What Are Storage Charges in Shipping?
Storage charges in shipping are fees incurred when cargo is stored beyond the free time allowed at a terminal, warehouse, rail yard, or port. These charges are assessed by carriers, terminal operators, or warehousing facilities and are meant to compensate for space occupied by cargo that isn’t moving on schedule.
Storage charges are common in both import and export logistics and can quickly add up if not carefully managed.
Common Types of Storage Charges
- Port or Terminal Storage: Charged when a container remains at the port beyond the allowed free days
- Rail Storage: Applied when containers sit at an inland rail ramp after arrival
- Warehouse Storage: Fees for holding goods in a bonded or third-party warehouse
- Air Cargo Storage: Charged when freight isn’t picked up promptly from the airline’s cargo terminal
What Causes Storage Charges?
- Missed pickup or delivery appointments
- Customs delays or holds
- Rolled cargo or missed sailings
- Documentation or clearance issues
- Lack of available chassis or truck capacity
Example in Practice
An importer fails to retrieve their container from the Port of Savannah within the 5-day free period. Beginning on day 6, the port charges $150 per day in storage charges until the container is picked up.
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