Container Unloading & Operations
Published by Demurrage Solutions · 5 min read
Demurrage and detention are key concepts in logistics that can lead to significant fees if not properly managed. Understanding the difference between the two is essential for efficient container handling and timely deliveries.
Demurrage refers to the time that a filled container spends within the terminal. This starts from when they are offloaded from the vessel or train and ends when they are picked up.
Sometimes, demurrage penalty charges are applied if your full container spends too long waiting in the port or terminal before being picked up and taken out. These charges are used to prevent containers from being stored at the terminal for a long period of time.
Detention refers to the time spent outside of the terminal. This time covers the moment the full container is collected until the empty container is returned to the port or depot. For importers this time would be your time to unpack.
Detention penalties can also be charged when you hold on to the container for too long. You will be provided with a time to return the container, if you exceed this time then a penalty will be charged. These containers are essential to shipping goods across the world, and are in constant use, so are required to be returned in time.
Depending on the local set up, Demurrage, Detention and Free time may be charged separately or combined together. When it is combined it will be referred to as Combined Demurrage and Detention.
While Demurrage and Detention are different, they each play an important role in the shipping process. If you are importing or exporting, it is important that you prepare for both stages to ensure that you receive your goods on time.
Free time is the time you are given during Demurrage and Detention before you are charged a penalty fee. This is generally given free of charge by the carrier to allow you to complete the Demurrage and Detention process. When you go beyond this free time you will be charged penalty fees, so it is important to ensure that you know the date and time the free time ends.
Want to know more about Demurrage, Detention, and Free time? Feel free to get in touch with us, we will answer your questions.
If you have an operation requiring a container loading/unloading or warehouse management crew and support staff, reach out today. One of our team members will be in contact with you so we can get to know your operation and your requirements. Give us a call or email us now.
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