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What is Demurrage Charge, Detention Charge, Storage Charge/Rent?

Have you ever received a bill from a shipping company and there were expenses that you weren’t familiar with? It’s not strange that you don’t know and don’t understand. So today we’re going to give you a better understanding of some of the terms that you might encounter on your bill when you receive your bill. To prevent you from being exploited by your carrier.

Demurrage Charge

Demurrage Charge is the cost of using a heavy container placed in a port. The shipping line is the person who collects this cost. Normally, the shipping line has basic freetime for customers 3-5 days. For outbound, if returning the heavy container and placing the container in the port beyond the freetime specified by the shipping line, there will be a cost incurred according to the rate specified by the shipping line.

On the other hand, if the inbound container is delayed or if the container is placed in the port longer than the shipping line requires, it will incur costs.

Detention Charge

Detention Charge is the cost of using a container outside the port. The shipping line is the person who collects this cost.

Detention counting starts from hauling empty containers at the container yard until returning heavy containers at the port of departure. The arrival portion will be counted from the day the heavy container is dragged out of the port until the day the container is returned empty.

If the distance or freetime time exceeds the line specified, this part of the cost will be incurred.

Storage Charge/Rent

Storage Charge/Rent is the cost of space where heavy containers are placed in the port. The port is responsible for this cost. The storage count is similar to the Demurrage count because it is a heavy container placed in the same port. But must hold the Freetime time at the port is determined by the Storage Freetime may or may not be equal to Demrruage Freetime depending on the specified port.

Summarize

The Demurrage Charge and Detention Charge are the ship’s container rentals. The ship line collects the costs, while the Storage Charge/Rent is the rental fee for the space where the heavy containers are placed in the port. The port is responsible for this charge.