What Is a Storage Fee?

In international trade, one of the most frequently used terms is storage service, referring to the process of holding and storing goods in areas under the control of the cargo owner. Accordingly, the storage fee is the amount paid in exchange for this service. The areas used for this purpose may include terminals or docks located within ports.

The import and export process is complex from start to finish and involves many detailed stages. One of these stages is the storage of goods that have been delivered or are waiting after passing through customs. This storage system, commonly used due to the rising volume of global trade, is defined as a storage service. Naturally, this service has a cost, which varies depending on several factors and is not fixed.

In determining the storage fee, factors such as the type of goods, their loading form (such as pallets or boxes), and the duration of storage play a significant role. This service, provided by port operators, is fully secure and carried out with the approval and awareness of the cargo owner. Additionally, if the goods arrive within the free time period granted by the port, no fee is charged. However, if the goods remain beyond this allowed period, demurrage and detention invoices are issued to the receiving parties. In many regions, including Türkiye, these may be reflected as a single demurrage invoice.

The storage fee covers not only the cost of keeping goods in the designated area but also the cost of ensuring their security over time. Once this fee is paid to the port operator, permission is granted for the containers to exit the port.

When calculating storage time, the free time period is excluded from the calculation. Based on factors such as the nature, size, and loading method of the goods, the storage fee is determined according to the duration remaining after deducting the free time.


Who Pays the Storage Fee?

One common question in trade is who is responsible for paying the storage fee that arises from the essential services of storage and safeguarding goods. Port companies that provide this service request the corresponding fee from the importer or exporter. Since the service is offered by port operators, they also issue the invoice. It is important to note that fees vary from port to port, as each port operator determines its own pricing. Another key factor affecting the storage fee is the range of services provided during the time the goods remain in storage.

The free time period is not included in the storage cost. Additionally, companies may request additional storage time from the port operator if needed; such extensions are granted at the discretion of the port authority. The reasons for requiring storage may include missing documentation, delays in customs clearance, or delays in the arrival of the transportation vehicle. The storage fee is paid by the importer directly to the port company, not to the transportation carrier.

Storage fees are usually expected expenses. When the free time is exceeded, this cost arises and companies pay it knowingly. However, in some cases, companies may retrieve their goods before free time ends. In such situations, they can complete shipment and delivery without incurring any storage fees.


Differences Between Storage Fees and Demurrage

Storage fees arise when commercial goods remain at the port for various reasons. If they remain within the free time period, no storage fee is charged. There is no universal or fixed storage fee and customs storage fee vary depending on the port operator or customs authority. Additionally, the extent to which goods exceed the free time period is a major factor in determining the overall cost.

Once commercial goods are discharged from a vessel, the free time period begins. The time beyond the free time until the goods are retrieved generates demurrage. If the goods remain beyond the free period allowed by the carrier, demurrage and detention invoices are issued to the receiving company. In short, demurrage, which refers to the fee incurred when free time is exceeded, is different from storage fees.

Globally, and within international trade practices, demurrage invoices are issued for goods that exceed free time while waiting at the port. If the carrier’s permitted time is also exceeded, a detention invoice is issued. In many regions, both are combined under a single demurrage invoice.

Goods must be collected from port storage areas within the timeframe granted by the carrier. If this period is exceeded and the goods are not retrieved, a demurrage invoice is issued in addition to the storage fee. Demurrage, which appears as an extra cost on top of storage, is issued when both free time and the carrier’s allowed time are exceeded.

Just like storage fees, demurrage is paid by the importer to the transportation company responsible for the containers. If this payment is not made, the goods will not be released, similar to unpaid storage fees. The demurrage amount is calculated based on factors such as how long the permitted time has been exceeded, the type of goods, and their method of storage.

Storage fees are more common and generally affect more importers, whereas demurrage does not occur as frequently. Companies try to avoid demurrage whenever possible. Storage fees, arising from exceeding free time, are usually expected. However, if delays caused by the carrier result in exceeding the allowed time, the resulting demurrage fee becomes the carrier’s responsibility. Therefore, storage fees and demurrage are not the same.