How to Reduce Demurrage Costs: The Financial Strategy Supply Chains Overlook
How to Reduce Demurrage Costs: The Financial Strategy Supply Chains Overlook
How to Reduce Demurrage Costs: The Financial Strategy Supply Chains Overlook
In the low-margin world of global commodities, efficiency is everything. Yet, even the most optimised supply chains bleed revenue through a silent, persistent cost: demurrage.
For years, logistics managers have treated demurrage purely as a visibility problem. They invest in better tracking software, negotiate harder on free-time days, and digitise their Bills of Lading. These are valid strategies, but they fail to address a massive, hidden cause of port delays: slow cross-border payments.
If your vessel arrives on a Friday but your funds don't clear until Tuesday, you are paying for four days of demurrage, not because of logistical failure, but because of banking friction.
In this guide, we will analyse the standard methods for reducing these costs and introduce the "missing link" that modern financial technology, specifically stablecoins and blockchain, offers to the commodities market.
What You Will Learn
In this guide, we move beyond basic logistics advice to explore the financial root causes of port delays. You will learn:
The true distinction between demurrage and detention (and why it matters).
The limitations of current strategies like extended free time and visibility software.
The "Friday Afternoon Gap" that traditional banking creates in your supply chain.
How to reduce demurrage costs using Damisa’s T+0 stablecoin settlement to release Bills of Lading instantly.
A real-world case study comparing SWIFT vs. Blockchain settlement in a coffee shipment scenario.
The Basics: Demurrage vs. Detention
Before addressing the solution, it is vital to distinguish between the charges, as they are often conflated.
Demurrage: This fee is charged when a container is still full and under the control of the shipping line, sitting within the port terminal, after the "free time" has expired. It is essentially a storage penalty.
Detention: This fee applies when the consignee holds onto the carrier’s container outside of the port terminal (e.g., at your warehouse) beyond the allotted free time.
Both are penalising, but demurrage is the most common pain point caused by payment delays that prevent the release of the Bill of Lading (BoL).
The Status Quo: Existing Methods to Reduce Demurrage
If you search for "how to reduce demurrage costs," the standard industry advice focuses almost exclusively on logistics and planning. These methods are necessary, but they have ceilings.
1. Negotiating Extended Free Time
The most common advice is to negotiate a longer "free time" window in your service contracts. Standard free time might be 3–5 days; large volume shippers will push for 10–14 days.
How it works: You leverage your annual shipping volume to force the carrier to absorb the storage risk.
The Limitation: This is becoming increasingly difficult. As global ports face congestion and carriers consolidate, they are tightening these windows to ensure equipment turnover. Unless you are a shipping giant, your leverage here is shrinking. Furthermore, even 14 days of free time won't save you if a payment dispute stalls the cargo for three weeks.
2. Investing in Visibility Software
Advanced supply chain platforms and Maritime AI are excellent for predicting arrival times.
How it works: These tools track the vessel in real-time, alerting you if a ship is delayed so you don't send trucks to the port too early. They provide "Actionable Intelligence."
The Limitation: Knowing a vessel has arrived is not the same as being able to access it. You can have the best visibility in the world, but if your supplier refuses to telegraph release the cargo because the wire transfer hasn't hit their account, your truck sits idle. Visibility solves the informational gap, not the financial gap.
3. Pre-clearing Customs
Best practice dictates that all documentation (commercial invoice, packing list, certificate of origin) should be submitted to customs brokers well before the vessel berths.
How it works: This ensures that bureaucratic red tape doesn't hold up the container.
The Limitation: Customs clearance and Commercial clearance are two different gates. Customs authorities may clear your goods for entry, but the shipping line will not release the container until they receive the "Commercial Release" from the seller. If the seller hasn't been paid, the goods stay grounded, regardless of what Customs says.
The Missing Link: The "Payment Lag"
Here is the factor most articles ignore: Financial Demurrage.
