Difference between Demurrage and Detention

Demurrage and detention are two terms that often confuses people in global trade, shipping, freight and logistics.. This has also lead vĩ đại several financial losses many a time.. Is there a difference between demurrage and detention..

Demurrage and Detention in the context of container shipments..

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Lets see how it works..

Imports – A container is discharged off a ship on the 2nd July – Consignee approaches the shipping line vĩ đại take delivery of the cargo around 12th July.. Working off a standard 7 miễn phí days from date of discharge, the line miễn phí days (different vĩ đại port miễn phí days) expires on the 8th July.. So, the line will charge the consignee DEMURRAGE for 4 days from 9th vĩ đại 12th July at the rate fixed by the line..

After the full container has been picked up by the client, for example if they take another 7 days vĩ đại return the empty container, then it is known as DETENTION which again will be charged at the rate fixed by the line..

So basically before the full container is picked up, Demurrage is charged (after expiry of miễn phí days) and after the container has been picked up, till the time the empty is returned vĩ đại the lines nominated depot, Detention is charged..

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Exports : In the case of exports, normally lines give about 5 miễn phí days within which the shipper has vĩ đại pick up the empty, pack it and return it full vĩ đại the port.. In case of delays more than thở 5 days, the line charges Detention (generally same tariff as import detention) for the days that the empty is kept with the client as empty or full..

Once the container is packed and say for example the shipper is unable vĩ đại ship the same due vĩ đại any reason, then the Demurrage will be charged at the rate fixed by the line till the full container is shipped out..

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What I have mentioned above is the generic and most common khuông of use of these two terms.. There however is a difference in the usage of these terms by various shipping lines in various countries..

Some countries gọi it combined demurrage/detention in some countries, whereas in some countries it is shown separately.. In yet some other countries lượt thích Saudi Arabia and nhật bản, the term demurrage seems vĩ đại be used vĩ đại denote storage in the port/lines terminal..

Best option would be vĩ đại kiểm tra with the shipping line in your country how these terms are defined..

How are these terms handled and dealt in your country..?? Please vì thế share for the benefit of all..