But there are ways to keep such instances to a minimum. Phone/WhatsApp: +234(0)9075526276 Email: info@clearingandforwardingnigeria.com fanigray@gmail.com. Thanks for reading this article. What really do the terms demurrage and detention mean? Some resources are not available on server temporarily. The trucking or drayage company bills you for the so-called detention of their trucker or driver in cases. Once they lose track of that, that is when mistakes happen. Well, this article will define how demurrage, detention, and other port charges work in international trade. News and Insights to help you ship smarter, Service Updates to alert you to severe weather and events impacting operations, Promotions and Offers to help you get the most for your money, Product News to keep you up-to-date on new services, tools, and features. “We’ve seen containers where mistakes have happened over an email,” explains John Taddeo, New York brokerage manager at UPS Customs Brokerage. The question of who pays what in international trade is a function of the trade rout followed. Sorry, you have Javascript Disabled! To see this page as it is meant to appear, please enable your Javascript!

“They now want credit card payments, not checks or guarantee letters that could hold things up. See instructions. That includes ports, airline terminals, rail facilities or a bonded warehouse. But what about those factors that are apparently outside of your control? The 2020 shipping peak season brings new challenges for shippers and will raise, even more, question marks than previous seasons.

However, for purposes of understanding and technicality, both terms are distinguishable. What really do the terms demurrage and detention mean? Managing imports and exports is easier with UPS® technology. Again, what are other port charges? After your free time runs out, you will be charged demurrage fees for each additional day. In general, shipments arriving by rail or air are given 48 hours of free time.

Unlike demurrage detention means that container is already out of port terminal, but could not be returned to the bay within free days. Once your shipment has left its origin, keep close tabs on its progress to avoid surprises. Read Also: TERMINAL HANDLING CHARGES, SHIPPING COMPANY CHARGES. These terms of shipping delay charges are often (and incorrectly) used interchangeably. When it comes to calculating demurrage, every vendor, terminal, warehouse and container station has its own policy.

That’s regardless of whether you ship one container every now and then, several per month, or more than ten per day. The storage fee compensates the facility for the use of their space and equipment, i.e. Thus, the terms have international application. If you just assume your container is going to get delivered to your door, a lot can go wrong.”. Here’s an example of demurrage fees: You have 7 days of free container usage. Discover tech options that facilitate global shipments and help them reach their destination on schedule. Along with demurrage, detention is another charge that you’ll want to try to avoid by planning ahead. For regular containers arriving by ocean, free time runs about four days, with less time given for open top or special containers.

“All importers need to have some kind of system to make sure that everything is being done for them the quickest it can possibly be done,” advises Taddeo. So, whenever you’re shipping containers, it’s important to understand the demurrage policies in force along your transit route.