And count the free days from that point of time. In some countries, specially in Argentina and Brazil, they are “charging” up to USD 40k per cargo holds approvals (Customs, unions, surveyors) you either pay or stay ballasting per another 10 days.. for what I know is usually paid by the captain with the money they hold in the safe.. but after that I don’t how it goes btwn charterers and shipowners .. can you please elaborate? Charges will be levied on the “gross weight” or the “chargeable weight” of … Progressive means: for customers with special deals, after the extended free time expires, any additional days will be subject to the demurrage and detention charges as per the relevant day count in our tariff tier structure. There could however be cases where the consignee could not clear the container because they didn’t receive the relevant documents from the shipper in time.. Hi Abe, lines charge dem/det only on their containers.. In that case is there any extra cost I’ll need to pay due to the delay caused by other importer? If vessel arrives as 11.00pm that day is counted in free days time. You can calculate container, box, or pallet freight shipping costs with our freight rate calculator. This free days is different from the “port free days” which is the number of days allowed by the port/terminal to keep the containers in the port/terminal area free, after which the port storage as published in the port/terminal tariff will apply.. You can calculate container, box, or pallet freight shipping costs with our freight rate calculator. Who Charges the Demurrage and Detention/Warehouse Fee: Carrier. I agree with your call for supporting the shipping lines as it is in the trader’s own interest – generally, but 10 days demurrage @ 220/day as per your example … there are times and places that the demurrage even exceeds the new build costs of a container. The Shipping Container types: A Quick Guide, Compare freight quotes and freight services from. Days in total charged with detention and demurrage: 20. Copyright 2011-2020 Freightos (Tradeos, Ltd) |, Privacy Policy | Master Services Agreement | Copyright & IP Policy. There are many entities involved in the process of shipping a container from Point A to Point B, each with their own cost component, all of which have to be covered either by the seller or the buyer.. Demurrage, detention and port charges are just some of these costs that may be applicable in a shipment.. So you can imagine why the trade is also upset and they also may have a case against demurrage and detention on this.. In such cases, the consignee would look to the shipper for compensation, but for the shipping line, this is revenue lost and they need someone to pay for it.. The impact of demurrage and detention on a customer could be quite profound in cases like above.. Let me illustrate the problem with an example.. CMA-CGM’s demurrage and detention tariff is as below* : In the above example, a 20′ General Purpose Container (GP), is allowed a total of 5 free days within which the customer has to take the full container out of the terminal, unpack it and return it to the empty container depot nominated by CMA-CGM.. Shipping line is the large company with large income, why need to burden importer and exporter who pay your service? If the ship was moving from the anchorage to the berth and the laytime at that time had not been used up then time will not run during the period of moving to the berth. Simply enter your dimensions and weight to get an instant estimate. Shipping lines have been accused of increasing the tariffs for demurrage and detention while reducing free time, both of which impacts severely on the bottom line of the consignee.. Shippers and consignees have accused shipping lines of trying to generate revenue from demurrage and detention to the extent that they are calling it an abuse by the shipping lines to maximise profits.. Manufacturer used a forwarder from Turkey, in highsight first mistake, Ship arrives in Fremantle WA, shipping company now tells us they haven’t been paid for the sea freight from Turkey. He said it was not his responsibility. If the rates continue to fall and not reach a sustainable level, more lines could disappear which means lesser choices for the customers in a market with already limited options.. Trade needs to remember that they need the shipping lines as much as the shipping lines need them and need to stop basing everything on ocean freight rates (already one of the smallest component of their logistics costs) and stop cutting the lines down in terms of freight rates.. Customer claimed that they have informed the forwarder to collect on 29/4. How does the demurrage and detention fee come into play when a customer own his/her container? ‘Once on Demurrage, Always on Demurrage’ phrase is sometimes overused and often misleading. Access is available only by Friday / Saturday .being week end you are helpless even if you want to. For example: In order to arrive at the number of days on demurrage, a calculation of the time in port must be made making reference to the time allowed (laytime) and whether time is counting or whether it is an exception and does not count. For most of these transactions, equipment (containers and chassis) is needed to efficiently move the cargo to or from our ships for delivery to our customers. Learn how your comment data is processed. On the other hand, if lay time had expired and the ship was on demurrage then time would continue to run for such an event and the owner is entitled to demurrage for this time. correlation between demurrage and detention and freight rates is not addressed. Detention is a charge levied by the shipping line to the importer in cases where they have taken the full container for unpacking (let’s say within the free days) but have not returned the empty container to the nominated empty depot before the expiry of the allowed line free days.. This means that the subsequent demurrage and detention charges beyond extended free time will not automatically be calculated basing on the tariffs of 1st tier. in terms of this question, shipping lines will charge demurrage only once container has already been discharged and not while it is on the ship.. thanks for the good article. After that the container reached Ludhiana on 15th June and the shipping line send us an invoice of Rs 29 Lakhs ( approx ) with charges of ( ground rent + demur rage + detention ).
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