The challenge of the rolled container is on the rise, along with extra surcharges following in its wake. Get an insight into what it means for your business and how xChange can help you curb extra costs.
In this blog you’ll learn:
· That a rolled container is a container that has not been loaded onto the vessel it was meant to sail on.
· Demurrage and detention charges, storage charges, terminal handling charges, rescheduling charges, and port congestion charges are all the surcharges related to a rolled container.
· There are expensive demurrage and detention charges applied on rolled containers.
· How xChange can help overcome the high costs of demurrage and detention charges by helping you lease one-way SOC containers.
Picture this: you’re struggling with containers stuck in the terminal for an infinitely long time because the ship it was supposed to be loaded on has overbooked cargo. Or there’s port congestion, customs issues, or vessel delays. So many things can unexpectedly make it impossible to stick to the agreed free days.
You’re helplessly waiting and stressing about your container delay. Just the thought of another day passing, where you have to pay demurrage and detention charges for all the delayed containers, is grating on your nerves.
The demurrage and detention charges are quickly adding up. So quickly, that you can end up with a bill that is higher than the worth of the containers themselves.
To skip this stress and money loss because of demurrage and detention, Container xChange is here to help you get started with SOC containers.
SOC containers can help you save big on high demurrage and detention charges which pile up due to containers being rolled. Our easy-to-use platform helps you lease SOC containers with a few simple steps. All you need to do is, choose “I want to lease containers”, select a pick-up location, and hit “search” to find available containers. Give it a go below.
What is a rolled container?
If you Google “rolled containers” you will find a plethora of articles on how this issue is plaguing the industry and costing a fortune. The longer your container stays inside a terminal without being loaded onto the vessel, the higher surcharges and the demurrage and detention charges you’ll have to incur. Let’s read on to find out more about the troubles of the rolled container.
If your container has been rolled, you can rest assured it hasn’t fallen off the ship – it never made it onto the ship in the first place. Confused? Let us walk you through it. When an ocean freight container is said to have been ‘rolled’, it means it has not been loaded onto the vessel it was meant to sail on. There are various reasons for a container getting rolled, including but not restricted to overbooking, vessel omissions (when a vessel skips the port) vessel weight issues, and more.
If your container gets rolled, the first thing to do is to find out why. In a case related to overbooking or vessel omission, there’s nothing you can do besides wait for the next sail. In a scenario, where the problem is with paperwork or customs inspection, make sure to solve the issue before the next sail to reduce further delays.
Here are a few facts about the rolled container.
Costs related to a rolled container
Let’s say you have a container full of denim that need to be shipped from the US to India. Once the denims have been loaded into the container and brought to the terminal to be stored, the only thing to do now is wait for the ship it’s scheduled to be on to arrive and pick up the container.
Once, it is waiting at the terminal the container storage charges start to add up. These charges cover the usage of space occupied by the container inside the terminal grounds, warehouse, or container yard. The storage period starts when the container enters the storage facility and ends when it’s taken out of the territory.
These charges are collected for full containers that haven’t been cleared for import. As well as for full containers that are waiting to be shipped. So, if your container is rolled you can expect surcharges here.
Next comes the terminal handling charges, the terminal authorities collect Terminal Handling Charges or fees/charges at different ports for the services they provide. These services can range from equipment handling, and positioning to the storage of containers. Here again, the charges go up if your container full of denim is sitting at the terminal for longer than required.
Then comes port congestion surcharges. Often a rolled container is a result of port congestions, in this case, unexpected delays call for additional shipping costs and surcharges for all stakeholders, including delay costs, demurrage, detention, and other surcharges depending on the situation.
Lastly comes the cost of rescheduling for another vessel to take your container on board.
The consequences of a rolled container
If your container gets rolled you can expect:
- Delayed shipments leading to unhappy customers.
- Additional expenses as mentioned above.
- Port congestion, delays, and scheduling problems.
One of the biggest consequences you’ll face when it comes to a rolled container is running into demurrage and detention charges. Demurrage and detention charges can prove to be very expensive. There have been instances where shippers have paid more than 20 times the value of a container in such fees.
Shipping lines should provide you with a reasonable free period during which no demurrage and detention charges apply. This free period is supposed to allow you a realistic time for:
- The loading and delivery of your container for export.
