»Issue 5, Volume 07                          www.scarbrough-intl.com                               » May 2007  

• Main Page
• Cover Story
• Scarbrough Services
• Business News
• Business Monitor
• Scarbrough News
 

BUSINESS NEWS

Attention:  Additional charges may be accruing on your import containers !!!!

It is important to remember that there are basically two types of releases, which must happen in order for your cargo to be released for delivery to you:  U.S. Customs & other government agency releases (USDA, FDA, EPA, etc.) and the steamship line or carrier release.  If for any reason one of these releases is delayed, it will mean added costs.

There are several different areas which are critical to eliminating any additional expenses for your import shipments:  

Pier / Terminal Storage – Containers arriving at the ports need to move quickly through various government agencies; all of which could designate exams either tailgate or intensive on your cargo.  Free time at the Piers / Terminals differ depending on the carrier, but, are generally 5-7 calendar days.  Within the allotted free time, cargo must be released by Customs and the original bills of lading and freight charges must be surrendered to the carrier.  Upon receipt of the proper releases, the designated trucker must pick up the container from the Pier / Terminal.  After free time expires, if the cargo is still awaiting either release, the charges could range from $25-$50 per day on the average, but could be as much as $100 per day for special equipment (flat racks, reefer cargo containers, open top containers, etc.).

Rail Storage – Containers arriving inland via the rail system have to go through the same release process as containers arriving at ocean piers and terminals.  Customs / Government Agencies must release the cargo, as well as, the steamship line or carrier.  Free time at the rail is limited to day of notification + 2 days, excluding weekends.  (72 hours total – maximum).  After the free time expires, the charges generally range from $50 per day to $100 per day depending on how long the cargo has been sitting at the rail ramp.  Once storage starts, weekends are also chargeable.

Per Diem – This is often referred to as “container storage” or “renting” the container.  These charges will accrue if the container is not checked back into the depot for the steamship line within the given time frame.  (Time frames vary by carrier but are generally 3-7 days.).  When a container is pulled from the Pier / Terminal / Rail Ramp by a truck line, the empty container must be checked back into the depot within the carrier’s allotted time frame.  Per Diem charges have increased over the last few years to approx $45-$50 per day. 

In order to avoid storage on import containers all parties involved must work together and communicate, as well as, have all documentation filed in the right place at the right time with the right people.  We also need the complete cooperation of the U.S. Customs Service, the steamship line / carrier, and their supporting computer systems.  Electronic communications between the customs broker, the carrier and the U.S. Customs service are taking place simultaneously on every transaction. 

If you are having consistent problems with any of the above types of charges – please consider the below information: 

Documents from the shipper / bank / importer must be received by the U.S. Customs broker prior to arrival of the cargo at the Pier, Terminal, or Rail Ramp.  It is imperative that the U.S. Customs broker be able to pre-file your entry with the U.S. Customs Service and surrender your original bills of lading and freight payment to the carriers.  Make sure any time you have freight moving that the documents are a priority.     

If original bills of lading are required for release of cargo (and most of the time they are) keep track of them through your internal system.  Releases of the original bills of lading by the shipper to the importer generally have a strong connection to payment for the cargo itself.  Make sure your shippers are following your instructions for timely release of documentation. 

Scarbrough International, Ltd.’s policy for payment of these types of charges will be directly linked to your agreement to pay for them.  We will not guarantee charges without having a written guarantee from the importer for reimbursement of those charges.

-- Debbie Roberts, Dean of Scarbrough University

" 'Simply the Best', both personally and professionally is the cornerstone of our culture."                

Copyright © Scarbrough International, Ltd.