In traditional B2B cross-border transactions, the movement of money is significantly slower than the movement of information. When a shipment of cocoa arrives in Rotterdam from Ghana, or soy arrives in China from Brazil, the seller requires payment validation before releasing the BoL.
Using the SWIFT network, this payment can take 1 to 5 business days to settle. If the transaction hits an intermediary bank on a Friday afternoon, a public holiday, or simply gets flagged for manual review, the funds are stuck in limbo.
Meanwhile, the container sits at the port. The meter is ticking. You are effectively paying a "waiting tax" because your bank operates on 1970s infrastructure.
How to Reduce Demurrage Costs with Damisa’s T+0 Settlement
To eliminate financial demurrage, you must synchronise the speed of payment with the speed of logistics. This is where Damisa’s solution redefines the process.
We utilise fiat-backed stablecoins and blockchain infrastructure to create a payment rail that is instant, transparent, and always open. Here is how this technology directly attacks demurrage costs:
Instant "Atomic" Settlement (T+0)
In banking, "T+2" means the trade settles two days after execution. Damisa offers T+0.
By using stablecoins (digital assets pegged 1:1 to currencies like USD or GBP), value is transferred from the buyer's wallet to the seller's wallet in seconds. There is no "pending" state. Once the transaction is confirmed on the blockchain (which takes seconds), it is final. The seller sees the funds immediately and can release the Bill of Lading instantly.
The 24/7/365 Advantage
Logistics does not stop on weekends. Ships dock on Saturdays; terminals operate on Sundays. Yet, banks close on Friday at 5 PM. Damisa’s blockchain infrastructure never sleeps. You can settle a multi-million dollar invoice at 3:00 AM on a Sunday. This eliminates the "weekend gap" where cargo sits accruing demurrage simply because the banks are closed.
Elimination of Intermediaries
A typical international wire passes through 2–4 correspondent banks, each taking a fee and adding a delay. Damisa creates a direct peer-to-peer connection. This reduces the risk of funds being frozen by a third-party intermediary, ensuring the payment arrives exactly when expected.
Deep Dive: What is a Fiat-Backed Stablecoin? The CFO’s Guide to Instant B2B Settlement
Industry Context: Blockchain in Commodity Trading: The Executive Guide to Instant Settlement & Cost Reduction
Comparison: Traditional Banking vs. Damisa
The following table highlights why legacy banking is often the root cause of unnecessary port fees.
Feature | Traditional Banking (SWIFT) | Damisa (Stablecoin & Blockchain) |
Settlement Speed | 1–5 Business Days (T+2 to T+5) | Instant (T+0 / Minutes) |
Availability | Mon–Fri, Banking Hours Only | 24/7/365 (inc. Weekends/Holidays) |
BoL Release | Delayed until funds clear | Immediate upon payment |
Demurrage Risk | High (during weekends/holidays) | Near Zero (payment is never the bottleneck) |
Transaction Visibility | Opaque (Black Box) | Transparent (Real-time on-chain) |
Cost Efficiency | High (Intermediary fees + FX spread) | Low (Flat fee / Minimal gas) |
Use Case: The "Friday Afternoon" Scenario
Let us look at a practical example involving a shipment of Coffee Beans from Brazil to Europe.
The Situation:
A vessel docks in Hamburg on Friday at 14:00. The seller requires the final balance payment of $500,000 to release the digital Bill of Lading. The negotiated "Free Time" is 3 days.
Scenario A: The Traditional Route
Friday, 14:30: The European buyer initiates a SWIFT wire transfer.
Friday, 17:00: The banks close. The transfer is "pending."
Saturday & Sunday: The funds sit idle. The vessel sits in port (Days 1 & 2 of Free Time used).
Monday: The transfer moves through a correspondent bank in New York.
Tuesday: The seller receives the funds and releases the BoL.
Wednesday: Trucks enter the port to collect the beans.
Result: The cargo was picked up on Day 6.
Cost: 3 Free Days + 3 Days of Demurrage charged.
