Demurrage and container detention charges in international shipping are calculated as follows:
Demurrage
Definition: Demurrage is a fee paid by the shipper if the container has not been removed from the terminal yard after the free storage period has expired. It is collected by the port operator.
Calculation Elements:
Free storage period: Calculated from the date of unloading until the shipper’s loaded container leaves the terminal. The free storage period varies by port, generally lasting 5-7 days.
Billing Period: Calculated daily, starting from the day after the free storage period ends until the shipper picks up the container.
Rate Standard: Rates vary by port, generally based on container type and number of days of detention. For example, at Maersk ports in South China, containers are free of charge for 1-7 days, with a detention rate of 140 yuan/day for 8-12 days and 280 yuan/day for 13 days or more.
Demurrage
Definition: Demurrage refers to the overdue occupancy fee incurred by shipping companies due to the importer’s failure to return the container within the free period stipulated by the shipping company, resulting in the container being detained at the port or depot.
Calculation Elements:
Free Demurrage Period: This period typically begins the day after unloading, with regulations varying significantly between ports. Standard containers typically receive a 7-day demurrage period, while specialized containers such as reefers and flat rack containers typically receive a 3-6-day demurrage period.
Billing Period: This period begins the day after the free demurrage period ends and ends when the container is actually returned by the shipper. Demurrage is charged on a daily basis.
Rate Standards: Charges vary significantly between shipping companies, and fees may increase in a stepped manner as the duration of the demurrage period increases. For example, Maersk’s small container service is free for the first 7 days, 55 RMB/day for days 8-15, 150 RMB/day for days 16-20, and 300 RMB/day after 21 days.
(Note: All fees listed above are for reference only. Please refer to your actual invoice for details. Thank you!)
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