Do you know what demurrage and or detention mean?

Are you familiar with the causes of demurrage and detention?

If no, you need to first read Causes of Demurrage and Detention, and if yes, then you need to know how to avoid demurrage and detention.

Demurrage is the fee charged when import containers are still full and under the control of the shipping line. It is incurred when the container has not yet been picked up by the consignee, and the free time for pick up set by the ocean line has expired for the container. It can also be charged after the loaded export container has been returned to the possession of the steamship line but cannot be shipped out due to non-carrier related errors (e.g. failure to provide relevant export documentation) once the allotted free time has expired. So, additional fees for extra storage period would be incurred until container is shipped.

Detention on the other hand, occurs when the consignee holds onto the carrier’s container outside of the port, terminal, or depot beyond the free time that is allotted. In other words, it is charged when import containers have been picked up, but the container (full or empty) is still in the possession of the consignee and has not been returned within the allotted time. For instance, if a period of 5 free days is provided to return an empty import container to the steamship line after pick up, but the consignee takes 7 days to return this container, the steamship will charge for 2 days of Detention. For export, detention is the charged when an empty container has been picked up for loading, and the loaded container is returned to the steamship line after the allotted free time.

In order to avoid both demurrage and detention charges, click here.