A diversion charge refers to the cost associated with diverting cargo from its original intended destination port to a new location. This charge may be applied when unforeseen circumstances, such as port congestion, labor strikes, or other disruptions, require a change in the route of a shipment to ensure timely delivery.
A diversion charge is typically imposed by shipping companies, freight forwarders, or other logistics service providers to cover the additional expenses involved in rerouting cargo, such as extra fuel costs, port fees, or administrative charges. It is essential for shippers to understand the potential for diversion charges and factor them into their supply chain contingency planning to mitigate any unexpected costs.

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