Few things frustrate an importer more than a clean freight invoice followed by a second bill for storage. The shipment arrived on time, the freight rate matched the quote, yet an extra charge appeared because the cargo sat at the terminal for a few days. In Sydney, where terminals handle a steady flow of international and domestic cargo, space is valuable and storage is charged accordingly.

This guide explains what these charges are, who applies them, how free time works and what you can do to avoid them. It forms part of our wider Air Freight Sydney guide, which covers airports, carriers and services across the city.

Demurrage and storage: what the terms mean

In sea freight, demurrage has a precise meaning. It is a charge for keeping a shipping line's container beyond the agreed free days. In air freight, the word is often used more loosely to describe any fee for cargo that stays at an airport terminal or forwarder's warehouse longer than allowed.

Strictly speaking, what you pay at an air cargo terminal is a storage charge. Air cargo does not usually travel in carrier-owned equipment that you keep, so there is no container to detain. You may still see "demurrage" on invoices from some forwarders, but it almost always refers to storage time.

Who charges storage in Sydney?

Several parties can apply storage charges along the way:

  • Airline cargo terminals. International and domestic terminals at Sydney Airport, operated by airlines and ground handling companies, publish their own storage schedules. Qantas Freight, for example, lists its storage fees in its published terminal service fees.
  • Cargo terminal operators at Western Sydney International. With freight operations starting at WSI in July 2026, new facilities apply their own rates and free periods. Check these separately if your cargo is routed through the new airport. Our comparison of Sydney Airport and Western Sydney International explains how the two gateways differ.
  • Forwarder warehouses and depots. Consolidated shipments are often moved to a forwarder's depot for breakdown. These facilities also allow a free period and then charge for storage.
  • Biosecurity-approved premises. Goods that need inspection or treatment may be held at an approved arrangement site, which charges its own fees.

Your forwarder normally pays these charges first and then passes them on to you, often with an administration fee added.

How free time and storage are calculated

Each operator sets its own rules, but most follow a similar pattern:

  • A free period starts when the cargo is available at the terminal, usually after the flight has been broken down and checked in. For imports, this is often measured in hours or a day or two. For exports, charges can begin if cargo is lodged well ahead of its flight.
  • Charges per 24 hours or part thereof. Once free time ends, a fee applies for each day or part of a day. Collecting cargo one hour into a new day can mean paying for the whole day.
  • A per-kilogram rate with a minimum. Fees are generally calculated on weight, with a minimum charge per air waybill per day.
  • Higher rates for special cargo. Dangerous goods, valuable cargo, live animals and goods kept in cold rooms usually attract higher storage rates and shorter free periods.

For exports, Qantas Freight's published schedule shows storage for general cargo applying from 23:59 on the day after check-in, with exemptions for freighter bookings and freight lodged less than 24 hours before departure. Rules like these reward good timing, so ask your forwarder when to deliver cargo to the terminal.

Terminal schedules change from time to time, and each operator uses its own definitions. Always check the current rates that apply to your terminal, cargo type and direction of travel.

The most common causes of storage charges

Customs clearance delays

For imports valued above AUD 1,000, a full import declaration must be lodged and any duty, GST and charges paid before the Australian Border Force releases the goods. If the commercial invoice is missing, the tariff classification is unclear or the values do not match, clearance stalls while the cargo sits in storage. Our beginner's guide to Australian customs for air freight imports explains what is needed.

Biosecurity holds

Goods that may carry pests or disease, including timber packaging, food, plant material and some used items, can be referred for inspection by the Department of Agriculture, Fisheries and Forestry. Inspection bookings, treatments and missing certificates can all add days.

Payment and paperwork

Cargo will not be released until freight charges, terminal fees and government charges are paid. Late payment, a missing delivery order or an unsigned authority can hold everything up.

Consignee not ready

Sometimes the cargo is cleared, but the receiver cannot accept it because the warehouse is full, there is no forklift for a heavy pallet or the site is closed on the weekend. Terminals do not pause the clock for these reasons.

Weekends and public holidays

Flights land every day, but customs brokers, depots and delivery teams may work reduced hours at weekends and on public holidays. Cargo arriving late on a Friday is a common source of storage charges, especially around Christmas and Easter.

How to avoid storage charges

  1. Send documents before the flight departs. Your broker should have the commercial invoice, packing list, air waybill and any permits or certificates before the cargo lands, so the declaration can be lodged early.
  2. Confirm the tariff classification in advance. For new products, agree on the classification with your broker ahead of the first shipment.
  3. Check biosecurity requirements early. Use the BICON import conditions database and make sure treatment certificates and packaging declarations are ready.
  4. Keep funds available for duties and GST. A deferred GST arrangement or a deposit account with your broker helps avoid payment delays.
  5. Book delivery as soon as the cargo is cleared. Agree on a delivery window with your receiving warehouse before arrival, especially for large or heavy shipments.
  6. Track your shipment actively. Knowing when the flight has landed and when cargo is available lets you act quickly. Our guide to air freight tracking tools for Sydney importers suggests useful options.
  7. Time export lodgement carefully. Deliver export cargo to the terminal close to the cut-off time your forwarder advises, not days in advance.

What if storage has already started?

If cargo is already incurring charges, act quickly. Ask your forwarder for the exact cause of the delay and what is needed to release it. In some cases, moving the cargo to a forwarder's depot with lower rates is cheaper than leaving it at the airline terminal. If the delay was caused by a carrier or terminal error, ask for the charges to be reviewed. Keep records of when documents were supplied and when the cargo became available, as these help if you need to dispute a fee.

Goods left uncleared for a long period can be dealt with under the Australian Border Force's procedures for unclaimed goods. This is rare, but it shows why responding quickly to clearance queries matters.

Building storage into your cost planning

Even well-run supply chains occasionally pay storage. A sensible approach is to include a small allowance in your landed cost model for new suppliers, new products or peak periods, then work to bring it down to zero as your process matures. When comparing quotes, ask each forwarder how they handle storage and whether they charge a handling fee on top. Our guide to calculating air freight costs shows where these fees sit in a full quote.

Import versus export storage

Storage rules usually differ by direction. For imports, the clock generally starts once the cargo has been unloaded, checked in and made available at the terminal. For exports, fees can apply if cargo is lodged well ahead of its flight or if a booking is cancelled and the cargo is left waiting. Transit cargo moving between two international flights has its own arrangements, which your forwarder manages with the airline.

Knowing which rules apply helps you plan. Importers should focus on getting clearance done quickly, while exporters should focus on lodging cargo at the right time.

Frequently asked questions

Can I negotiate storage charges?

Terminal schedules are usually fixed, but regular shippers with strong forwarder relationships can sometimes negotiate extended free time at depots. It is worth asking, particularly if your volumes are steady.

Do storage fees include GST?

Storage charges for Australian services generally attract GST at 10 per cent. Your invoice should show this separately.

Are storage charges the same for express shipments?

Express couriers usually manage clearance and delivery within their own network, so storage is less common. However, if clearance stalls because of missing information or unpaid duties, couriers can also apply holding fees.

Keeping cargo moving

Storage charges are rarely about the terminal. They are almost always a signal that something upstream was not ready, whether documents, payments or delivery arrangements. By preparing before the aircraft lands and keeping a close eye on your shipment, you can keep these fees off your invoices. For more on moving cargo efficiently through the city's airports, return to our Air Freight Sydney guide.