In the world of international shipping, air freight is one of the fastest and most reliable ways to move goods. However, one of the additional costs businesses must consider when shipping by air is the storage fee. These fees can quickly accumulate if cargo is not picked up promptly or if there are delays in customs clearance. For companies relying on air freight from China to Europe, understanding how storage fees work is essential for controlling costs and ensuring smooth logistics operations. This guide will explore the factors that influence storage fees, how to minimize them, and best practices for effective freight management.
1. What Are Storage Fees in Air Freight?
Storage fees in air freight refer to the charges incurred when cargo is stored at an airport or terminal beyond the free time allowed by the carrier or airport. These fees apply when cargo is left in the warehouse or transit area after the free time expires and are generally calculated on a per-day basis.
Key Terms:
- Demurrage: Charges for the prolonged stay of goods beyond the free time period, often due to delays in clearing customs.
- Detention: Fees applied when the consignee or shipper does not pick up goods in time, extending the storage period.
- Free Time: The period during which cargo can remain in the storage area without incurring additional costs. This time is typically set by the carrier or airport and is often between 48-72 hours.
- Free Time Extension: Some carriers may offer the possibility to extend free time for a higher fee, or in some cases, as part of a negotiated agreement.
2. How Much Do Storage Fees Cost?
Storage fees depend on a variety of factors, such as the airport location, cargo type, and the duration of storage. On average, standard storage fees range from €50 to €150 per day, but this can vary widely depending on the airport.
Example Rates:
- Standard Cargo: €50–€100 per day at major airports like London Heathrow (LHR) or Frankfurt Airport (FRA).
- Specialized Cargo (Perishables, Pharmaceuticals, etc.): €100–€250 per day, depending on the need for temperature-controlled environments.
- Hazardous Materials: Prices are higher due to the additional safety measures required for handling and storage.
3. Factors Affecting Storage Fees
Several factors can influence storage fees in air freight. These factors can often be anticipated and mitigated by understanding the underlying dynamics at play.
- Airports in major logistics hubs (e.g., Amsterdam Schiphol, Frankfurt) typically charge higher storage fees due to high cargo volumes and limited capacity. Smaller, regional airports may offer more competitive rates.
- Perishable Goods: Items like fruits, vegetables, and pharmaceuticals that need temperature-controlled environments will face higher storage charges due to the additional resources required.
- Oversized Cargo: Larger shipments often require more space and may incur additional handling and storage costs.
- Hazardous Materials: Such cargo requires specialized facilities and security, which significantly increases storage costs.
- The longer the cargo stays at the airport, the higher the storage fees. This is because most airports have limited capacity, and extended stays cause congestion, which impacts other shipments.
4. Air Freight Regulations and Their Impact on Storage Fees
Air freight regulations play a crucial role in determining how long goods can be stored and the associated fees. The following regulations and rules are important to understand when considering the costs of storage:
1⃣️International Air Transport Association (IATA) Regulations:
- IATA provides a framework of rules for air cargo transport, including recommendations on free time and storage charges. This organization influences the structure of storage charges and helps ensure standardized operations.
2⃣️European Union Customs Code:
- The EU Customs Code governs the movement of goods within the EU, including customs clearance processes. Delays in customs clearance can lead to extended storage times, and subsequently, higher storage fees.
- Customs Bond: In some cases, goods may be held in a customs bond warehouse, where storage fees are usually waived, but only if the goods are in compliance with customs regulations.
3⃣️National Customs Regulations:
- Every country has its own customs rules for air freight. These rules impact how quickly goods can clear customs and can directly affect how long they are stored at the airport. In countries with stricter controls, customs clearance may take longer, increasing storage costs.
5. How to Avoid or Minimize Storage Fees
Preventing or minimizing storage fees requires careful planning and efficient handling of shipments. Here are some actionable strategies to avoid unnecessary charges:
📍Plan Ahead:
- Accurate Documentation: Ensure all necessary paperwork (commercial invoices, certificates, import permits, etc.) is accurate and submitted on time to avoid customs clearance delays.
- Coordinate Pickup: Arrange for the timely pickup of your goods as soon as they arrive to prevent storage from accumulating.
📍Use Pre-clearance Services:
- Some carriers and freight forwarders offer pre-clearance services that allow you to clear customs before the cargo arrives, reducing potential delays once the cargo reaches its destination.
📍Understand and Negotiate Free Time:
- Many freight companies and airports offer extended free time for high-value shipments or regular customers. Discuss these options with your carrier to avoid paying extra charges.
6. Storage Fees vs. Air Freight Rates: How They Relate
Storage fees are an additional cost on top of the base air freight rates. With recent surges in air freight rates—especially after the pandemic—storage fees have become more significant as delays at major airports are more common.
📍Recent Trends:
- As of 2024, air freight rates from China to Europe have risen sharply, making timely cargo pickup more crucial. The higher the freight rate, the more important it is to ensure that storage costs are kept to a minimum to maintain profit margins.
📍Relationship Between Storage Fees and Air Freight Capacity:
- Limited air freight capacity often leads to delays, especially during peak seasons, which can extend the amount of time cargo is stored. Understanding this dynamic can help you plan your shipments accordingly and mitigate additional costs.
7. How to Handle Disputes Over Storage Charges
If you believe that your storage fees are higher than expected, there are steps you can take to dispute these charges.
Steps to Resolve Disputes:
- Review the Contract: Ensure that the terms in your contract specify clear free time and storage charge limits.
- Document the Delay: If delays are due to the carrier’s fault (e.g., missed flights, inefficient handling), gather documentation to support your case.
- Negotiate: In some cases, carriers may be open to negotiating the fees, especially if you have a long-standing business relationship.
8. Conclusion
Storage fees in air freight are an unavoidable but manageable cost. By understanding the factors influencing these fees, staying proactive with logistics planning, and implementing best practices for customs clearance and timely cargo pickup, businesses can reduce unnecessary expenses. As air freight rates continue to fluctuate, minimizing storage fees is an essential step in controlling overall shipping costs.
Request a Quote
Need a tailored solution for your shipping from China?
Let TJ China Freight Forwarder assist you with reliable, cost-effective service.
FAQ:
Q1.How much free time is typically given for air freight at airports?
Free time usually ranges from 48 to 72 hours, depending on the airport and cargo type.
Q2.Can storage fees be avoided completely?
Storage fees can be avoided by ensuring that customs clearance is done promptly and cargo is picked up on time.
Q3.Do I need insurance for goods that may be held in storage?
Yes, it’s advisable to have insurance for goods that might incur storage fees, particularly for high-value or perishable items.
Q4.What are the main customs clearance requirements to prevent storage delays?
Ensure that all paperwork, such as the commercial invoice, certificates of origin, and import licenses, is complete and accurate before shipment arrival.
Q5.What’s the difference between demurrage and detention?
Demurrage refers to the charges when cargo is delayed at a terminal, while detention applies to delays caused by the consignee not picking up the goods on time.