What Are The Differences Between Demurrage, Port Detention, Overdue Fees And Storage?

In international logistics, freight forwarders and cargo owners often complain about overtime fees, overstack fees, demurrage fees, port demurrage fees, etc. So what are these fees and what are the differences? Hangbao will sort them out for you now: Demurrage, also translated as port demurrage, is a time range from the time the box lands at the dock to the time it is taken out of the dock after customs clearance. If it exceeds this period, the shipping company will need to charge you for it. For example, if the shipping company gives you 3 days of free demurrage, if you do not take the box out of the port within 3 days, then the shipping company will start to charge you for demurrage.

Detention, also translated as demurrage or overdue fee, is a time range from the time the container is picked up from the dock to the time you return the container to the port. If it exceeds this period, the shipping company will need to charge you. Generally speaking, the free time given by the shipping company = free demurrage + dree detention.

There is another knowledge point that is easy to confuse, called "Storage". Some people may ask, what is the difference between Storage and demurrage? Note: Storage ≠ Demurrage Storage, also translated as overstack fee, the time range includes the time from the box landing at the dock to the customs clearance and unloading from the dock. Some people may say, isn't this the same as demurrage? NONONO, this fee is not charged by the shipping company, but by the port. Generally speaking, ports with slow customs clearance will give longer free demurrage, for example, in South Africa, it will give a maximum of 21 days. Australia may not reserve special demurrage for you. These are the same as free time, and are determined by the strength of each freight forwarding company. And storage, the time is usually fixed.

So how much do you need to pay? All fees are regulated by the shipping company and the port area, and the fees are fixed. Shipping company fees are mostly in US dollars, but some are settled in local currency, which is usually stated at the back of the bill of lading. Port area fees are in local currency. In addition, when charging fees, they are generally charged in stages.

Others: 1. There are overage fees for both import and export. 2. You can apply for a reduction or exemption of overage fees with the shipping company. 3. Forget about the overstack fee, you cannot apply. 4. There is no overage fee for self-owned containers SOC, but there is an overstack fee. 5. The calculation period for overage fees for general containers and special containers is different, usually 3-6 days per stage.