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How to distinguish between demurrage fee, port

by:VIPUTRANS     2020-09-03
What is the free period and the free period? How do demurrage fees and port detention fees arise? What are the differences and connections between these costs? In this issue, we briefly explain the common questions about demurrage fees, port detention fees, container free periods and free depot periods.



1. What is the demurrage fee, port detention fee, container-free period, and container-free period?

1. DETENTION: Refers to the cost of exceeding the free detention period. If you use the shipping company’s box for more than the free time, 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.

2. DEMURRAGE: also known as storage fee, that is, the fee for 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.

3. FREE DEMURRAGE: It refers to the free container use time. After this time, a demurrage fee will be charged. This period depends on the regulations of different shipping companies.

4. Free storage period (FREE STORAGE): refers to the time during which the terminal allows containers to be stored free of charge, after which a detention fee will be charged. This period depends on the regulations of the terminal.



Second, the definition of free period and free period

The container-free period and the free-deposit period are generally defined in the following ways:

1. Export:

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.

2. Import:

Free storage period: from the day of unloading to the end of the container leaving the dock;

Free container period: Calculated from the time the cabinet is taken out of the dock, and ends when the cabinet is returned to the dock yard.



Three, the calculation of expenses

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

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 yuan per day;

After 21 days: 300 yuan per day.



Fourth, the matters needing attention when carrying the suitcase

1. The demurrage fee that we often talk about, everyone thinks that it will only occur in imports, but 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.

2. Demurrage fees are more common in imports, and the boxes can be used free of charge 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 cargo to the location designated by the shipping company within N days.

3. 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.

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