## What are demurrage and detention charges?

Demurrage is charged by the shipping line per day per container from the date of discharge till the full container is moved out of the port or terminal for unpacking. Detention is charged per day per container from that time till the empty container is returned to the shipping line’s nominated depot.

What are demurrage charges?

Demurrage amounts may differ based on terminal or carrier and often increase after an initial period of time. Daily demurrage charges can typically range from \$75 to \$150 per container per day, but that’s just for the first 5 days or so. Charges generally increase the longer the cargo stays on the terminal.

What is a detention charge?

Within the shipping industry, the terms “detention charges” and “per-diem charges” (or, “per day charges”) are often used interchangeably. These charges are assessed to the cargo owner when a container is not returned within a set number of days (free days).

### How is detention calculated?

Per diem detention fees are typically calculated based on when the containers leave the port, terminal or depot through the time they are returned there. They range from \$50-\$100 per container per day on average until equipment is returned. Driver detention fees vary based on the company, equipment, and geography.

Who is responsible for paying detention charges?

The shipper is generally responsible for demurrage charges, but the consignee also may be legally obligated to pay, depending upon who was at fault for the delay and which party was contractually responsible to pay freight or other charges.

How are demurrage charges calculated?

In the calculation of Demurrage charges to the shipowner/port authority, the demurrage rate is multiplied by the number of days/part days over the agreed free days.

#### How do you calculate demurrage and detention?

From the day you exceed your number of free days, demurrage and detention charges will be added….Demurrage calculation: How expensive is it?

1. Number of free days: 5.
2. Days in total charged with detention and demurrage: 20.
3. The rate on 20ft on the first 10 days: 60,00.
4. The rate on 20ft after the 10 days: 120,00.

What is detention period?

Detention time is the length of time water is retained in a vessel or basin or the period from the time the water enters a settling basin until it flows out the other end.

Who is responsible for demurrage and detention charges?