Demystifying Demurrage, Detention, and Storage Charges in International Logistics: Understanding Differences and Managing Costs

In the field of international logistics and transportation, Demurrage, Detention and Storage are terms that are often mentioned. These charges are related to the detention of containers in the freight transportation process. Despite their similar names, they each have different meanings and collection conditions. The purpose of this article is to differentiate between these charges and to help understand the differences between them.

1. Demurrage

Demurrage, also known as Demurrage, is a charge for the overdue use of a container while it is under the control of the carrier or its agent. This usually occurs when a container is used beyond the free period at the destination terminal or yard before the consignee completes customs clearance and picks up the goods. Specifically, the timeframe for demurrage charges begins when the container is unloaded at the terminal and continues until the cargo is cleared and raised from the terminal. If this time limit is exceeded,perkhidmatan penghantaran the shipping line will charge demurrage to the responsible party.

2. Detention

Demurrage, also known as Detention, refers to the cost of overstaying a container while it is in the possession of the consignee. This usually occurs when the consignee clears customs and takes the container out of the yard or terminal, but fails to return the empty container to the shipping line within the specified time.logistics news today The time limit for demurrage is calculated from the moment the container is raised from the terminal until the box is returned to the port area. Beyond this time limit, the shipping line will charge the consignee.

3. Storage

Stowage charges, also known as Storage, relate to the costs incurred while a container is stowed at the terminal. Unlike demurrage, storage charges are collected by the port rather than the shipping line. The time frame for storage charges also starts from the time the container is unloaded at the terminal until the cargo is declared and lodged at the terminal.

4. Demurrage

Demurrage and Detention are charged by shipping lines or container owners. There may be differences in rates between different shipping lines, but in the same port, the differences are usually not too great. Storage charges, on the other hand, vary from country to country and from port to port, especially in the United States, Europe and India, where seaports and inland ports charge different rates. Therefore,ship cost it is important to know the specific charges to avoid unnecessary costs.

5. Free Demurrage, Free Detention and Free Storage

Free Demurrage refers to the period of free use of containers inside the terminal, beyond which demurrage will be charged, Free Detention refers to the period of free use of containers outside the terminal, beyond which demurrage will be charged, and Free Storage refers to the period of time during which the terminal is free of stowage charges, which starts from the time the containers are unloaded onto the terminal until they are picked up. Free Storage is the free period for storage charges at the terminal.

Among them, Free Demurrage and Free Detention, as part of demurrage, are generally set by the shipping line for a free period of about 7 days. In some ports, due to transshipment or other reasons, it is possible to apply for an extension to 10-14 days, or even 21 days, but this usually requires special circumstances or stable customer relationships.Free Storage, as a stacking fee charged by the terminal, is generally free for a period of 5-7 days, and it is usually more difficult to obtain an extension.

In summary, while demurrage, demurrage and stacking fees are all related to the overdue use of containers, they each have clear definitions and application scenarios. Understanding the difference between these fees can help to better manage time and costs in international shipments.