CONTAINER DEMURRAGE AND DETENTION BLOG

In the container shipping industry, demurrage and detention

are two terms that often cause confusion and frustration for
both shippers and carriers. Both refer to charges that are
incurred when containers are held beyond the agreed-upon
free time, but there are some key differences between the two.

Demurrage refers to charges that are levied on the shipper by

the carrier when a container is held at the port beyond the
allotted free time. Free time is the agreed-upon period of time
that a container can remain at the port without incurring
additional charges. Once the free time has expired, the carrier
will charge the shipper a demurrage fee for each day that the
container remains at the port. Demurrage charges can quickly
add up, and it is important for shippers to be aware of the free
time and plan accordingly to avoid incurring these charges.

Detention, on the other hand, refers to charges that are levied

on the consignee by the carrier when a container is held
outside the port beyond the allotted free time. Free time for
detention is typically longer than free time for demurrage, as
consignees often need more time to unload the container once
it has been delivered to their facility. Once the free time has
expired, the carrier will charge the consignee a detention fee
for each day that the container remains outside the port.

The purpose of both demurrage and detention charges is to

encourage shippers and consignees to quickly move containers
in and out of ports and facilities, thereby reducing congestion
and improving efficiency. However, these charges can be a
significant source of frustration for shippers and consignees,
particularly when unforeseen circumstances arise that delay
container movement.

In order to avoid demurrage and detention charges, shippers

and consignees should closely monitor their container
movements and plan accordingly to ensure that containers are
moved in a timely manner. It is also important to communicate
with the carrier in the event of any unforeseen circumstances
that may cause delays.

In conclusion, demurrage and detention charges are an

important aspect of the container shipping industry, designed
to promote efficiency and reduce congestion at ports and
facilities. However, they can be a significant source of
frustration for shippers and consignees, and it is important for
all parties to closely monitor container movements and plan
accordingly to avoid incurring these charges.
PREVENTION FROM DEMURRAGE AND DETENTION
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In the container shipping industry, demurrage and detention

charges can be a significant expense for shippers and
consignees. However, with careful planning and attention to
detail, it is possible to avoid or minimize these charges and save
money on container movements.

Here are some tips for saving on demurrage and detention

charges:

Know your free time: It is important to know the free time

allotted by the carrier for both demurrage and detention. This
information should be included in the shipping contract or
obtained from the carrier directly. Knowing your free time will
help you plan your container movements and avoid charges for
exceeding that time.

Plan ahead: Planning ahead is crucial to avoiding demurrage

and detention charges. Make sure you have all necessary
paperwork and approvals in place before the container arrives
at the port or facility. Schedule the delivery of the container to
your facility so that it arrives within the free time period, and
make sure you have adequate resources in place to unload the
container quickly.

Communicate with the carrier: Communication with the carrier

is important to avoid demurrage and detention charges. If
there is a delay in the container movement, inform the carrier
as soon as possible. The carrier may be able to extend the free
time or provide alternative solutions to avoid additional
charges.

Optimize your container movements: Consolidating multiple

shipments into one container, using intermodal transport
options, and optimizing container utilization can help you save
on demurrage and detention charges. By reducing the number
of containers you need to move, you can reduce the risk of
exceeding free time and incurring charges.

Use technology to track container movements: Technology

such as GPS tracking and automated notifications can help you
stay on top of your container movements and avoid demurrage
and detention charges. These tools can provide real-time
updates on the location of your container and alert you to any
delays or issues that may result in additional charges.
In conclusion, demurrage and detention charges can be a
significant expense for shippers and consignees in the container
shipping industry. However, with careful planning,
communication, and optimization of container movements, it is
possible to avoid or minimize these charges and save money.
By knowing your free time, planning ahead, communicating
with the carrier, optimizing container movements, and using
technology to track container movements, you can reduce the
risk of incurring demurrage and detention charges and save
money on your container movements.