In maritime shipping costs, besides the freight charges, a series of expenses related to "containers" also constitute a significant proportion that should not be underestimated. What are the costs associated with containers?
Dropping Charge
When a container arrives at the port but the terminal isn't open to receive containers, it can't be offloaded. As the container cannot stay on the carrier indefinitely while other containers need to be transported, it gets dropped off at a location until the port opens. This incurs a dropping charge.
Advance Lifting Charge
Advance lifting typically occurs in exceptional situations where a container needs to be lifted before the regular lifting date to obtain a container number or for filing manifest or other documentation. The cost incurred during this time is referred to as the advance lifting charge.
Difference between Dropping and Advance Lifting
1. Scope:
Advance lifting is usually applied for goods heading to the United States.
Dropping charges are incurred during the export process.
2. Reason for Application:
The advance lifting charge is due to the Anti-Terrorist Measures (AMS). There might be restrictions due to the AMS cutoff date, where container loading might happen after the AMS cutoff, yet the container number is required during manifest submission. Hence, the container needs to be lifted and stored in the yard.
Dropping charges occur when a container needs to enter the port, but due to reasons involving the port or the shipping company, the port is not yet open. Consequently, carriers drop off the container until the port becomes accessible, resulting in charges.
Storage Charge
To expedite container circulation and avoid congestion, shipping companies establish a free usage period for containers. During this period, utilizing the container for cargo incurs no charges. However, exceeding this period results in fixed fees known as "storage charges." These charges are calculated on a daily basis, typically around 7 days for exports and might arise in imports within several days of the ship's arrival.
Pre-Port Entry Fee
Incurred when containers are loaded but the ship's container operation hasn't commenced yet, preventing the container from entering the port. In certain cases, a fee is charged for early entry permission.
Selection between Advance Lifting and Dropping Charges
Dropping charges vary based on carrier policies and peak periods. Advance lifting charges are relatively fixed and typically cheaper than dropping charges. However, not all ports permit advance lifting. From a safety perspective, prioritizing advance lifting helps avoid unexpected events the next day, ensuring higher safety.
Additionally, there are:
1. Container lifting fees: Charges for lifting containers from terminals to customs for inspection.
2. Loading fees: Charges for transporting containers after customs clearance for transportation.
3. Empty return fees: Charges for returning empty containers after unloading imported cargo and vice versa for exports.
There are numerous other charges related to containers. Neglecting any of these might lead to additional expenses. Regardless, understanding these fees beforehand is crucial to ensure smooth container shipments, avoiding additional costs and minimizing overall expenses.
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