International ocean freight detention and demurrage fees are mandatory costs incurred due to exceeding the allowed time for container use/storage. The fee standard is based on a tiered system depending on the container type and the number of days. The key to obtaining a waiver is “advance application + reasonable justification + proactive communication.”
Below, Weefreight will provide detailed explanations to help you.
I. Core Definitions and Charging Logic (Understand the differences, avoid confusion)
- Detention: Container Overuse Fee
Definition: A fee charged daily when the consignee fails to return the empty container to the shipping company within the free period after picking up the container. Essentially, it’s an “overdue container rental fee.”
Charging Entity: Shipping company; the fee is settled directly with the shipping company.
- Demurrage: Terminal Storage Overdue Fee
Definition: A daily storage fee charged when the container is not picked up from the terminal within the free period after arrival at the port. Essentially, it’s a “terminal occupancy fee.”
Charging Entity: Terminal/Container yard; the fee is settled with the terminal.
Core Differences
Detention: Applies to “container usage,” starting from container pickup and ending when the empty container is returned;
Demurrage: Applies to “terminal storage,” starting from arrival at the port and ending when the container is picked up.
II. Fee Standards: Tiered Increase, Different Prices for Different Container Types
- Free Period (Basic, strive for this first)
Detention Free Period: 7-10 days (full container load, shipping company default), no detention fee for LCL (less than container load);
Demurrage Free Period: 3-7 days (terminal default), may be shortened to 3 days during peak seasons/congested ports. 2. Fee Structure (Tiered daily rates, the longer the duration, the more expensive)
Demurrage Fees (20GP example):
Days 1-7: Free;
Days 8-14: US$50-80/day;
Days 15-21: US$100-150/day;
Over 21 days: US$200-300/day (doubling incrementally);
40GP/40HQ fees are 1.5-2 times that of 20GP.
Detention Fees (20GP example):
Days 1-3: Free;
Days 4-7: US$20-30/day;
Days 8-14: US$40-60/day;
Over 14 days: US$80-100/day.
Key Features
Tiered pricing: The longer the overdue period, the higher the daily fee, resulting in greater losses;
Shipping company/terminal differences: Standards vary among different shipping companies and ports; refer to the actual notification for details.
III. Tips for Applying for Fee Reduction: 3 Steps to Minimize Losses
- Apply in advance to gain an advantage (most effective)
Anticipate delays: Customs clearance delays, consignee pickup delays; submit a fee reduction application to the shipping company/terminal 3-5 days in advance. Do not wait until fees are incurred before communicating;
Application channels: Apply to the shipping company through your booking agent, or contact the shipping company’s customer service/sales directly for higher efficiency. 2. Valid Reasons and Precise Communication (Easier Approval)
Prioritize using “force majeure / official reasons”: customs inspection, port congestion, weather disasters, policy adjustments (attach official notices/inspection records);
Secondly, use “cooperative relationship”: long-term cooperative clients, large-volume clients, using “stable future shipments” as leverage to apply for fee reductions;
Avoid using “internal reasons”: incomplete documentation, consignee delays (these reasons are almost never approved).
- Complete and Standardized Application Materials (Increase Approval Rate)
Required materials: Fee reduction application letter (clearly stating vessel name and voyage number, container number, number of days overdue, and reason for application), relevant supporting documents (inspection slip, port congestion notice), copy of bill of lading;
Application letter template: Concise and clear, highlighting “reasons beyond our control” + “sincere long-term cooperation,” avoiding lengthy descriptions.
IV. Practical Pitfalls to Avoid: 3 Key Considerations
Clarify responsibilities, do not blindly assume liability:
If the delay is due to the shipping company/terminal (e.g., vessel schedule delays, terminal operational errors), apply for a full fee reduction and provide supporting documents;
If the delay is due to internal reasons (slow customs clearance, delayed pick-up), aim for a “50%-80% reduction” or “charging at the minimum rate.”
Handle promptly, do not delay:
Apply immediately after the delay occurs; do not wait for the fees to snowball. Some shipping companies “do not accept fee reduction applications after 15 days of delay,” so the earlier you apply, the better.
Obtain written confirmation and keep records:
After the fee reduction application is approved, be sure to have the shipping company/terminal issue a written confirmation of the fee reduction to avoid future disputes. Keep all communication records for future reference. (Note: The above information regarding timelines or costs is for reference only. Please refer to the actual situation at the time of shipment for specific details. Thank you!)
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