- The pick-up, unloading, and return of your empty container for import.
Here, as a shipper, you need to understand the difference between demurrage and storage charges. Demurrage charges are incurred for storing containers within the terminal beyond the free period, while storage charges apply for occupying space beyond this period at the storage facilities. It’s essential to understand this distinction for you to efficiently handle your shipments and avoid unnecessary costs.
From the day you exceed your number of free days, demurrage and detention charges will be added. They will be added daily until you return the containers to the allocated destination. In today’s world, these fines are common and can easily exceed $100 per container per day.
This leaves you in quite the pickle, doesn’t it? Don’t fret. We’re here to help.
Find out more about other port charges on our separate blog.
Calculating D&D charges on a rolled container
Are you wondering how much money you might spend on unforeseen extra fees? We’ll paint a picture for you. Let’s say your 20-foot export container was at the terminal for 15 days before it was shipped. You are allowed five days of free days and the shipping line’s demurrage tariff increases every seven days.
Here’s a simple formula to calculate how much you will pay:
Free days: 5 days
Time for which demurrage will be charged: 10 days
Day 6-12 demurrage per day: $50
Your total demurrage fee for days 6-12: $350
Day 13-19 demurrage per day: $75
Your total demurrage fee for days 13-15: $225
Total demurrage for 10 days: $575
Have we got your heart racing yet? Let’s get it back to beating normally, shall we?
How can you reduce D&D charges with a rolled container?
Enter SOC containers. They help you get around the extra demurrage and detention fees. How do they do that? SOCs have insurance against demurrage and detention costs. This allows you to not be subjected to these fees – which can quickly add up in the case of the rolled container. With SOC containers you lease the boxes of a container owner. Often moving containers from a surplus to a deficit area. Saving the container owner money on storage and repositioning and in turn, giving you more free days and low per diem charges on one-way leasing.
No carrier-owned containers. No hidden fees. No demurrage and detention charges.
Container xChange makes it easy for you to get started with SOC containers. On the xChange platform, you can find vetted SOC owners, who have boxes where you need them. All you have to do is choose “I want to lease containers”, select a pick-up location, and hit “search” to find available containers.
xChange helps eliminate D&D charges on the rolled container
On the xChange platform, you will find over 1000+ vetted companies. To ensure that xChange remains a safe and transparent platform where all members can make deals with confidence, we thoroughly vet all new members who join the platform. We have a mandatory vetting process during the onboarding at xChange, to ensure your safety first when it comes to leasing.
Now that you know you’re secured, all you have to do is type in the container type, and choose your pick-up location(s); a list of vetted certified partners will appear on your screen, you can then choose the one that best fits your requirement. Make your offer and start negotiations.
In addition, the leasing platform on xChange is commission-free and provides full-price transparency. This means that all the rates and fees that you see are stated upfront and are negotiable. This way, you can be sure what you are paying and why, before signing a deal.
Since a rolled container might be a consequence of bad circumstances that are out of your control, it can lead to expensive demurrage and detention charges. If you want to avoid these expenses, look no further than xChange, to experience a hassle-free one-way SOC leasing process, and get connected to certified partners to enjoy great deals.
Get started by clicking the banner below.
Rolled container: Common FAQs
Why do containers get rolled?
Containers get rolled for a myriad of reasons such as overbooking by the carrier, vessel skipping the port of loading, mechanical problems with the vessel, container exceeding the weight limit for a carrier, incorrect documentation, and customs dispute.
What is a rolled container?
A rolled container is a container that never made it onto the ship it was scheduled to be on. Basically, when a container is said to have been 'rolled', it means it has not been loaded onto the vessel it was meant to sail on.
What happens if your container is rolled?
If your container gets rolled because of a carrier issue, the carrier will automatically reschedule your container to the next departing vessel. If your container gets rolled due to missing paperwork or customs problems you will be charged for the rollover.
What to do if your container gets rolled?
In a scenario, if your container gets rolled, the first thing to do is to find out why. In the case related to overbooking or vessel omission, there’s nothing you can do besides wait for the next sail. On the other hand, if the problem is with paperwork or customs inspection, make sure to solve the issue before the next sail to reduce further delays.