Scenario B: The Damisa Route
Friday, 14:30: The European buyer initiates a USD Stablecoin payment via Damisa.
Friday, 14:45: The funds arrive in the Seller's wallet. Settlement is final.
Friday, 15:00: The Seller releases the digital BoL.
Friday, 16:00: The transport company is notified for pickup.
Saturday Morning: Trucks collect the beans.
Result: The cargo was picked up on Day 2.
Cost: Within Free Time. $0 Demurrage charged.
Learn more: The Best Stablecoin Payment Solution for B2B Cross-Border Transactions
3 Strategic Steps to Reduce Demurrage Costs
To truly minimise exposure, modern CFOs and Supply Chain Directors should adopt a three-pronged approach:
1. Negotiate Smart Contracts, Not Just Rates
Don't just haggle over the shipping price. Haggle over the terms. Ensure your "Free Time" clause accounts for potential customs delays, and clarify when the clock starts ticking (e.g., when the vessel berths vs. when the container is discharged).
2. Digitise Your Documentation
Move away from paper Bills of Lading. Use electronic Bills of Lading (eBL). If you are paying instantly with crypto, you don't want to wait for a courier to deliver a piece of paper.
3. Modernise Your Payment Rails
This is the lowest-hanging fruit. By switching to a blockchain-based payment rail like Damisa, you remove the "weekend risk" and the "intermediary tax" from your supply chain. You gain control over exactly when the money arrives and when the cargo is released.
FAQ
Does using stablecoins specifically reduce detention charges?
Indirectly, yes.
By speeding up the initial release of the cargo (avoiding demurrage), you get the container to your warehouse sooner, giving you more buffer time to unload and return the empty container, thus avoiding detention.
Q: Is it safe to use crypto for B2B commodity payments?
Yes.
When using stablecoins. Unlike Bitcoin, stablecoins are pegged to fiat currencies (like the Dollar), removing volatility. Damisa provides a secure, compliant infrastructure for these high-value transfers.
Q: Can I use Damisa if my supplier is in an emerging market like LATAM or Africa?
A: Absolutely. This is where the impact is highest. Traditional banking into these regions is slow and expensive. Stablecoins bypass these hurdles completely.
Conclusion
Demurrage is often viewed as a cost of doing business, but in many cases, it is simply the cost of outdated banking.
You have optimised your logistics, tracked your containers, and negotiated your freight rates. Now, it is time to optimise your liquidity. Stop paying for time you don't use.
Ready to eliminate financial friction from your supply chain?
Contact Damisa today to learn how B2B stablecoin settlements can protect your bottom line.
In the low-margin world of global commodities, efficiency is everything. Yet, even the most optimised supply chains bleed revenue through a silent, persistent cost: demurrage.
For years, logistics managers have treated demurrage purely as a visibility problem. They invest in better tracking software, negotiate harder on free-time days, and digitise their Bills of Lading. These are valid strategies, but they fail to address a massive, hidden cause of port delays: slow cross-border payments.
If your vessel arrives on a Friday but your funds don't clear until Tuesday, you are paying for four days of demurrage, not because of logistical failure, but because of banking friction.
In this guide, we will analyse the standard methods for reducing these costs and introduce the "missing link" that modern financial technology, specifically stablecoins and blockchain, offers to the commodities market.
What You Will Learn
In this guide, we move beyond basic logistics advice to explore the financial root causes of port delays. You will learn:
The true distinction between demurrage and detention (and why it matters).
The limitations of current strategies like extended free time and visibility software.
The "Friday Afternoon Gap" that traditional banking creates in your supply chain.
How to reduce demurrage costs using Damisa’s T+0 stablecoin settlement to release Bills of Lading instantly.
A real-world case study comparing SWIFT vs. Blockchain settlement in a coffee shipment scenario.
The Basics: Demurrage vs. Detention
Before addressing the solution, it is vital to distinguish between the charges, as they are often conflated.
