are added to decrease the container’s turnaround time. 

Demurrage and detention charges together can increase the cost of your shipping significantly. But there are a few ways to avoid them.

How to avoid port charges for containers

Port charges can accumulate quickly making the entire shipping process costly. However, better planning, staying informed about port rules and regulations and timely movement of containers can help you keep costs low. 

Here are a few ways to avoid port charges:

Plan and negotiate in advance

Proper planning can not only reduce but also help you avoid paying most port charges. If you plan your shipments right, you can avoid paying late or early arrival charges. Moreover, if you find a way to reduce the transshipment of your containers, you can lower terminal handling charges as well. 

Negotiate free days

Negotiating extra free days when you lease containers is a great way to avoid paying D&D charges. The more free days you have, it’s more likely that your containers arrive and leave the terminal on time.

Monitor your containers

Another great way to plan your shipments is container tracking. This way, you’ll know if your containers are late or early and prepare accordingly. By monitoring your containers, you can reduce most port charges, from cancellation fees to D&D charges.

Manage your documents

Your goods can only successfully pass customs if your container clearance and shipping documentsWhat are shipping documents? In shipping, shipping documents are documents that provide information about the goods being shipped. They may include information such as the origin and destination of th... More are in order. Even if one document is missing, you can expect your container to remain in the terminal longer, incurring port storage and demurrage charges.

Use shipper-owned containers (SOCs)

Using shipper-owned containers (SOCs), instead of COCs, is a great way to avoid demurrage and detention charges. By using SOC, you’re essentially leasing it from the container owner. The owners also prefer this arrangement as you’re repositioning their containers and saving them money on storage and repositioning. It’s a win-win situation! 

But how do you connect with vetted SOC container owners? If you depend on traditional sourcing channels, you have to contact multiple container owners to find containers in your desired location. Then, compare the prices and negotiate deals individually. This manual process takes up a lot of your time waiting to finalize a deal. But if you automate your SOC booking, you can do all the above on a single platform in a faster and more efficient manner.

How xChange help freight forwarders reduce port storage fees?

Port storage charges can add up faster than you think, especially when unexpected delays keep your containers at the terminal beyond the agreed free days.

As a freight forwarder, you can reduce these costs by streamlining operations with online digital platforms like Container xChange.

On the xChange leasing platform, you can book SOC containers at attractive rates from 1700+ vetted companies in 2500+ locations worldwide. This means you’re no longer restricted by stricter deadlines that come with COCs and can eventually, avoid D&D charges that drive up port fees.

Many freight forwarders like you are already using our platform to gain instant access to container availability and price insights, secure containers in their preferred locations, and take control of their shipments — making operations more efficient.

So what are you waiting for? Join our leasing marketplace for FREE, enter your requirements, and get multiple offers from vetted companies. 

Save on port charges by leasing SOCs and boost your business profitability. Click on the banner below to get started!

Port charges for containers: Common FAQs