One significant tariff that has left consignees bothered with payment repeat per importation is nothing but a trade storage tariff. The latter being a local charge aside shipping has been a huge concern, yet an indispensable tariff because trade is typically handled and stored at the destination before delivery.
This is no surprise noting a good number of concerned consignees precisely citizen returnees and others find it difficult to understand why they’re billed the subject tariff. Although, we might point at ignorance as a root course but totally out of the question. Judging by experience, shippers often strive to keep things in balance by asking their clients to take delivery of their shipped trade at the destination without informing them of the delivery requirement and likely expectations.
Meanwhile, aside mode of transport, it should be borne in mind that trades are meant to be stored at the destination even as we focus on sea-borne trade. However, shipment storage varies based on their nature, whether wet or dry cargo. Consequently, operational cost incurred per shipment due to tasks carried out to have each trade stored brings about the subject bill.
Tariffs aren’t limited to freight rates and shipping tariffs, but also storage, and this refers to tariffs billed by the operators of terminals, sheds, warehouses, and ports based on the period by which a storage facility and equipment is used per trade. Since trades are unique, shipment storage is, in turn, applicable based on the nature of the product, mode of transportation, and storage facility at the destination.
It’s significant to note here that, storage of shipments practically differs by trade category (wet or dry cargo) irrespective of volume, with some needing additional manpower and equipment due to their delicate nature. Yet, the environment also plays a significant role in the storage of trade.
Now, let’s put things nicely down as we double down to drive our point home. Hence, the subject tariff for seaborne trade practically cut across containerized shipments, loose cargo, roll-on roll-out (wheeled goods), and energy products (wet).
Trade storage tariffs for containerized shipments (refrigerated products inclusive) are billed based on the dimension and equipment used for the handling and the storage unit according to the port or terminal billing model noting that such trade storage units are economic zones, however, storage is calculated daily. The same billing format also applies to loose cargo stored in sheds and warehouses, not to exclude roll-on roll-out goods. Thus, charges are obtained based on the following factors:
- Handling/ Stevedoring Service: This bill is obtained per trade based on operational services carried out by field staff (laborers) such as lifting and repackaging or palletizing of items.
- Equipment Use and Duration: A tariff that is determined based on the equipment type used for the unloading and transfer of imported shipments, taking into account during which it was used per trade.
- Storage Duration and Plant Hire: This is widely used for loose shipments stored or to be stored in sheds or warehouses, its unloading and loading will require the use of plants such as forklifts.
- Shed/ Warehouse Storage: Solely deployed for shipments stored in an enclosed facility such as sheds, primarily for loose shipments. Trade storage tariffs for this type of shipment are predominantly billed based on the terms of service offered and agreed upon by the facility operator and a shipping company.
In practice, storage-related tariffs for dry cargo shipments are structured in three (3) phases. Firstly; free days, secondly; the first 7 days or 14 days, then the tariff after the second phase for the specific period it’s been billed, payable in local tariff.
In another dimension, it will interest you to know that energy trades also attract storage charges, which are dependent on the nature or type of the energy product. LNG (liquefied natural gas) and other energy products that are stored underground or in tank farms are billed based on cubic meters or volume. Except the subject facility is designed as a retain and resale facility, in another ward, owned and operated by large energy markets.
Lastly, all storage charges for seaborne trade are payable in local tariff, while it’s also fair to note that the operator of these facilities (ports, terminal, shed, or warehouse) are regulated by states. However, the subject tariff is billed and paid locally based on the points highlighted earlier. In continuation of this, we will be discussing in detail why shippers and shipping companies bill consignees independently.
- Did you find this helpful, leave your comment!