There’re several local charges for an import/export shipment; and some of them often cause us confused why it arises. Today, SEA DRAGON’d like to help you to distinguish what is DEMURRAGE, DETENTION and STORAGE CHARGE.

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In brief:

DEMURRAGE: is the charge levied by the shipping for holding the full container at the port/ terminal

DETENTION: is the charge levied by the shipping for holding the empty container at the warehouse

STORAGE: is the charge levied by the port or the terminal for allocating the full container at the port/ terminal

EXPORT CONTAINERS

For the export containers, usually, shipping line give before ETD-10 free days within which the shipper could pick up the empty, pack it and load it full; before ETD-7 free days within the full container could be returned to the port/ terminal; and the Port/ Terminal allowed before ETD-5 free days the full container allocated at the Port/ Terminal. It mean for general export containers, shipper have 3 free-day detention, 7 free-day demurrage, and 5 free-day storage.

• If the full container isn’t returned to the Port/ Terminal after empty pick up 3 days, detention will arise.
• If the full container is returned to the Port/ Terminal earlier 7 days than ETD, demurrage and storage will arise.
• In other case, the full container is returned after closing time, causing off-loaded, and the container has to listed waiting for next sailing vessel, then the demurrage and storage are also arise.

In case, shipper load cargo at the Terminal, there isn’t DET, but DEM and Storage are still calculated as above.

IMPORT CONTAINERS

For import containers, usually shipping lines enable the full containers to be held at Port/ Terminal within 5 days (Demurrage), empty containers to be held at consignee’s warehouse within 3 days (detention); and Port/ Terminal permit the full containers to be allocated at the Port/ Terminal 5 days (Storage)

• In case, consignee clear customs and pick up the full container after the 5^th day (calculated from the date of arrival), Demurrage and Storage will arise.
• In other case, consignee return empty container after the 3^rd day (calculated from the date of picking up full containers), Detention will arise.

Source: Sea Dragon International Logistisc

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