On September 1st, Worldwide Logistics will be introducing a 2% advance fee with a minimum $50 per transaction in order to cover any advances made on behalf of our clients.
These advances made on behalf of clients include items such as demurrage, per diem, storage, prepull, rail detention and other related charges that have become the daily norm for ocean, domestic and air shipments during these unprecedented times.
“The current global crisis has left us no other option. The frequency of cases where we need to make outlays on behalf of our clients has increased 10-fold in the current environment,” said Joe Monaghan, CEO and president of Worldwide Logistics Group. “We have resisted imposing any disbursement fees, but under the circumstances we have no choice but to follow what has ostensibly been an industry norm for years,” said Mr. Monaghan.
“At Worldwide Logistics Group, we work very hard at transparency in our fees and to keep them to a minimum. We always provide advance notice giving our clients the time needed to make necessary adjustments to orders and to communicate to their customers,” Mr. Monaghan further explained.
A Lesson on Demurrage
Demurrage is a charge applied to containers that left the port or rail yard longer than their allotted time. When containers are picked up late, the port charges a fee for each late container. The fee must be paid in advance before the container can be picked up once the fee is assessed.
Some of the causes are:
- Difficulty finding an available trucker
- Shortages of drivers
- Shortages of chassis
- Long lines of truckers waiting at gates
What is Per Diem?
Also knows as “detention,” a per diem charge is the fee that an ocean carrier charges for each day past the number of “free” days a container spends away from the port.
Some of the causes for per diem charges are:
- Containers that are not live unloaded and are kept past the allowed free time.
- Truckers having difficulty getting return appointment with the port
- Ports will not give an appointment for two weeks out to return containers, past the ocean carriers allowed free time. This is most common on west coast.
Our sales team will be reaching out to answer any questions or concerns, but please feel free to contact your representative for more information.