How to avoid demurrage Charges in letter of credit?

 Below the 3 ways to  avoid demurrage Charges in letter of credit?

1-Reduce Time period for Presentation in LC:

Depending on the country you are importing from. Sailing period varies from country to country and distance between those country. Try to Negotiate and agree to reduce the presentation period. Usually, 21 days is the standard presentation period. Reduce it based on the transit period of the shipment. Below website will help you to calculate days required in transit

Below is the Clause appear in the LC swift:

PERIOD OF PRESENATION:DOCUMENTS MUST BE PRESENTED WITHIN 15 DAYS FROM THE SHIPMENT/DELIVERY BUT WITHIN THE VALIDITY OF THIS CREDIT.

 2-Bill of lading Free time clause:

Ideal free time in Port is usually 5 days from the shipping line. your supplier can negotiate with the carrier to provide free days in port. This needs to be mentioned under additional condition in the LC application and the same will appear in the LC swift under clause 47A as below:

3-Shipping Guarantee from Bank:

If your shipment has already reached the port and the documents has not arrived yet in the bank, you can request the bank to provide the shipping guarantee to release the shipment, this will avoid your demurrages being paid until the arrival of the documents

Shipping guarantee is written guarantee for picking up the goods in advance, which is issued by the bank to the shipping company upon the request of the customer (importer),but keep in mind the following conditions 

1.The importer is required to pledge to the bank issuing the shipping guarantee that the documents would not be rejected no matter whether or not there are discrepancies.

2.When the original Bill of Lading arrives, the importer is required to substitute the Shipping Guarantee with bill of lading at the shipping company and return the shipping guarantee back to the issuing bank for cancellation.