What is free time demurrage and detention?
Definition of Demurrage, Detention, Demurrage and Detention Combined, and Free Time. Demurrage and detention both refer to fees incurred by importers and exporters alike when containers are either not picked up or dropped off within the appropriate amount of time.
What does demurrage time mean?
1 : the detention of a ship by the freighter beyond the time allowed for loading, unloading, or sailing. 2 : a charge for detaining a ship, freight car, or truck.
What is demurrage and storage charges?
While both terms refer to fees charged when an unpacked shipment exceeds the allowable free time, demurrage charges are levied by the shipping company and storage charges are levied by the port. Ports charge storage fees to discourage delays and reduce congestion at busy terminals.
How long is free time at port?
3-5 days
It is normal for a port to offer 3-5 days of free storage. However, each terminal has slightly different rules which can change at any time.
What is free time in container shipping?
“Free time”: the period of time offered by the Carrier to the Merchant free of charge, covering both demurrage period and detention period, beyond which additional charges such as, but not limited to demurrage and detention charges, will be due to the Carrier.
What is free time in shipping?
What is demurrage free?
Demurrage refers to the charge that the merchant pays for the use of the container within the terminal beyond the free time period. Detention refers to the charge that the merchant pays for the use of the container outside of the terminal or depot, beyond the free time period.
Who should pay demurrage charges?
In most cases, the consignee, or receiving party, must pay a demurrage fee when goods sit too long in the terminal. In some cases, the consignee may also face a fee from a carrier for taking too long. For example, when receiving a maritime shipment, it may be necessary to return containers to the vessel.
When does demurrage free time begin at the Rail Ramp facility?
For inbound cargo at the rail ramp facility, demurrage free time begins 1 working day after container arrival at the rail ramp facility. Dry – Free time is 4 working days plus day of interchange.
How much does demurrage cost in Canada?
USD 425 Canada Import Demurrage Dry Non Operating Refrigerated Days after free time expiration Current Effective June 18, 2019 Days after free time expiration 1st Day to 4th Day
What is the cost of the Cy rail ramps?
USD 765 Rail Ramps, applicable to CY delivery cargo, where the rail provider collects storage directly from the customer according to their tariff: Dry Non Operating Refrigerated
What is demurrage on a railcar?
Demurrage is a charge on railcars or other equipment held beyond the allowable free time by or for consignor or consignee for loading or unloading. Review demurrage rules and charges below.