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How are demurrage and detention charges calculated

Free container renting and stacking of Basenton logistics containers

When the container volume is large or the destination is far away from the unloading port, customers usually require a sufficiently long period of container-free and storage-free when booking. I just know that exempting cabinets is easier, and exempting heaps is relatively difficult. What is the difference? Let me share with you here.

DEMURRAGE: refers to the container overdue (overdue) usage fee for the container under the control of the carrier or its agent. It usually refers to the overdue usage fee for the container at the destination terminal or yard before the consignee clears the goods.

Free container renting and stacking of Basenton logistics containers

DETENTION: Refers to the overdue (overdue) usage fee of the container under the control of the consignee, that is, the consignee brings the container to the yard or terminal after customs clearance, but does not return the empty container within the specified time.

Free Demurrage & free detention both refer to demurrage fees. The difference between the two is:
Free Demurrage: Calculate from the time the container is unloaded to the dock until the container is taken out of the dock;
Free Detention: The calculation of the container starts from the time when the container is proposed to the terminal, and ends when the empty container returns to the terminal;
There is also a Free storage (free storage period): This is the terminal storage fee, which starts from the unloading of the container to the terminal and ends with the removal of the container.
Among them, Free demurrage & detention is charged by the shipping company because it is a demurrage fee. Normally it is about 7 days. In some ports, due to transit or other reasons, you can apply for 10-14 days, and longer can apply for 21 days;
Free Storage is a storage fee charged by the terminal, usually within 5-7 days, and it is usually difficult to apply.
The difference between FREE TIME, FREE DEMURRAGE and FREE DETENTION:
After the research network analyzes and summarizes, the more accurate references are as follows:
1. The rent-free period of the container in the terminal after the goods arrive at the port: Free Demurrage;
2. The rent-free period when the container is towed out of the terminal after the goods arrive at the port: Free Detention;
3. The free storage period for containers to be stored in the terminal: Free Storage.
Demurrage and Detention
The demurrage period is calculated form the date of discharge of full container up until the date the full container is clearedout of port, after deducting the standard free time.

The detention period is calculated from the date the full container is cleared out of port up until the date the container is returned empty by the consignee to the carriers stack in port.

D&D (Demurrage & Detention) demurrage, its related noun is
Free Time (free period).
The Demurrage free period starts on the date the goods arrive at the destination;
The Detention free period starts from the date when the consignee picks up the heavy box.www.basenton.com

Beyond the corresponding free period,
.If the consignee has not yet picked up the cargo, it should be delivered to Demurrage according to the shipping company’s regulations;
.If the consignee has not returned the empty container, it should be handed to Detention according to the shipping company’s regulations.

Whether Demurrage free 7 days is enough, mainly depends on the speed of import customs clearance procedures,
Whether Detention free 7 days is enough, it mainly depends on how fast the box returns to empty,
The two are not alternatives, we should strive for it at the same time!

Free dention and free demurrage refer to the cabinet groups on and off the court. The cabinet belongs to the shipping company, so you can apply for it. Both terms are related to cabinet rent, but not related to the cabin rent. Both are fees charged by the carrier. The difference is:

General customers in Indian ports require more FREE DETENTION because customers want to transport containers to inland points and require more container usage; this does not mean that it is impossible to apply for “FREE DEMURRAGE” in India.

How is the cabin lease (overdue terminal storage fee) expressed in English? If the container is overdue in the port of destination terminal or yard, how to apply? ———storage? Apply for “free storage” or “FREE TIME” = “FREE STORAGE” + “FREE DEMURRAGE”, but the general shipping company will not give it, because the “STORAGE” is to be paid to the terminal. If it is exempt, the shipping company will have to pay for it. Up.

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