Demurrage: This fee is charged when a container is still full and under the control of the shipping line, sitting within the port terminal, after the "free time" has expired. It is essentially a storage penalty.
Detention: This fee applies when the consignee holds onto the carrier’s container outside of the port terminal (e.g., at your warehouse) beyond the allotted free time.
Both are penalising, but demurrage is the most common pain point caused by payment delays that prevent the release of the Bill of Lading (BoL).
The Status Quo: Existing Methods to Reduce Demurrage
If you search for "how to reduce demurrage costs," the standard industry advice focuses almost exclusively on logistics and planning. These methods are necessary, but they have ceilings.
1. Negotiating Extended Free Time
The most common advice is to negotiate a longer "free time" window in your service contracts. Standard free time might be 3–5 days; large volume shippers will push for 10–14 days.
How it works: You leverage your annual shipping volume to force the carrier to absorb the storage risk.
The Limitation: This is becoming increasingly difficult. As global ports face congestion and carriers consolidate, they are tightening these windows to ensure equipment turnover. Unless you are a shipping giant, your leverage here is shrinking. Furthermore, even 14 days of free time won't save you if a payment dispute stalls the cargo for three weeks.
2. Investing in Visibility Software
Advanced supply chain platforms and Maritime AI are excellent for predicting arrival times.
How it works: These tools track the vessel in real-time, alerting you if a ship is delayed so you don't send trucks to the port too early. They provide "Actionable Intelligence."
The Limitation: Knowing a vessel has arrived is not the same as being able to access it. You can have the best visibility in the world, but if your supplier refuses to telegraph release the cargo because the wire transfer hasn't hit their account, your truck sits idle. Visibility solves the informational gap, not the financial gap.
3. Pre-clearing Customs
Best practice dictates that all documentation (commercial invoice, packing list, certificate of origin) should be submitted to customs brokers well before the vessel berths.
How it works: This ensures that bureaucratic red tape doesn't hold up the container.
The Limitation: Customs clearance and Commercial clearance are two different gates. Customs authorities may clear your goods for entry, but the shipping line will not release the container until they receive the "Commercial Release" from the seller. If the seller hasn't been paid, the goods stay grounded, regardless of what Customs says.
The Missing Link: The "Payment Lag"
Here is the factor most articles ignore: Financial Demurrage.
In traditional B2B cross-border transactions, the movement of money is significantly slower than the movement of information. When a shipment of cocoa arrives in Rotterdam from Ghana, or soy arrives in China from Brazil, the seller requires payment validation before releasing the BoL.
Using the SWIFT network, this payment can take 1 to 5 business days to settle. If the transaction hits an intermediary bank on a Friday afternoon, a public holiday, or simply gets flagged for manual review, the funds are stuck in limbo.
Meanwhile, the container sits at the port. The meter is ticking. You are effectively paying a "waiting tax" because your bank operates on 1970s infrastructure.
How to Reduce Demurrage Costs with Damisa’s T+0 Settlement
To eliminate financial demurrage, you must synchronise the speed of payment with the speed of logistics. This is where Damisa’s solution redefines the process.
We utilise fiat-backed stablecoins and blockchain infrastructure to create a payment rail that is instant, transparent, and always open. Here is how this technology directly attacks demurrage costs:
Instant "Atomic" Settlement (T+0)
In banking, "T+2" means the trade settles two days after execution. Damisa offers T+0.
By using stablecoins (digital assets pegged 1:1 to currencies like USD or GBP), value is transferred from the buyer's wallet to the seller's wallet in seconds. There is no "pending" state. Once the transaction is confirmed on the blockchain (which takes seconds), it is final. The seller sees the funds immediately and can release the Bill of Lading instantly.
The 24/7/365 Advantage
Logistics does not stop on weekends. Ships dock on Saturdays; terminals operate on Sundays. Yet, banks close on Friday at 5 PM. Damisa’s blockchain infrastructure never sleeps. You can settle a multi-million dollar invoice at 3:00 AM on a Sunday. This eliminates the "weekend gap" where cargo sits accruing demurrage simply because the banks are closed.
