Free Zone Storage Costs for DG and Breakbulk Cargo

Storage is the cost that shippers of dangerous goods and breakbulk most often underestimate. The freight quote looks fine, then the cargo waits two weeks for a buyer, a permit or a vessel, and the storage and handling invoice ends up larger than expected. Storing in a Dubai free zone can lower that bill, but only if you understand what drives it. Here is what goes into free zone storage costs for these two cargo types.

Port storage versus free zone storage

After discharge, cargo gets a period of free time at the terminal. After that, the terminal charges storage, usually at rates that rise the longer the cargo stays, because terminals want the space back. A free zone warehouse or yard charges for space on its own terms, usually per square metre, per cubic metre or per tonne for an agreed period. If your cargo will wait longer than the port's free time, moving it into a free zone facility is often cheaper. It also delays import duty, because goods in a designated free zone are outside UAE customs territory until they enter the mainland.

What drives the cost for dangerous goods

DG storage costs more than general storage, and the reasons are mostly about safety and approvals.

• Licensed space. Only warehouses approved for the relevant hazard classes can take DG. Approved space is limited, so it costs more, and some classes are accepted by very few facilities.
• Segregation. Incompatible classes have to be kept apart, which uses more floor space than the cargo itself takes up.
• Building systems. Fire suppression, ventilation, spill containment and, for some products, temperature control. These are built into the rate.
• Documents and checks. The warehouse will want the SDS and DG declaration before accepting the cargo. Missing paperwork means the cargo waits at the port and port storage keeps running.

The cheapest way to cut DG storage cost is to have the documents complete before arrival. Our article on dangerous goods customs clearance in the UAE covers what is needed.

What drives the cost for breakbulk

• Footprint, not weight. A long steel structure takes up a lot of yard space even if it is light, and it can't be stacked.
• Handling in and out. Each move needs a crane or a heavy forklift. For heavy pieces the handling charges can be higher than the storage itself.
• Open yard or covered. Steel and machinery that can't sit in the sun or the humidity need covered space, which costs more.
• Distance from the quay. A yard inside the port or right next to it saves road moves and permits for oversized pieces.

Ways to keep the bill down

• Agree the storage rate, the minimum charge and the handling tariff in writing before the cargo arrives.
• Plan direct transfer from the vessel to the free zone facility so the cargo doesn't use up port free time first.
• Group cargo that will leave together, so it isn't moved twice inside the facility.
• Book the onward vessel or truck early. Most extra storage days come from waiting for space, not from the cargo itself.
• For breakbulk, protect the cargo properly while it waits. Our guide on breakbulk damage prevention covers storage practice.

Storage as part of a re-export plan

Free zone storage is often one step in a re-export. The cargo arrives, waits for a buyer, and leaves for another market. If that is your plan, read JAFZA and re-export for bulk and breakbulk cargo alongside this article.

Anil Darya arranges storage for dangerous goods and breakbulk cargo in and around Jebel Ali. Send us the cargo type, its UN number or dimensions, the expected storage period and the onward destination at info@anildarya.co, and we will give you storage and handling costs before the cargo ships.