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Can you tell the difference between demurrage, port detention, free period and free period?

by:VIPUTRANS     2021-03-12
Generally, when shipping furniture internationally, freight forwarding companies will choose to ship by sea in containers. So far, containers are universal, regardless of size or model. Containers go through a series of operating procedures before shipping. We often encounter many professional terms, such as demurrage, demurrage, free period, and free period. Can you tell the difference? Today, the editor will give you a popular science about these professional knowledge. 1. Concept FREE DEMURRAGE: It refers to the free container use time, and the demurrage fee will be charged if it exceeds. This period depends on the regulations of different shipping companies. Free storage period (FREE STORAGE): refers to the time allowed for free storage at the terminal, and detention fees will be charged if it exceeds. There is an exempt period for container stacks at the terminal; this time depends on the regulations of the terminal. DETENTION: Refers to the cost of exceeding the free storage period. That is, the shipping company's box used exceeds the free box usage time, and the shipping company will charge you a demurrage fee. Generally speaking, it is calculated by the day. There is also a charge for box service. Generally, the free period is 7 days, depending on the shipping company's regulations. Demurrage (DEMURRAGE): also called storage fee, that is, the cost of exceeding the free storage period. It is collected by the port, and containers can be stacked on the dock for free for this period. Normally, it is 7 days, but in some ports, it is about 3 days, depending on port regulations. Under normal circumstances, it is distinguished and defined in the following ways: Export: Free container period: from the towing of empty containers to the return of heavy containers or the end of the dock; Free storage period: from the return of heavy containers or the terminal to the expected date of departure. Import: Free storage period: from the day of unloading to the end of the container leaving the dock; Free period: from the time the cabinet is taken out of the dock to the end of the day when the cabinet is returned to the dock yard. 2. Collection of demurrage fees on calculation date u003d start time-(cut-off time: 1 day)u003e detention period detention fees u003d start time-(cut-off time: 1 day)u003e demurrage period 3. The charging mode is in local currency Settlement, overdue is charged per counter per day. The longer the expiration date, the higher the daily cost. Example: Maersk small box (RMB), free for the first 7 days, 8-15 days, 55 yuan per day, 16-20 days, 150 per day, and 300 yuan per day after 21 days. 4. Matters needing attention The calculation method of demurrage fees and port detention fees. The calculation cycles of demurrage fees and port detention fees are not exactly the same. According to the situation of each port, some are calculated at the same time, that is, the port is added to the container, and some are calculated first, and then the container is used. In some ports, storage and containers are counted on the same day, and the overlap is 7 days. The demurrage fee can be exempted from the shipping company in advance. Generally, it can be applied for up to 14 days or even longer. Demurrage fees must be applied to the port terminal, and generally cannot be reduced or exempted. When returning the container, you should pay attention: the demurrage fee that we often talk about, everyone thinks that it will only occur in imports, but in fact it also exists in exports. For export, it usually takes 7 days. If the box cannot be boarded due to your reasons, the shipping company will charge you a demurrage fee if the time is exceeded. The import demurrage fee is more common, and the box can be used for free within N days after the ship docks. In other words, you must complete import customs clearance and arrange delivery in time after the ship arrives at the port, and return the empty container with the original goods to the location designated by the shipping company within N. Different shipping companies have different container-free periods. The above mentioned are ordinary boxes. TANK boxes usually take three days, and special containers such as freezers and frame boxes usually take about 6 days. Different shipping companies definitely have differences in details. If it is the customer's SOC (shiper own container), there is no demurrage fee. V. Frequently Asked Questions: How many days is the import exemption period? From which documents can you know? Answer: Taking Tianjin as an example, it usually takes 7 days, except for special containers. Specific to the shipping company. Generally it will be reflected in the release notice, and some will be shown on the bill of lading. But if you apply for a longer period of time, it will generally not be printed on the bill of lading. Q: For example, how many days can the cargo stay in the port without container for 7 days? Answer: The 7-day free container means that you can use the 7-day cabinet at the port of destination for free, and the 7-day free container means that your cabinet can be parked at the port of destination for free for 7 days. Q: How is the free period indicated in the bill? Answer: In the past, the customer requested a certificate when the bill of lading was issued. The format given is: 30DAYS FREE DEMURRAGE AT DESTINATION. This is the meaning of the free box period. That is, when your cargo arrives at the designated destination port with the container, there will be 7 days or 10-14 days of free use of the container by default. After the default time, if the cargo is still in the container, the shipping company will charge you for using the container.  Editor's summary: After the above summary of the editor, everyone has a certain understanding of the professional terms used in shipping, such as demurrage, port detention, free period and free period. Our multinational logistics customers must pay careful attention to these costs when shipping furniture, because these costs are closely related to your interests. VIPU Supply Chain International Logistics provides professional door-to-door double customs clearance international logistics services for people going abroad or returning home all year round. If you plan to ship furniture in the near future, please feel free to call our toll-free hotline.
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