One of the biggest hidden costs importers face in Kenya is demurrage and storage charges. Many importers only discover these fees when their cargo has already overstayed at the port—by then, the costs are unavoidable.
In this article, we clearly explain the difference between demurrage and storage charges, how they are calculated in Kenya, real-life examples, and how Clearon Logistics helps importers avoid both through proper planning and step-by-step clearance support.
What Is Demurrage?
Demurrage is a charge imposed by the shipping line when a container stays beyond the free days allowed at the port after arrival.
Key Points About Demurrage
- Charged by the shipping line
- Applies to containerized cargo
- Starts counting after free days expire
- Charged per container, per day
Typical Free Days in Kenya
- 3–5 days for imports (varies by shipping line)
What Are Storage Charges?
Storage charges are imposed by the port or cargo terminal (e.g., KPA or airport shed) when goods remain at the port beyond the free storage period.
Key Points About Storage
- Charged by KPA or airport operator
- Applies to both containerized and loose cargo
- Charged per day based on cargo type and size
Demurrage vs Storage: The Key Difference
| Demurrage | Storage |
|---|---|
| Charged by shipping line | Charged by port/terminal |
| Applies to container usage | Applies to space usage |
| Charged per container | Charged per cargo volume |
| Often higher cost | Increases daily |
Many importers mistakenly believe they are the same—they are separate charges and can apply simultaneously.
Example: How Costs Escalate Quickly
An importer’s container arrived at Mombasa Port on Monday.
- Free days: 4 days
- Clearance delayed due to missing permit
- Cargo cleared after 9 days
Charges incurred:
- Demurrage: 5 days × USD 120 = USD 600
- Storage: 5 days × KES 8,000 = KES 40,000
Total unexpected cost: Over KES 120,000, excluding taxes.
These costs were completely avoidable.
Common Causes of Demurrage and Storage in Kenya
- Late submission of documents
- Missing or delayed permits (KEBS, KEPHIS, PPB)
- Incorrect HS code or valuation queries
- Delayed payment of customs taxes
- Poor coordination between importer and clearing agent
Why Many Importers Get Caught Off Guard
Many clearing agents:
- Don’t explain free days clearly
- Don’t track arrival timelines
- Don’t advise on payment sequencing
- Charge flat rates without accountability
This leaves importers exposed to avoidable penalties.
How to Avoid Demurrage and Storage Charges
1. Start Clearance Before Cargo Arrives
Documents and permits should be ready before ETA, not after.
2. Pay Charges in the Correct Sequence
Clearing is a step-by-step process, not a lump-sum payment:
- Freight & insurance
- Customs taxes
- Port handling & clearing fees
3. Track Free Days Aggressively
Free days are limited. Every day matters.
4. Work With a Proactive Clearing Agent
The right agent tracks:
- Vessel arrival
- Free days countdown
- Customs progress
- Release timelines
How Clearon Logistics Helps Clients Avoid These Costs
At Clearon Logistics, we:
- Monitor vessel arrival and free days
- Review documents early
- Advise on permit requirements before shipping
- Guide clients on timely payments
- Coordinate clearance to ensure cargo exits within free days
We don’t wait for problems—we prevent them.
Final Thoughts
Demurrage and storage charges are among the most expensive yet avoidable costs when importing into Kenya. Understanding the difference—and planning correctly—can save importers tens or even hundreds of thousands of shillings.
With Clearon Logistics, clients get:
- Early preparation
- Clear timelines
- Step-by-step guidance
- Faster cargo release
- Lower overall import costs
If you’re planning an import and want to avoid demurrage and storage charges, our team is ready to help.
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