Elimination of Intermediaries
A typical international wire passes through 2–4 correspondent banks, each taking a fee and adding a delay. Damisa creates a direct peer-to-peer connection. This reduces the risk of funds being frozen by a third-party intermediary, ensuring the payment arrives exactly when expected.
Deep Dive: What is a Fiat-Backed Stablecoin? The CFO’s Guide to Instant B2B Settlement
Industry Context: Blockchain in Commodity Trading: The Executive Guide to Instant Settlement & Cost Reduction
Comparison: Traditional Banking vs. Damisa
The following table highlights why legacy banking is often the root cause of unnecessary port fees.
Feature | Traditional Banking (SWIFT) | Damisa (Stablecoin & Blockchain) |
Settlement Speed | 1–5 Business Days (T+2 to T+5) | Instant (T+0 / Minutes) |
Availability | Mon–Fri, Banking Hours Only | 24/7/365 (inc. Weekends/Holidays) |
BoL Release | Delayed until funds clear | Immediate upon payment |
Demurrage Risk | High (during weekends/holidays) | Near Zero (payment is never the bottleneck) |
Transaction Visibility | Opaque (Black Box) | Transparent (Real-time on-chain) |
Cost Efficiency | High (Intermediary fees + FX spread) | Low (Flat fee / Minimal gas) |
Use Case: The "Friday Afternoon" Scenario
Let us look at a practical example involving a shipment of Coffee Beans from Brazil to Europe.
The Situation:
A vessel docks in Hamburg on Friday at 14:00. The seller requires the final balance payment of $500,000 to release the digital Bill of Lading. The negotiated "Free Time" is 3 days.
Scenario A: The Traditional Route
Friday, 14:30: The European buyer initiates a SWIFT wire transfer.
Friday, 17:00: The banks close. The transfer is "pending."
Saturday & Sunday: The funds sit idle. The vessel sits in port (Days 1 & 2 of Free Time used).
Monday: The transfer moves through a correspondent bank in New York.
Tuesday: The seller receives the funds and releases the BoL.
Wednesday: Trucks enter the port to collect the beans.
Result: The cargo was picked up on Day 6.
Cost: 3 Free Days + 3 Days of Demurrage charged.
Scenario B: The Damisa Route
Friday, 14:30: The European buyer initiates a USD Stablecoin payment via Damisa.
Friday, 14:45: The funds arrive in the Seller's wallet. Settlement is final.
Friday, 15:00: The Seller releases the digital BoL.
Friday, 16:00: The transport company is notified for pickup.
Saturday Morning: Trucks collect the beans.
Result: The cargo was picked up on Day 2.
Cost: Within Free Time. $0 Demurrage charged.
Learn more: The Best Stablecoin Payment Solution for B2B Cross-Border Transactions
3 Strategic Steps to Reduce Demurrage Costs
To truly minimise exposure, modern CFOs and Supply Chain Directors should adopt a three-pronged approach:
1. Negotiate Smart Contracts, Not Just Rates
Don't just haggle over the shipping price. Haggle over the terms. Ensure your "Free Time" clause accounts for potential customs delays, and clarify when the clock starts ticking (e.g., when the vessel berths vs. when the container is discharged).
2. Digitise Your Documentation
Move away from paper Bills of Lading. Use electronic Bills of Lading (eBL). If you are paying instantly with crypto, you don't want to wait for a courier to deliver a piece of paper.
3. Modernise Your Payment Rails
This is the lowest-hanging fruit. By switching to a blockchain-based payment rail like Damisa, you remove the "weekend risk" and the "intermediary tax" from your supply chain. You gain control over exactly when the money arrives and when the cargo is released.
FAQ
Does using stablecoins specifically reduce detention charges?
Indirectly, yes.
By speeding up the initial release of the cargo (avoiding demurrage), you get the container to your warehouse sooner, giving you more buffer time to unload and return the empty container, thus avoiding detention.
