![]() ![]() ![]() Unfortunately, such delays are very common. A detention charge comes into play if the container isn’t returned empty to the shipping line within the free days. You pay a detention charge for the delayed use of the container outside a terminal. Demurrage charge comes into play if the full container isn’t moved out of the terminal to be unpacked within the free days. You pay a demurrage charge for the delayed use of the container within a terminal. But the difference between the two charges depends on the location of the containers at the time of the delay. It’s true that conceptually both are essentially ‘late fines’ for the return of containers. Most people confuse demurrage and detention fees to mean the same. Know the difference: Detention vs demurrage Now, let’s understand the difference between demurrage and detention charges. Working as an incentive for the customers to return empty containers and have a fast turnaround.Compensating the shipping line for the use of its container.In principle, demurrage and detention have two main purposes: These charges are usually calculated on a per-day basis. If you fail to return these containers within the free days, the shipping lines start charging late fees called demurrage and detention. In conventional shipping, the free days are often somewhere between 3-5 days after the container has been discharged from the vessel. The free days determine the number of days a shipper can use the container for free. These containers are called carrier-owned containers (COCs).įor shipping lines to turn around their containers, shippers need to return these COCs within a stipulated time called ‘free days’. We know shipping lines provide containers to their customers for door-to-door transportation of their goods. What are demurrage and detention charges? Who is responsible for detention charges?.Get SOC containers on xChange without any commission.How to prevent demurrage and detention charges?.Detention and demurrage charges by popular shipping lines.Top 10 cheapest ports for demurrage and detention. ![]() Top 10 most expensive ports for demurrage and detention.Increase of detention and demurrage charges in recent years.What drives demurrage and detention charges?.Know the difference: Detention vs demurrage.What are demurrage and detention charges?.They’ll answer all your doubts and queries. Or, click on the banner below to hear it directly from our experts. But you can also simply cut to the chase and get a quick lowdown of how xChange can help you avoid these expensive fees with shipper-owned containers (SOC). We’ll see what impact these disruptions have had on demurrage and detention charges in 60 ports across the world. And even more with disruptions like the COVID-19 pandemic, the Russia-Ukraine war, and the US labor crisis skyrocketing these fees! But today, they are quite common and can easily exceed $100 per container per day. But for shipping lines, they ensure the efficient use of their containers. Such high charges may be “unjust and unreasonable” for freight forwarders. They continue to add up every day on a per-day basis till you deliver the containers back to the shipping lines. In short, you pay demurrage and detention charges when you exceed the use of containers. Charged by shipping lines, these surcharges have become one of the most controversial topics in the shipping industry in recent years. Know how much demurrage and detention charges you’ll pay and how to avoid them with xChange.įreight forwarders and shippers are no stranger to the dreaded demurrage and detention charges. Read this blog to get a complete overview of these notorious surcharges. Demurrage and detention charges have drastically increased in recent years. ![]()
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