demurrage charge

Whereas Demurrage/Storage is the charge levied by the port on the shipping line (since they have the account with the port) if the container is not moved out of the port within the specified free days offered by the port.. “Combined Demurrage & Detention” (also called merged D&D): is the charge related to the use of equipment only, the Merchant pays for carrier’s equipment kept beyond the free time offered by the Carrier, when Demurrage and Detention is combined into one single period. Version | These charges cover the usage of storage space occupied by the container on terminal grounds, inside a warehouse or at the container yard. The Working Group Sea is pleased to provide best practice recommendations that National Associations and freight forwarders can use to argue their case in commercial disputes.”, FIATA hopes the guide can provide orientation to its members and all stakeholders as to which conditions are adequate.

Reliance upon any such advice, opinion, statement, or other information shall also be at the User's own risk. Detention is billed per container and per day, and the charged amount will vary per location, carrier and container type. Pre-clear your cargo through customs if you can. It is understood that shipping lines have been suffering in a very tough business environment and do everything they can to develop revenue streams that are not necessarily derived from freight. For demurrage, providers have to offer a reasonable free-time period in all instances.
The shipping line in turn recovers this cost from the consignee.

Be Smart About Customs Clearance to Reduce Demurrage and Storage Charges, 3. International Federation of Freight Forwarders Associations (FIATA) works as a non-governmental organisation, with the main object to represent, promote and protect the interests of international logistics and freight forwarding industry. In this context, one also must keep in mind the significance of container shipping for the global supply chain, as reported in the UNCTAD Review of Maritime Transport 2018[ii] container shipping accounts for 24.3% of total dry cargo shipments in 2017.

There are indications that shipping lines abuse the charging of demurrage and detention to maximise profits. Demurrage and detention charges have been widely used in container shipping. In case of booking cancellation, no free time is applicable.

During the export phase, demurrage starts when the container enters the port terminal, and ends when it is loaded onto the ship or when the ship departs. Because the cost for using the container during the door to door transport is included in the freight, it is essential for shipping lines to turn around their containers as fast as possible. Just follow the guide…, Download our Demurrage, Detention and Storage Charges Infographic. The ocean carriers decide on the effective end of the demurrage period, depending on the container’s type and location. Demand Demurrage, Detention and Storage Information in Your Quotation. Considering that unloading a ship typically takes 2 to 3 days, but may take up to a week in exceptional circumstances, it goes without saying that this seemingly small difference greatly impacts the final price of the bill. When does free time start and how many days does it really last? In the best practice document, FIATA acknowledges that demurrage and detention charges are a valid and important tool for shipping lines to ensure that their equipment is being returned as fast as possible and users exceeding the contractual duration of use should be charged accordingly. En poursuivant votre navigation sur ce site vous consentez à permettre l'utilisation de cookies tiers. Detention. Information Sharing Communities for Digitally Enabled Supply Chain Visibility, Transparency and Traceability can support the fashion industry's post-COVID recovery toward resilient and sustainable value chains, Demurrage and detention charges in container shipping, UNCTAD - Palais des Nations, 8-14, Av. Ensure that demurrage and detention charges on import shipments are charged much faster, ideally within a week. The cost of demurrage and detention, along with their respective free time, should be clearly indicated in your quotation.

In this context, the FMC (Federal Maritime Commission of the United States) started an investigation referred to as “Fact Finding 28”. These factors influence the amount of free time customers can enjoy. Demurrage and detention charges have been widely used in container shipping. This investigation is focused on “the practices of vessel operating common carriers and marine terminal operators related to detention and demurrage charges.” The Commission undertook this investigation because of a petition and testimony from a coalition of shippers, intermediaries, and container transport interests.

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