Demurrage cost savings calculator

Demurrage charges cut into profits and indicate you could be getting goods where they need to be sooner. Real time transportation tracking tools like Beacon can help you gain the visibility needed to reduce demurrage charges and improve supply chain efficiency. Our free demurrage calculator will help you estimate potential cost savings from improved visibility.

Demurrage FAQs

What is a demurrage charge?

A demurrage charge is a punitive cost assessed to organisations when ocean freight containers have exceeded the allowable 'free days on quay' as contracted with an ocean carrier or forwarder. Demurrage charges are typically incurred on a per day basis.

How to calculate demurrage cost

Demurrage cost is calculated on a per container basis as follows:
(Total days on quay - contracted free days) x (per day demurrage charge)

How to reduce demurrage costs

Demurrage costs are most commonly incurred due to a lack of visibility into when freight is arriving at port. Investing in a platform that provides reliable, centralised visibility into container ETAs and that allows you to seamlessly share this information with hauliers and warehouses is one of the best ways to mitigate delays collecting goods at port (and the associated costs).

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