Know the Difference
Before you can avoid these charges, it’s crucial to understand what they are and when they apply:
- Demurrage: This is a fee charged for storage at the terminal. It is incurred when a container remains at the port beyond the “free days” allotted by the shipping line.
- Detention: This is a charge for keeping the shipping line’s equipment (the container) beyond the allowed “free time” after it has been picked up from the port.
Why D&D Happens
Charges are often triggered by a number of predictable issues:
- Late Documentation: Delays in releasing the Delivery Order (DO) or paying customs duties.
- Customs Issues: Disputes over HS codes or unexpected inspection delays.
- Logistical Challenges: Unavailability of trucking slots or congestion at the depot, which prevents timely pickup or return of the container.
Prevention Tactics
You can take proactive steps to avoid these costly fees:
- Pre-Clear Documents: Start preparing and settling duties even before the vessel arrives at the port.
- Confirm Free Time: Always know the number of free days for both demurrage and detention and negotiate for extensions on long-haul routes if needed.
- Time the Truck: Carefully coordinate the truck’s arrival with the DO release and terminal availability. Avoid weekend gate-outs that can lead to weekend detention fees.
- Coordinate Empty Returns: Depot locations and timings for empty container returns can change frequently, so stay ahead of the latest instructions.
UTradeShipping’s Controls
We help you stay ahead of D&D charges with a systematic approach:
- We provide proactive arrival tracking to give you advance notice.
- We perform a thorough document pre-check to flag potential issues early.
- We use D&D dashboards to monitor free time by each shipping line.
- We proactively request extensions when delays are beyond your control, giving you peace of mind.
