How to Avoid Demurrage: A Practical Guide for Carriers and Warehouses - Logifly

Demurrage. It’s a word no one in logistics wants to deal with, but it’s a reality many face too often.

It’s one of those hidden costs that creeps in when things go off schedule, and once it shows up, it adds up fast.

But what exactly causes demurrage? And more importantly—how can we avoid it, even before bringing in fancy tech? Let’s break it down.

So, what is demurrage?

Demurrage refers to the extra charges that build up when cargo stays longer than agreed at  a port, terminal, or warehouse. It’s like a late fee, but on a much bigger scale. Whether it’s containers sitting idle or trucks waiting to be unloaded, that delay starts the clock—and the meter.

These fees don’t just affect carriers. For warehouses and factories, demurrage can throw off entire schedules, delay production, and hurt business relationships. The financial impact hits everyone involved.

Where does demurrage really come from?

While the causes might look different on paper, they often come down to a few common (and avoidable) issues.

One big one: there’s no clear system to track who’s arriving and when. Trucks pile up at the gate during peak hours, all trying to enter at once, causing bottlenecks before they even reach the docks.

Then there’s the yard. If there’s no shared visibility into what’s happening—what docks are free, where trucks are parked, what’s ready to load or unload—everything slows down. Drivers often end up wandering the area or waiting around for instructions.

Communication plays a huge role, too. If dispatchers, gate security, and warehouse staff aren’t all on the same page, even a small delay or change in plan can cause major hold-ups.

Sound familiar? That’s because these challenges are common across factories, 3PLs, and warehouses of all sizes.

Can we avoid demurrage without software?

Definitely—there are practical steps that can be taken even without an IT system in place.

Start with better coordination. Even something as simple as using a shared spreadsheet or a basic scheduling calendar can help stagger truck arrivals and reduce peak-time congestion. Assigning manual time slots, even loosely, brings structure.

Make your yard easier to navigate. Clear signage, printed schedules, and designated loading zones can prevent drivers from getting lost or wasting time waiting for instructions. Regular team briefings or visual boards can keep staff aligned.

And finally—empower your people. A well-informed team that can make quick decisions on-site often prevents small issues from turning into costly delays.

These are all low-tech strategies, but they can make a real difference when applied consistently.

But here’s the thing—tech makes it so much easier

While a simple spreadsheet might track arrivals, LOGIfly makes everything smoother and more efficient. Our dock scheduling system allows carriers, customers, and suppliers to register independently. It automatically adjusts plans in real time and sends updates via SMS or email, keeping everyone informed. This ensures everything runs according to schedule, helping to avoid costly demurrage fees.

For yard management, LOGIfly helps reduce congestion by guiding vehicles and ensuring that drivers don’t wander across the site. This leads to better structure and organization within your yard, preventing unnecessary delays and improving overall flow. And the best part? You don’t have to start with expensive setups like number plate recognition or large screens. LOGIfly allows you to start with manual control—keeping things simple at first and only adding more tech as your operation scales, all while still helping to minimize demurrages.

The best part? You don’t need a massive upfront investment. LOGIfly can scale with you—starting small and expanding as needed, delivering more efficiency with less hassle.

Final thoughts

Avoiding demurrage doesn’t have to be complicated. Small improvements in planning, communication, and yard setup go a long way. But if you’re ready to level up and fully take control of your operations, an integrated solution like LOGIfly can save time, reduce costs, and bring total clarity to your logistics flow.

Want to see how it works in action? Get in touch with us or check out more stories on our blog.