The logistics industry almost has its own language. A typical conversation between two logistics pros is filled with jargon that is very hard for industry outsiders to understand. This article series will explore some of these words as a fun way of getting to know the ins and outs of logistics.
Today’s word is pre-pull.
When a container arrives at a port, you usually have a specified number of days to pick it up before you begin incurring what is known as demurrage fees. Think of demurrage as a kind of late payment. These fees can be quite costly, as they are often charged by container and by day. So if your shipment includes several containers, it could mean a serious hit to your bottom line even if you were late for just a couple of days.
The solution for avoiding demurrage fees seems to be quite simple: just pick up your containers in time. But unfortunately, life doesn’t always work that way. Unforeseen events happen. There’s bad weather and family emergencies. A warehouse isn’t able to receive the cargo until after the last “free” day at the port. And so on.
Luckily, some carriers offer pre-pull services that are specifically intended to avoid demurrage fees. When you ask for a pre-pull, your carrier will pick up your cargo at the port just in time before you start incurring demurrage fees and will temporarily store it in its yard until you can deliver it to its final destination.
Pre-pull services are not necessarily free, of course, but they are almost always way lower than demurrage fees. When it comes to the bottom line, we’ll take a pre-pull over demurrage any day.
Content Creator: Pablo Torres