In the past, it has always unexpectedly increased our costs, so how can we avoid spending this unnecessary money?
1. The meaning of detention in shipping
It is the cost incurred when a consignee picks up a cargo container at the terminal but does not return the empty container to the designated warehouse within a specified period of time.
This means that there are also free demurrage days allowed on the route, but if the consignee returns the container after this time, demurrage charges will have an impact.
What is demurrage?
Demurrage is a charge if the entire container is not removed from the terminal within the allowed number of free days provided by the shipping company.
In short, demurrage is the cost of storing a container until it is picked up and unloaded at the terminal.
2. The cost of demurrage and detention
The specific demurrage and detention charges vary from country to country, from terminal to terminal and from operator to operator.
However, the typical charge is per container per day.
This is how demurrage and detention charges are calculated.
These charges are therefore levied gradually, with the longer the container remains in port, the higher the charge.
In short, very expensive, especially for continuous and large container traffic.
This is why some importers are shocked when we talk about this at the beginning.
Look at the example of demurrage charges for APL to Sweden.
From the 8th to the 12th the cost is €30 per day per 20ft container, free for 7 days if you remember.
Then from the 13th onwards the charges are doubled.
This is a check tool for demurrage and detention charges between different shipping companies.
You can access the carrier’s official system to get the exact charges.
What is the free period for demurrage and detention charges?
Demurrage and detention charges are already widely used for container transport.
According to the United Nations Organisation for Trade and Development, shipping companies are obliged to provide a reasonable free period.
Idle time
Normally, the standard free demurrage period allowed by shipping companies on all routes is 7 days.
If there are a large number of containers or if the containers are unloaded at a transit port, your China freight forwarder such as us can request 7-14 days.
In some cases, 21 days can be requested
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How can I avoid demurrage and detention charges?
Given the high demurrage and detention charges, it pays to know how to avoid and reduce demurrage charges.
1> Plan ahead, book containers in advance and use reputable routes on your target route.
2> Make sure you have a large warehouse with sufficient storage capacity so that the container can be returned to the terminal in time once the cargo has been unloaded.
3> Change the port of transhipment or discharge in the event of port congestion. For example, you may want to unload in Tacoma or Oakland when the Port of Los Angeles is congested.
4> Track containers closely so that they can be cleared in time and picked up from the terminal when they arrive.
5> Negotiate additional unloading times. Remember to inform your freight forwarder to request a 14-day free demurrage period at destination for each full container shipment you make.
If you need assistance in booking slots and containers, please contact the TJ China freight team. We will try to avoid such unnecessary costs as mentioned above.
