Storage charges are fees applied when cargo, containers, or goods remain at a port, terminal, warehouse, or storage facility beyond the allowed free time. These charges are usually billed daily and are meant to encourage timely pickup or movement of cargo. In shipping, storage charges are different from demurrage and detention: storage relates to space used at a facility, demurrage usually relates to containers staying too long at a terminal, and detention applies when equipment is kept too long outside the terminal. They can escalate quickly if customs clearance or pickup is delayed. If storage fees stay unpaid, the provider may exercise a carrier’s lien and hold the cargo until the charges are settled.
Where Storage Charges Apply
- Port terminal: assessed by the terminal operator on containers not picked up within free time
- CFS: assessed on LCL cargo not picked up within the free days after the container is stripped
- Bonded warehouse: assessed on goods stored beyond agreed terms
- Airport cargo terminal: assessed on air freight not collected within free storage
Begin customs clearance as soon as the vessel arrives and coordinate with your drayage company to pick up cargo promptly to minimize storage charges.
Related terms: Last Free Day.
