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Questions about DEMURRAGE, DETENTION and STORAGE

In the import and export container business, we often ask about DEMURRAGE and free container DETENTION, which are obviously different from each other. I feel that they are a scam set by the shipping company itself, which is a bit confusing.Here I specifically listed below, for you to do a reference:

DEMURRAGE is the period of time for which containers can be stored in a yard for free upon arrival at the port of destination. If a container is not picked up after this period, the shipowner will be charged for the delay.

And the free container period (literally "container making outside port") means the time from pulling the container out of the yard to changing the container back to the yard after the consignee picks up the goods. Similarly, if the free time is exceeded and the container is not picked up, then the overdue fee will be charged.

For the first two fees, the specific number of days can be applied to see the regulations of each ship company, even the case of the cargo on a single voyage and decided.Generally, long-term free boxes should be applied to the headquarters of the shipping company to be examined and approved, usually for 7 days, but some ports and shipping companies can also apply for 10 days, or 14 days, or even 21 days.

However, when DEMURRAGE applies to the shipping company, many ship owners generally will not approve it, because they have different definitions. There is no such word as DEMURRAGE, because they define DETENTION as termination from unloading the ship to returning the container to the yard.And often customers understand as DEMURRAGE storage fee, in fact, it is not.STORAGE charges are charged at the dock.Therefore, it is suggested that when booking space, the guest must confirm whether the ship owner who applies for 14 days of shipment has DEMURRAGE. If the shipping company says that DEMURRAGE cannot be displayed but DETENTION can be displayed, please confirm whether DETENTION is from the unloading of the ship to the return of the container to the storage yard.

Therefore, it is suggested that when doing business, we must make it clear in advance whether to do it or not, how many days to do it, so that we can confirm it before booking space with the shipping company, so as not to talk about it after the ship leaves, and the success rate is not guaranteed.

Here's a real example:

Some shipowners use 14-day container in and out of port

Combined detention and demurrage at destination shall be 14 total CALENDAR days excluding port storage.

or demurrage at destination shall be 14 days excluding port storage.

For other shipowners, 14 days container use

14 free time offer is combine which means consignee could use them in CY and out CY but any storage charge incurred Should be settled by the consignee with the port of authority.

The above is purely personal discussion, if there are different opinions more comments.

Demurrage & Detention is only available in Indonesia, Thailand and Vietnam for APL---- Routes in Southeast Asia, while demurrage is not available in other Southeast Asian countries

 
 
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