Three clocks start when the ship berths
People use demurrage, detention and storage interchangeably, but they are three different charges from different parties:
- Demurrage is charged by the shipping line when a full container stays in the terminal beyond the line's free days.
- Detention is charged by the shipping line when you keep its container outside the terminal, at your premises or on the highway, beyond the free days allowed for returning it empty.
- Terminal storage is charged by the terminal operator when cargo stays beyond the terminal's own free period.
Free days differ between carriers and between terminal and line, and the daily rates usually escalate the longer the box sits. You can be paying more than one of them at once. Maersk, for example, publishes PNG-specific demurrage and detention terms and extends free time over public holidays. Ask every carrier for its current PNG terms in writing. For the full picture of costs, see our complete guide to shipping to Lae.
Why these charges bite harder in PNG
Clearance in PNG involves Customs, NAQIA and the carrier's release process, and any one of them can hold things up. Combine that with Highlands deliveries that take days each way and it's easy to burn through a week of free time before the box is even unpacked. The most common causes we see are:
- Import entries lodged after arrival rather than before it.
- Missing permits, particularly NAQIA permits for food and used machinery.
- Duty not paid promptly after assessment.
- Original bills of lading not surrendered in time.
- Trucks not booked, or held up by road closures.
Port and terminal charges
At Lae you'll see terminal handling charges from SPICT and port charges connected with PNG Ports Corporation. The ICCC publishes maximum allowable tariffs for PNG Ports' Tier 1 ports, including Lae, and PNG Ports may charge less than those caps. That regulated framework covers services such as berthing; other charges in the chain, including carrier and agent fees, are set commercially. When a destination charge looks unusual, ask which party is levying it and on what basis.
Customs penalties and interest
PNG Customs is explicit about the cost of getting things wrong. According to its published import procedures:
- Duties are due within five clear working days of the Notice of Assessment. Late payment attracts interest at 8% for each five-day period or part thereof, plus an administrative penalty.
- An incorrect declaration, such as a wrong value or classification, can bring an administrative penalty of 50% to 200% of the additional duties and taxes owed, and more scrutiny on future imports.
- Importing prohibited or restricted goods without a permit can lead to seizure and prosecution. Once goods are seized, you have 30 calendar days to pay a security or start court proceedings, after which Customs can auction them.
Payments are electronic or by EFTPOS only; cash isn't accepted. Our customs clearance guide sets out the timeline, and our duty and GST guide explains how the amounts are calculated.
Quarantine treatment and inspection fees
Non-compliant wood packaging, soil on used machinery and food shipped without a permit all lead to NAQIA holds, treatment and inspection charges, and extra storage while it's sorted out. These costs are usually billed separately from the freight. The cheapest fix is always at origin: ISPM 15 packaging, thorough cleaning and the right permit before shipment. See our NAQIA requirements guide.
Other charges that catch people out
| Charge | What triggers it | How to avoid it |
|---|---|---|
| Bill of lading amendment fee | Correcting consignee, description or weights after issue | Check draft B/Ls carefully before they're finalised |
| Telex release or express release fee | Releasing cargo without original bills | Agree the release method up front; consider sea waybills |
| LCL depot and unpacking fees | Deconsolidation in Lae | Ask for these in the quote; compare with FCL |
| Truck waiting time | Truck booked but cargo not released | Only book trucks once release is confirmed |
| Security escort | High-value cargo to the Highlands | Budget for it from the start |
| Container cleaning or damage | Empty returned dirty or damaged | Unpack carefully; photograph on receipt and return |
| Re-delivery or re-handling | Failed delivery or change of plan | Confirm site access and receiving hours |
A simple prevention plan
- Get the carrier's free time and daily rates in writing at booking, and negotiate more free days for Highlands deliveries.
- Have your customs broker lodge the entry before the vessel arrives; PNG Customs allows lodgement up to five working days before arrival.
- Have funds ready to pay duty as soon as the assessment is issued.
- Sort NAQIA permits before shipment, not after arrival.
- Book transport once release is confirmed, and track empty returns.
For more ways to trim the bill, see how to reduce shipping costs to Lae, and to check whether a quote hides any of these charges, use our container cost breakdown.
Frequently asked questions
What's the difference between demurrage and detention in PNG?
Demurrage applies when a full container stays in the terminal beyond the shipping line's free days. Detention applies when you keep the line's container outside the terminal beyond the free days for returning it. Terminal storage is a separate charge again.
Can I negotiate free time in Lae?
Often, yes, especially for regular volume or Highlands deliveries. Negotiate at booking and get the agreed free time in writing.
What happens if I pay PNG customs duty late?
You pay the original duty plus interest at 8% for each five-day period or part thereof that it remains unpaid, and an administrative penalty fee.
Wade Miller
Senior Air Freight Writer, Sydney
Wade has spent more than 20 years in freight, from cargo terminal ramps to forwarding operations and customs documentation, working with importers and exporters across Australia and the Asia-Pacific. He writes practical guides on rates, paperwork and the rules that affect shipments, and reviews them against primary sources such as customs authority publications and carrier notices.
Related guides
Back to the complete guide to shipping to Lae
This guide is general information based on publicly available sources at the date shown. Rules, rates and schedules change, so confirm details with PNG Customs, NAQIA, your carrier or a licensed customs broker before you ship. Spotted something out of date? Report a correction.