DEMURRAGE & DETENTION FREE TIME
There are many shipping terms within Transportation that can be quite confusing. “Demurrage” and “Detention” are two of the most common culprits within the ocean container shipping industry. Both refer to “free time” that can result in extra fees charged by the steamship line to compensate for the lost opportunity and use of their ocean containers.
Demurrage (on dock):
Origin Description: The number of days from when the full container is returned to the terminal for export to when the container gets loaded onto the vessel.
Destination Description: The number of days from when the unit is offloaded from the vessel to when the container is picked up from the terminal by the delivering haulage company.
Detention (off dock):
Origin Description: The number of days from when the empty container is pulled from the terminal for loading to when the full container is returned back to the terminal for export.
Destination Description: The number of days from when the container is picked up from the terminal by the delivering haulage company to when the container is returned back to the terminal empty.
Combined Demurrage & Detention:
Origin Description: The number of days from when the empty container is pulled from the terminal for loading to when the full container is loaded onto the vessel for export.
Destination Description: The number of days from the date the unit is offloaded from the vessel to when the container is returned back to the terminal empty.
Port Storage:
Some terminals in certain countries also charge port storage which is settled directly between the operating terminal and consignee.
How can additional fees and charges be assessed? Once the amount of free days allowed have been exhausted, there will be an additional charge per container per day thereafter. Free time is accounted for by either Calendar Days or Working Days. Tariff amounts and charges will vary per steamship line.