By What are the demurrage charges?
Demurrage refers to the charge that the merchant pays for the use of the container within the terminal beyond the free time period. Containers are either owned or are leased by shipping lines who provide them to their customers (shippers or merchants) for the safe and fast door to door transport of their goods.
How do you fight demurrage charges?
Tips to Avoid or Reduce Demurrage Charges
- Pre-clear your cargo and issue delivery instructions to your inland carrier in advance.
- Have a trucker “back-up” plan.
- Request extended free time.
What are detention fees?
Detention: Costs incurred by a customer for using equipment beyond the given free time, typically outside of the terminal. Detention is charged when the carrier’s equipment is still in use by the shipper or consignee beyond the LFD, regardless if full or empty.
How are container detention charges calculated?
The other numbers you need to calculate the charges are:
- Number of free days: 5.
- Days in total charged with detention and demurrage: 20.
- The rate on 20ft on the first 10 days: 60,00.
- The rate on 20ft after the 10 days: 120,00.
Who is liable for demurrage charges?
Only the owner of the goods or person entitled to the goods is liable to pay storage or demurrage charges to the port trusts and not the ships or its agents known as steamer agents, the Supreme Court has ruled in a judgment that settles a long-standing conflict within the shipping industry over the matter.
How is demurrage calculated?
How are demurrage 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.
Who is responsible for demurrage charges?
How do you avoid 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.
What is difference between detention and demurrage?
Demurrage is when the container is full and on the terminal after the free period is over while Detention charge is levied when the consignee retains the carrier’s container outside the port, terminal, or depot beyond the allotted free time.
What causes demurrage?
Although, the most common reasons of demurrage are trigged by a shipper’s actions: Delay in payment. If the shipper paid for only part of a shipment, the vessel can refuse to release the freight until paid in full. Any delay in payment will lead to cargo detention at the port, which in turn causes demurrage charges.
Is demurrage the same as storage?
DEMURRAGE becomes: “the charge applicable for the use of the Equipment (not space), after the free time expires.” STORAGE becomes: “the charge applicable for the use of the space at the terminal (so now includes also terminals along with Rail Depot and warehouses), after the free time expires.”