Q: Is it safe to use crypto for B2B commodity payments?
Yes.
When using stablecoins. Unlike Bitcoin, stablecoins are pegged to fiat currencies (like the Dollar), removing volatility. Damisa provides a secure, compliant infrastructure for these high-value transfers.
Q: Can I use Damisa if my supplier is in an emerging market like LATAM or Africa?
A: Absolutely. This is where the impact is highest. Traditional banking into these regions is slow and expensive. Stablecoins bypass these hurdles completely.
Conclusion
Demurrage is often viewed as a cost of doing business, but in many cases, it is simply the cost of outdated banking.
You have optimised your logistics, tracked your containers, and negotiated your freight rates. Now, it is time to optimise your liquidity. Stop paying for time you don't use.
Ready to eliminate financial friction from your supply chain?
Contact Damisa today to learn how B2B stablecoin settlements can protect your bottom line.
In the low-margin world of global commodities, efficiency is everything. Yet, even the most optimised supply chains bleed revenue through a silent, persistent cost: demurrage.
For years, logistics managers have treated demurrage purely as a visibility problem. They invest in better tracking software, negotiate harder on free-time days, and digitise their Bills of Lading. These are valid strategies, but they fail to address a massive, hidden cause of port delays: slow cross-border payments.
If your vessel arrives on a Friday but your funds don't clear until Tuesday, you are paying for four days of demurrage, not because of logistical failure, but because of banking friction.
In this guide, we will analyse the standard methods for reducing these costs and introduce the "missing link" that modern financial technology, specifically stablecoins and blockchain, offers to the commodities market.
What You Will Learn
In this guide, we move beyond basic logistics advice to explore the financial root causes of port delays. You will learn:
The true distinction between demurrage and detention (and why it matters).
The limitations of current strategies like extended free time and visibility software.
The "Friday Afternoon Gap" that traditional banking creates in your supply chain.
How to reduce demurrage costs using Damisa’s T+0 stablecoin settlement to release Bills of Lading instantly.
A real-world case study comparing SWIFT vs. Blockchain settlement in a coffee shipment scenario.
The Basics: Demurrage vs. Detention
Before addressing the solution, it is vital to distinguish between the charges, as they are often conflated.
Demurrage: This fee is charged when a container is still full and under the control of the shipping line, sitting within the port terminal, after the "free time" has expired. It is essentially a storage penalty.
Detention: This fee applies when the consignee holds onto the carrier’s container outside of the port terminal (e.g., at your warehouse) beyond the allotted free time.
Both are penalising, but demurrage is the most common pain point caused by payment delays that prevent the release of the Bill of Lading (BoL).
The Status Quo: Existing Methods to Reduce Demurrage
If you search for "how to reduce demurrage costs," the standard industry advice focuses almost exclusively on logistics and planning. These methods are necessary, but they have ceilings.
1. Negotiating Extended Free Time
The most common advice is to negotiate a longer "free time" window in your service contracts. Standard free time might be 3–5 days; large volume shippers will push for 10–14 days.
How it works: You leverage your annual shipping volume to force the carrier to absorb the storage risk.
The Limitation: This is becoming increasingly difficult. As global ports face congestion and carriers consolidate, they are tightening these windows to ensure equipment turnover. Unless you are a shipping giant, your leverage here is shrinking. Furthermore, even 14 days of free time won't save you if a payment dispute stalls the cargo for three weeks.
2. Investing in Visibility Software
Advanced supply chain platforms and Maritime AI are excellent for predicting arrival times.
How it works: These tools track the vessel in real-time, alerting you if a ship is delayed so you don't send trucks to the port too early. They provide "Actionable Intelligence."
The Limitation: Knowing a vessel has arrived is not the same as being able to access it. You can have the best visibility in the world, but if your supplier refuses to telegraph release the cargo because the wire transfer hasn't hit their account, your truck sits idle. Visibility solves the informational gap, not the financial gap.
