There’s no way to predict the final fees that will land at your feet due to inefficient cost management. Pass some (or all) of the shipping cost on to your customer as … "Container's Rent" charges are included in the international ocean freight rate. Please feel free to contact us and discuss your commercial shipping needs: Direct line: 020 8867 0904 option 1. : Europe - Far East Europe - Middle East/Red Sea/Indian Sub-Continent US to/from Europe. Break Bulk: Break Bulk Cargo: The cargo which can be counted (Other than Containers). What practices do you follow to avoid demurrage, detention and port charges..?? When they do occur these charges may create quite a financial impact on the whole business and sometimes these costs could be so prohibitive that some customers abandon their cargoes at destination due to these costs.. Let us look at what is demurrage, detention, causes of demurrage and detention, why is it charged, who charges it and who pays for it .. Are the methods for calculating demurrage/ detention for containers and demurrage/ detention for bulkers/ tankers same? ... then you "rent" the container from the steamship line that you use on the shipping from the USA. Customer claimed that they have informed the forwarder to collect on 29/4. In such cases, the consignee would look to the shipper for compensation, but for the shipping line, this is revenue lost and they need someone to pay for it.. But current practice in Vietnam is that carrier/ forwarding port charges always higher than published daily storage charges as there is service arrangement between the carrier and terminal. There may be additional charges depending on where you are shipping to, but the above are the core freight cost components when shipping from China. Freight transport is the physical process of transporting commodities and merchandise goods and cargo. How does demurrage, detention and port charges work..?? Does the concept of DM/DT and free days include working days only or weekends as well? Different route means different calculation method. Our network and understanding of these key trading and commercial centers means that we can provide world class services to our customers. Each & every container has vessel cut off, explained in below example before that cut off you have to enter your container at port, Suppose, if you have export shipment from Ahmedabad ICD to Jebel Ali port and vessel plan is as per below, As per above vessel plan, your container must be reached at Mundra port before vessel cut off 07/03/2018 after customs clearance. Are liners and ports looking at the same watch? While some of the port charges are valid and unavoidable, demurrage, detention and some of the port charges (like port storage, early arrival, late arrival, amendment, shifting etc) are entirely avoidable if everyone in the chain follows the process that they need to follow.. If the free days is shown as just “free days” it usually refers to “combined demurrage/detention” which is what a lot of the shipping lines apply to keep the calculations simple.. Exports : In the case of exports, shipping lines normally give about 5 free days within which the shipper has to pick up the empty, pack it and return it full to the port.. 5. Useful article which i came across trying to find an answer to the following:-. Charge that may be levied by the port for additional handling done for containers that have already been received in the port for export or required to be moved to an area for inspection for imports etc.. This charge is usually for the account of the shipping line unless the shipping line is carrying out the restow operation due to a customer’s request for say incorrect stowage due to cargo misdeclaration or change of destination.. But in the majority of the countries there is a difference between demurrage and storage.. Detention & Demurrage charges will be applicable for shipments wherein customers have exceeded the standard free time applicable both in the import & export cycles. Although the most common market practice is to combine demurrage and detention, there are several cases where these are charged separately and therefore it is important to know the difference between demurrage and detention.. Demurrage is a charge levied by the shipping line to the importer in cases where they have not taken delivery of the full container and move it out of the port/terminal area for unpacking within the allowed line free days.. I submit my documents but let’s assume one of the other importer that has his shipment in same container, doesn’t submit his documents. You can not pay storage charges directly to terminal. Combined demurrage/detention calculation example: In above example, if “combined demurrage/detention” principle was to be used, then. Foreseeable hidden costs in shipping include: Charges if your supplier sends your goods to the UK; Having your goods sent to a UK port, (aka CFR or CIF shipping terms) can seem like the easiest and cheapest way of importing goods – however, in actuality it’s the riskiest. Advanced Charge: A charge paid by a carrier to an agent or to another carrier, which the delivering carrier then collects from the consignee. In some countries, specially in Argentina and Brazil, they are “charging” up to USD 40k per cargo holds approvals (Customs, unions, surveyors) you either pay or stay ballasting per another 10 days.. for what I know is usually paid by the captain with the money they hold in the safe.. but after that I don’t how it goes btwn charterers and shipowners .. can you please elaborate? Then Demurrage penalties imposed for excess use of container from its unlo… For example, the Amazon Easy Ship Weight-Handling Fees for 800 gms package being shipped to a regional location will amount to INR 69 i.e. Thanks. Any chance you could help with a query please? When it comes to international trade, majority of the buyers and sellers use Incoterms to decide on what each other’s responsibilities and liabilities are in terms of the business, especially related to costs..Generally, there is very little room to manoeuvre in terms of additional and unbudgeted costs incurred on the shipment and therefore in their own interest it is important that the buyers and sellers take necessary precautions to ensure … So in essence for this container, the customer would pay. INR 48 (charge for first 500 gms) + INR 21 (charge for next 500 gms). Flat rate shipping: A single rate for all orders; Price based shipping: The shipping price is based on the total price of the items being purchased. The acceptance of Late arrival containers is at the discretion of the Port/Terminal Operator.. We take details of shipment in advance B/L, invoice packing list for import and try to file documents in customs for clearance after IGM is file one day before shipment arrival in LCL case as shipment is destuffed at CFS so we can take delivery on same day. Our Clients use Ocean Insight’s software to get real-time alerts on containers that are stuck in port. Only associated to Japan Line. Sometimes your freight forwarder asks sir! ONE Apus – Container stack collapse – Update – 31st Dec, A Korean Container Shipping Alliance (K-Alliance) set to launch in 2021, Vintage Shipping – a look at the way shipping was done in the 80s and 90s, ONE Apus – Container stack collapse – Update – 23rd Dec, Difference between Demurrage and Detention. Detention charge will apply from the day of Empty Pickup He said it was not his responsibility. 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