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  • May 31, 2022

What is Demurrage & Detention?

Are you also confused between Demurrage & Detention? Let Fulcrum Shipping & Logistics help you in understanding it and save your business. The Shipping Industry, Freight Forwarders, Importers and Exporters have often heard these important terms concerning the charges or fines of Container.
Demurrage is a fine levied by the freight forwarder or the shipping line if the consignee fails to take their Cargo from the Port or Terminal within the agreed time. Often consignees are allowed to store goods or Containers for a number of “free days”, after which demurrage charges are applied as per the fixed-rate & for the number of days delayed. Every day high volumes of goods are shipped at port & terminal hubs, but the stagnant containers take up the space & affect the operations. Demurrage Charges are often seen as storage fees – which stimulates the consignee to move their Cargo quickly or avoid them bringing it to the Ports early. Demurrage commences at the time of exporting, from the arrival of the container at the port to the loading on the vessel. And at the time of Importing, it begins from the time the container is unloaded from the vessel to the departure of the container from the port.

Detention & Demurrage are often confused with each other, as these are container charges. Detention is the charge levied by the shipping line or freight forwarder for not returning the empty container to the Port or Terminal within the agreed time.The timestarts after the Containers are unloaded from the vessel. It is also charged if the ship is delayed by the charterer or 3PL.Detention at exporting’s end begins from the time when the empty container is first collected from shipper or freight forwarder &until returned to the port with filled Cargo. At the time of importing, it is applicable when the loaded container is transported outside the port to the time the empty container is returned to the shipper or freight forwarder.

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Containers are either owned or leased by the Freight Forwarder or Shipping Lines for fast, secure and safe Door-to-Door services. It is an obligation for the freight forwarders & shipping lines to offer a sufficient free period during which no demurrage & detention is charged.Free time for Demurrage & Detention is different as per the Cargo type.

The fee is used as –

  • -Charge for using the Containers of the Company
  • - Compensation for the claim of damage on the Charterer’s caused by delays
  • - Penalty or Fine
  • - Encouraging Consignee to return or move the container after the usage

Fulcrum Shipping & Logistics can help you to avoid these charges by –

  • -Hiring professionals like us & efficient custom agents to avoid documentation errors during the operations.
  • - If the Cargo is being delayed then the consignee can request the shipper to give extra days for loading or unloading.
  • - The Consignee should not hesitate to negotiate with the agents to partially or completely waive off the charges.
  • -It’s mandatory for the consignee to specify the request of relaxation in the charges of demurrage or detention, which is necessary for a clear understanding between both the parties.

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