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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.
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.
Aug 28, 2023 · Demurrage and detention are separate but linked in the journey of your cargo. Demurrage charges always relate to the time a container is inside a terminal. Demurrage penalty fees/charges are used to prevent containers from being stored at the port for a long time.
Jul 8, 2009 · Detention relates to equipment (while the container is empty after unpacking or before packing) Lets see how it works.. Imports – A container is discharged off a ship on the 2nd July – Consignee approaches the shipping line to take delivery of the cargo around 12th July..
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.
Nov 10, 2023 · Detention vs. Demurrage: While both terms relate to additional shipping fees, they arise from different circumstances. Understanding these differences is crucial for efficient logistics management. Cost Implications: The financial repercussions of not addressing detention and demurrage can be hefty.
Mar 21, 2024 · When learning about demurrage, you must have heard of detention. In most countries, these two freight charges are classified as the same or often combined as one – collectively called demurrage and detention (D&D) charges.
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.
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.
Jun 5, 2024 · Detention and Demurrage are essentially delay charges that incur after the expiration of the container free time. Free time is the period of time that shipping lines allow their customers to retrieve containers from terminals and rail facilities free of charge.