3. Pre-clearing Customs
Best practice dictates that all documentation (commercial invoice, packing list, certificate of origin) should be submitted to customs brokers well before the vessel berths.
How it works: This ensures that bureaucratic red tape doesn't hold up the container.
The Limitation: Customs clearance and Commercial clearance are two different gates. Customs authorities may clear your goods for entry, but the shipping line will not release the container until they receive the "Commercial Release" from the seller. If the seller hasn't been paid, the goods stay grounded, regardless of what Customs says.
The Missing Link: The "Payment Lag"
Here is the factor most articles ignore: Financial Demurrage.
In traditional B2B cross-border transactions, the movement of money is significantly slower than the movement of information. When a shipment of cocoa arrives in Rotterdam from Ghana, or soy arrives in China from Brazil, the seller requires payment validation before releasing the BoL.
Using the SWIFT network, this payment can take 1 to 5 business days to settle. If the transaction hits an intermediary bank on a Friday afternoon, a public holiday, or simply gets flagged for manual review, the funds are stuck in limbo.
Meanwhile, the container sits at the port. The meter is ticking. You are effectively paying a "waiting tax" because your bank operates on 1970s infrastructure.
How to Reduce Demurrage Costs with Damisa’s T+0 Settlement
To eliminate financial demurrage, you must synchronise the speed of payment with the speed of logistics. This is where Damisa’s solution redefines the process.
We utilise fiat-backed stablecoins and blockchain infrastructure to create a payment rail that is instant, transparent, and always open. Here is how this technology directly attacks demurrage costs:
Instant "Atomic" Settlement (T+0)
In banking, "T+2" means the trade settles two days after execution. Damisa offers T+0.
By using stablecoins (digital assets pegged 1:1 to currencies like USD or GBP), value is transferred from the buyer's wallet to the seller's wallet in seconds. There is no "pending" state. Once the transaction is confirmed on the blockchain (which takes seconds), it is final. The seller sees the funds immediately and can release the Bill of Lading instantly.
The 24/7/365 Advantage
Logistics does not stop on weekends. Ships dock on Saturdays; terminals operate on Sundays. Yet, banks close on Friday at 5 PM. Damisa’s blockchain infrastructure never sleeps. You can settle a multi-million dollar invoice at 3:00 AM on a Sunday. This eliminates the "weekend gap" where cargo sits accruing demurrage simply because the banks are closed.
Elimination of Intermediaries
A typical international wire passes through 2–4 correspondent banks, each taking a fee and adding a delay. Damisa creates a direct peer-to-peer connection. This reduces the risk of funds being frozen by a third-party intermediary, ensuring the payment arrives exactly when expected.
Deep Dive: What is a Fiat-Backed Stablecoin? The CFO’s Guide to Instant B2B Settlement
Industry Context: Blockchain in Commodity Trading: The Executive Guide to Instant Settlement & Cost Reduction
Comparison: Traditional Banking vs. Damisa
The following table highlights why legacy banking is often the root cause of unnecessary port fees.
Feature | Traditional Banking (SWIFT) | Damisa (Stablecoin & Blockchain) |
Settlement Speed | 1–5 Business Days (T+2 to T+5) | Instant (T+0 / Minutes) |
Availability | Mon–Fri, Banking Hours Only | 24/7/365 (inc. Weekends/Holidays) |
BoL Release | Delayed until funds clear | Immediate upon payment |
Demurrage Risk | High (during weekends/holidays) | Near Zero (payment is never the bottleneck) |
Transaction Visibility | Opaque (Black Box) | Transparent (Real-time on-chain) |
Cost Efficiency | High (Intermediary fees + FX spread) | Low (Flat fee / Minimal gas) |
Use Case: The "Friday Afternoon" Scenario
Let us look at a practical example involving a shipment of Coffee Beans from Brazil to Europe.
