Demurrage Charges in Saudi Arabia - Complete Guide

Demurrage is one of the biggest hidden costs for importers in Saudi Arabia. A delayed clearance can cost thousands of riyals per container. This guide explains how it works and how to avoid it.

What is Demurrage?

Demurrage = fee charged by ports for containers that exceed the free storage period after unloading.

⚠️ Don’t confuse with Detention = fee for keeping the container itself (charged by shipping line).

Free Storage Periods in Saudi Ports

Port	Free Days
Jeddah Islamic Port	5-7 days
King Abdulaziz Port (Dammam)	5-10 days
Jubail Commercial Port	5 days
Yanbu Commercial Port	5 days
Air ports	24-48 hours

Free period depends on shipping line agreement and container type.

Demurrage Rates (Approximate)

Container Demurrage (Per Day)

Container Type	After Free Days
20ft Standard	50-150 SAR
40ft Standard	100-300 SAR
40ft High Cube	150-400 SAR
20ft Reefer	200-500 SAR
40ft Reefer	300-600 SAR
Open-top/Flat-rack	250-500 SAR

Detention Rates (Shipping Line)

After 7-14 free days:

• 20ft: $50-100/day
• 40ft: $80-150/day
• Reefer: $120-250/day

How Quickly Demurrage Adds Up

Example: 1 × 40ft container delayed 10 days at Jeddah

Day	Demurrage	Cumulative
6	200	200
7	200	400
8	200	600
9	200	800
10	200	1,000
11	250 (escalation)	1,250
12	250	1,500
13	250	1,750
14	250	2,000
15	300 (max rate)	2,300

Total: 2,300 SAR for one container delayed 10 days

For a 5-container shipment: 11,500 SAR in demurrage alone

Top Causes of Demurrage in Saudi Arabia

1. Missing Documents (40% of cases)

• No Certificate of Origin
• Missing health certificate (food/pharma)
• Incomplete commercial invoice

2. SABER Not Done in Time

• Products requiring SABER but no certificate
• PC or SC delayed by lab testing

3. Wrong HS Code Classification

• Customs rejects declaration
• Re-classification needed
• Extra inspection ordered

4. Goods Inspection

• Random or targeted inspection
• Lab testing for food/chemicals
• Physical examination for high-risk items

5. Payment Delays

• VAT not paid on time
• Customs duties pending
• Service fees not settled

How to Avoid Demurrage in Saudi Arabia

Strategy 1: Pre-Clearance (Most Effective)

Submit customs declaration BEFORE vessel arrives:

• Use FASAH platform
• Submit 24-48 hours before ETA
• Result: clearance in 2 hours instead of 48

Strategy 2: Document Preparation

Prepare ALL documents before shipping:

• Commercial invoice (certified)
• Bill of Lading
• Certificate of Origin
• Packing list
• All special certificates (SFDA/SASO)

Strategy 3: Get SABER Done Early

For products requiring SABER:

• Apply 4-6 weeks before shipping
• Get SC issued before container arrives

Strategy 4: Use Experienced Broker

A skilled broker:

• Knows what each port wants
• Has direct relationships with customs officers
• Can predict and prevent issues

Strategy 5: Choose Correct HS Code

Wrong classification = automatic delays. Use HS Code experts.

What If Demurrage Already Started?

Immediate Actions:

1. Identify the bottleneck

   • Is it documents?
   • Customs decision?
   • Payment?

2. Escalate

   • Contact senior shipping agent
   • Request expedited customs review
   • Pay duties immediately

3. Document Everything

   • Time-stamped emails
   • Reasons for delay
   • For potential dispute later

OBOOR’s Demurrage Guarantee

Since most demurrage is caused by broker errors or process issues, OBOOR offers:

✅ No demurrage from our side - if delay caused by:

• Customs procedures
• Shipping line issues
• OBOOR team errors

❌ Not covered:

• Importer’s missing documents
• Required lab testing
• Customs random inspection

Demurrage at Different Saudi Ports

Jeddah Islamic Port

• Highest volume = most experienced staff
• 5-7 day free period
• 24/7 operations
• Average clearance with OBOOR: 24-48 hours

Dammam Port

• Industrial focus = special procedures
• 5-10 day free period (better)
• Strict for chemicals
• Average clearance: 24-48 hours

Jubail Port

• Industrial materials specialty
• 5 day free period (strict)
• Royal Commission coordination needed
• Average clearance: 48-72 hours

Cost-Benefit Analysis

Hiring a quality broker (slightly higher fees) vs cheap broker + demurrage:

Scenario	Broker Fee	Demurrage	Total
Cheap broker, 7 days delay	500	1,400	1,900
Quality broker (OBOOR), no delay	1,200	0	1,200

Saving: 700 SAR + on-time delivery = priceless

How OBOOR Eliminates Demurrage

We provide:

• 24/7 shipment tracking
• Pre-arrival document preparation
• Pre-clearance via FASAH
• Direct port presence
• Demurrage guarantee on our side

Get expert help - protect your shipments from demurrage.