What is detention charge shipping?
What Are Detention Charges in Shipping? Within the shipping industry, the terms “detention charges” and “per-diem charges” (or, “per day charges”) are often used interchangeably. These charges are assessed to the cargo owner when a container is not returned within a set number of days (free days).
What is the demurrage charge of container?
Demurrage: It is a charge raised when the full container is not moved out of the port/terminal for unpacking within the allowed free days offered by the shipping line. The charge is levied by the shipping line to the importer.
What is detention and demurrage?
Demurrage is charged when containers are still full and under the control of the shipping line, and have not been cleared through customs or picked up by the consignee. Detention: Costs incurred by a customer for using equipment beyond the given free time, typically outside of the terminal.
How is demurrage charges calculated in India?
Demurrage, Detention, and Port Charges calculation scenario
- Demurrage free days offered by the shipping line = 7 days.
- Detention free days offered by the shipping line = 10 days.
- Free days at port = 3 days.
How do you avoid detention charges?
Tips to Avoid Shipping Detention Fees
- Dispatch cargo as far in advance as possible. This gives the trucking company time to schedule the pick-up and/or delivery.
- Negotiate more time for live loads/unloads.
- Schedule your loading/unloading with the detention clock in mind.
Who is responsible for paying detention charges?
The shipper is generally responsible for demurrage charges, but the consignee also may be legally obligated to pay, depending upon who was at fault for the delay and which party was contractually responsible to pay freight or other charges.
How do you avoid container detention charges?
Have proper documentation readily accessible and pay duties in advance — specific to the geography or the materials in the container. Incomplete or not submitting the documents on time will result in unnecessary demurrage and detention costs. Secure customs clearance before the shipment’s arrival.
How are detention charges calculated?
In the calculation of Demurrage charges to the shipowner/port authority, the demurrage rate is multiplied by the number of days/part days over the agreed free days.
What is detention free time?
“Free time”: the period of time offered by the Carrier to the Merchant free of charge, covering both demurrage period and detention period, beyond which additional charges such as, but not limited to demurrage and detention charges, will be due to the Carrier.
Who pays detention and demurrage?
sea freight forwarders
Demurrage and detention charges during import Usually, the sea freight forwarders get a free time of 3-5 days after the container gets discharged. Mostly, the forwarders need to pay the demurrage in order to collect the cargo from the port.
Who is responsible for demurrage and detention charges?
What is the difference between demurrage and detention charges?
In these countries, “demurrage” refers to the time containers spend outside the port, while “detention” refers to the time spent on port grounds.
How is container demurrage calculated?
What is demurrage and detention cost at port?
In most South-American countries, the meaning of “demurrage” and “detention” is inverted! In these countries, “demurrage” refers to the time containers spend outside the port, while “detention” refers to the time spent on port grounds.
How do you reduce detention charges?
Top 5 Tips to Reduce Demurrage, Detention and Storage Charges
- Make Sure Your Cargo is Ready on Time to Reduce Detention Charges.
- Be Smart About Customs Clearance to Reduce Demurrage and Storage Charges.
- Use the Expertise of a Freight Forwarder.
- Demand Demurrage, Detention and Storage Information in Your Quotation.
How can you avoid paying demurrage and detention charges?
5 tips to avoid demurrage and detention charges
- Negotiate terms.
- Manage your schedule efficiently.
- Always have a plan B.
- Be well-prepared for local customs.
- Bring your own container.