The Situation:
A vessel docks in Hamburg on Friday at 14:00. The seller requires the final balance payment of $500,000 to release the digital Bill of Lading. The negotiated "Free Time" is 3 days.
Scenario A: The Traditional Route
Friday, 14:30: The European buyer initiates a SWIFT wire transfer.
Friday, 17:00: The banks close. The transfer is "pending."
Saturday & Sunday: The funds sit idle. The vessel sits in port (Days 1 & 2 of Free Time used).
Monday: The transfer moves through a correspondent bank in New York.
Tuesday: The seller receives the funds and releases the BoL.
Wednesday: Trucks enter the port to collect the beans.
Result: The cargo was picked up on Day 6.
Cost: 3 Free Days + 3 Days of Demurrage charged.
Scenario B: The Damisa Route
Friday, 14:30: The European buyer initiates a USD Stablecoin payment via Damisa.
Friday, 14:45: The funds arrive in the Seller's wallet. Settlement is final.
Friday, 15:00: The Seller releases the digital BoL.
Friday, 16:00: The transport company is notified for pickup.
Saturday Morning: Trucks collect the beans.
Result: The cargo was picked up on Day 2.
Cost: Within Free Time. $0 Demurrage charged.
Learn more: The Best Stablecoin Payment Solution for B2B Cross-Border Transactions
3 Strategic Steps to Reduce Demurrage Costs
To truly minimise exposure, modern CFOs and Supply Chain Directors should adopt a three-pronged approach:
1. Negotiate Smart Contracts, Not Just Rates
Don't just haggle over the shipping price. Haggle over the terms. Ensure your "Free Time" clause accounts for potential customs delays, and clarify when the clock starts ticking (e.g., when the vessel berths vs. when the container is discharged).
2. Digitise Your Documentation
Move away from paper Bills of Lading. Use electronic Bills of Lading (eBL). If you are paying instantly with crypto, you don't want to wait for a courier to deliver a piece of paper.
3. Modernise Your Payment Rails
This is the lowest-hanging fruit. By switching to a blockchain-based payment rail like Damisa, you remove the "weekend risk" and the "intermediary tax" from your supply chain. You gain control over exactly when the money arrives and when the cargo is released.
FAQ
Does using stablecoins specifically reduce detention charges?
Indirectly, yes.
By speeding up the initial release of the cargo (avoiding demurrage), you get the container to your warehouse sooner, giving you more buffer time to unload and return the empty container, thus avoiding detention.
Q: Is it safe to use crypto for B2B commodity payments?
Yes.
When using stablecoins. Unlike Bitcoin, stablecoins are pegged to fiat currencies (like the Dollar), removing volatility. Damisa provides a secure, compliant infrastructure for these high-value transfers.
Q: Can I use Damisa if my supplier is in an emerging market like LATAM or Africa?
A: Absolutely. This is where the impact is highest. Traditional banking into these regions is slow and expensive. Stablecoins bypass these hurdles completely.
Conclusion
Demurrage is often viewed as a cost of doing business, but in many cases, it is simply the cost of outdated banking.
You have optimised your logistics, tracked your containers, and negotiated your freight rates. Now, it is time to optimise your liquidity. Stop paying for time you don't use.
Ready to eliminate financial friction from your supply chain?
Contact Damisa today to learn how B2B stablecoin settlements can protect your bottom line.
Category
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Insights
Date Published
Jan 6, 2026
Written by
Damisaverse
Category
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Insights
Date Published
Jan 6, 2026
Written by
Damisaverse
Category
News
Insights
Date Published
Jan 6, 2026
Written by
Damisaverse
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© 2026 Damisa Technologies. All rights reserved.
Ready to elevate your business?
Easily adapt to changes and scale your operations with our flexible infrastructure, designed to support your business growth.
© 2026 Damisa Technologies. All rights reserved.
Ready to elevate your business?
Easily adapt to changes and scale your operations with our flexible infrastructure, designed to support your business growth.
© 2026 Damisa Technologies. All rights reserved.