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Do you know the costs associated with container terminals?

by:VIPUTRANS     2020-09-03
  The container terminal is the hub of water and land transportation, it is a buffer place for container cargo when changing transportation modes, and it is also the handover point of cargo, so do you know what are the related costs of container terminals?

Container terminal related expenses

Free container period (FREE DEMURRAGE): refers to the free container time, over which the demurrage fee will be charged, 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, and some ports are about 3 days, depending on port regulations.

Generally speaking, it is distinguished and defined in the following ways:


Free container period: from dragging the empty container to returning the heavy container or ending at the dock;

Free storage period: from the return of the heavy container to the yard or dock to the end of the estimated sailing date.


Free storage period: from the day of unloading to the end of the loading container leaving the dock; free period: from the time the cabinet is taken out of the dock to the day when the cabinet is returned to the dock yard.

Calculation date:

Collection of demurrage fee = start time-(cut-off time 1 day)> demurrage period

Collection of detention fee = start time-(cut-off time 1 day)> detention period

Charging model:

Settlement in local currency, overdue will be 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.


How to calculate demurrage fees and port fees

The calculation cycles of demurrage fees and port detention fees are not exactly the same.

Depending on the situation of each port, some are calculated at the same time, that is, the port is added, and some are calculated first, and then the container is used.

   There are also some ports where stockpiles 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.

Pay attention to when returning the box:

   The demurrage fee we often say is that 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.

  Import demurrage fees are more common, and the boxes 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 free container 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. There must be differences in details between different shipping companies.

  If it is the customer's SOC (shiper own container), there is no demurrage fee.
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