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Mar 8, 2022 · Demurrage and detention are two terms in trade, freight shipping, and logistics that often confuse people in the industry. The terms seem similar as they relate to freight fees that compensate ports and facilities for storage when cargo is delayed.
Aug 28, 2023 · Detention refers to the time a container spends outside of the port. If the consignee holds on to the carrier's container beyond the allowed free time, detention fees will be imposed. In other words, a detention charge is applied when the container has not returned to the carrier on time.
Jan 11, 2021 · Demurrage is the recovery of costs incurred for delay of the container within the port, charged by the shipping company or the party that has leased the container. Container leasing is a booming 5.5 billion Dollar industry that leases cargo containers to their customers and manages a fleet of containers for them.
Demurrage and detention are incredibly important terms that often lead to abandoning of container ship cargoes if the costs and meaning are not fully anticipated – so we’ve put together a quick guide outlining what these terms mean and why they’re important to understand.
Jul 8, 2009 · Demurrage and Detention in the context of container shipments.. Demurrage relates to cargo (while the cargo is in the container) Detention relates to equipment (while the container is empty after unpacking or before packing)
Mar 21, 2024 · Discover the difference between demurrage, detention, and per diem charges. Learn how to optimize your shipping and prevent costly delays!
Nov 10, 2023 · Explore shipping fees with a guide on container detention and demurrage to understand their impact, causes, and strategies to mitigate charges.
Demurrage: This pertains to the duration filled containers linger within the terminal. The timeframe commences when they are offloaded from the vessel or train and concludes upon their retrieval from the port (gated out). Detention: This denotes the period containers remain outside the terminal.
Jun 30, 2023 · The “penalty” is demurrage, referred to as liquidated damages, payable for the detention of the ship beyond laytime allowed. In view of the breach element, exceptions to laytime do not apply when the ship is on demurrage because a party in breach cannot take advantage of its own breach.
Mar 27, 2019 · Definition of Demurrage, Detention, Demurrage and Detention Combined, and Free Time. Demurrage and detention both refer to fees incurred by importers and exporters alike when containers are either not picked up or dropped off within the appropriate amount of time.
