The charge is based on the size and type of the container, as well as, the destination port. Hence in this case port/terminal collect 2 days storage fee from customer for early container arrival? Even though there are distinct differences between demurrage, detention and port charges, many are still oblivious to these differences and there have been several questions on this blog relating to these charges.. Let me explain how demurrage, detention and port charges work.. Freight costs are charged per container whether 20’ or 40’ and the cost is calculated from loading at a port till discharging at the other. If a port closes due to high winds so therefore the container cant be unloaded is it reasonable for the shipping line to charge the consignee demurrage? 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. Bunker Adjustment Factor (BAF) relates to the cost of the bunker or in other words, the fuel for the ships. 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? SynConHub Liner services Routing and schedules Cargo Tracking Container tare enquiry Container dimensions VGM - Delivery - SWB Online services Arrivals (Genoa) Arrivals (Naples) Departures Charges Banking Details Mailing Lists Video The Department of Shipping yesterday instructed foreign shipping lines and their local agents not to impose container detention charges on the … Find the right route, get Maersk office locations, discover local solutions, payment options and more. LINER LOCAL CHARGES : List of Local Charges ( Overall )-Detention & Demurrage Tariff-SSL_THC: List of Local Charges ( By Port ) South East Asia Region . Difference between Maritime, Shipping, Freight, Logistics and Supply Chain. How does demurrage, detention and port charges work..?? 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.. Please clarify. Now, regarding port charges, one day you should do an article on how to deal with the “other port charges” when trading in dry/wet (and I suffered them in liners also). Are the methods for calculating demurrage/ detention for containers and demurrage/ detention for bulkers/ tankers same? Hi Mani, that would very much depend on your local port and their tariff.. For example, in South Africa, if you bring in containers before the opening of the stack period for a particular vessel, there will be storage charges plus early arrival charges.. Any chance you could help with a query please? Essential cookies are absolutely essential for the website to function properly. Keep up the good work. Welcome to the world of Shipping - Its all about you! In its broadest form to cover a door to door movement, shipping costs can be divided into ocean costs and landside costs both having its own individual components. Some ports/terminals allow the stuffing (packing)/destuffing (unpacking) of the containers within the port area and charge customers based on the port tariff.. In that case is there any extra cost I’ll need to pay due to the delay caused by other importer? In case of delays more than 5 days, the line charges Detention (generally same tariff as import detention) for the days that the empty is kept with the client as empty or full.. Once the container is packed and say for example the shipper is unable to ship the same due to any reason, then the Demurrage will be charged at the rate fixed by the line till the full container is shipped out.. What I have mentioned above is the generic and most common form of use of these two terms demurrage and detention.. While there are various factors and components that govern the application and charging of shipping freight costs, it needs not be complicated if both the buyer and seller understand these costs and when it is applicable and who needs to be paid. 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 that all known costs relating to the business are discussed and finalised before the shipment commences.. 1 in schedule reliability and awarded "Container Shipping Line of The Year India-Far East Trade Lane". Ltd., (formerly known as Cosco (India) Shipping Pvt Ltd.,) has been operating in India for around 25 years. Landside costs may be further split into port, road, rail, documentation, customs etc each of these categories having their own costs such as Terminal Handling, Wharfage, Cartage, Chassis Usage, Tri-axle, Railage, Documentation Fee, Delivery Order Fee, Customs brokerage fee etc. Various shipping lines use various methods of calculating the BAF which in the past used to be a percentage value of the freight, but in recent times is being charged on a per 20’ or 40’ basis. -Trained personnel at all our branches with a vast experience in liner shipping for handling any complex logistical necessities of our patrons -Using latest software for performing our business is one of the key features which helps us to integrate various verticals into one platform to ensure our customers have all the information available of their shipments at ease. 8 points to consider before you sign a bill of lading, 6 points to help you compete in the shipping and freight industry, Do I need cargo insurance for my shipment, When does a Bill of Lading become a Contract of Carriage, International Code of Signals and its application in the maritime industry, Who are the readers of Shipping and Freight Resource. Using above dates, since the port only offers 3 free days which expired on the 4th of July , then there will be 8 days of port storage till the 12th of July to be paid alongwith the demurrage.. Ocean costs have many components but the main costs are Ocean Freight; Bunker Adjustment Factor (BAF); ISPS; Emergency Risk Surcharge; Destination Arbitrary; Low Sulphur Surcharge; Peak Season Surcharge; Currency Adjustment Factor and more. Your access to this site has been limited due to abnormal connection. finally they denied to accept the orders by DG shipping and we were forced to pay the amount Rs 5 Lakhs. In simple terms, shipping costs are the costs for the movement of cargo from Point A to Point B. For instance, in Long Beach you can only use your 20 DC containers for 4 days at no cost, in Busan, it’s 10 days on average (for import and export + demurrage & detention combined). For example, freight maybe quoted in EUR but the shipping lines costs are in USD. Cosco Shipping Lines Indonesia JL. Port storage may also happen for containers that were short shipped (for example a vessel terminates its operations and sails before schedule) or transhipment containers that have been sitting at the port for long awaiting a transhipment vessel.. This site uses Akismet to reduce spam. You can not pay storage charges directly to terminal. Why it happens and what to do when it happens.. Hi Nur, DM/DT and port charges work on consecutive days without any break.. Do you have examples of any port that works 5 days a week these days.. We stuff the container on 4.03.2020 for USA from Ludhiana and it was rail out on 7.03.2020 and arrived on 11.03.2020 at Mundra. Hi there! THC is not a constant charge across the many ports on a shipping route even with the same shipping line. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. There are several charges associated with a shipment and demurrage, detention, port charges can be considered as “unexpected, non-budgeted, uncosted, unforeseen” charges because no one in their right minds wants to incur these charges.. 1. But if there are any weather based delays creating demurrage for the customers, shipping lines can also use same reasoning that weather is an act of god and why should they bear additional costs for container hire etc.. 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.. While some of these port charges may be unavoidable, demurrage and detention charges on the other hand are totally avoidable charges, but in a lot of cases due to mishandling, misunderstandings and not following the proper protocols, these charges occur.. I have a question about detention. Shipping Process. We are passionately committed to global trade and strive to increase global prosperity while driving sustainability. Our strength is our strategic positioning in the dynamic markets of the Middle East, China, India and Africa. - 5 days free of charge, day 6 - 9 Eur / day; MSC: 100 EUR THC + 40 EUR docs + m / h 1940 EUR + ISPS 15 EUR = 195 EUR; MAERSK: 120 EUR THC + 35 EUR ddf + 6 EUR ISPS + 1930 EUR m / h = 191 EUR; Hamburg Sud: 110 EUR THC + 30 EUR docs + 16 EUR ISP… Linkedin widget/Analytics" data-cli-script-type="non-necessary" data-cli-block="true" data-cli-block-if-ccpa-optout="false" data-cli-element-position="body"> Depending on the oil price the BAF fluctuates. In terms of container shipments, port charges may include but not limited to below : Is quite simply the charge levied by the port for the loading and discharging of a container from the ship.. THC differs from port to port, terminal to terminal around the world and is charged both by the load port and discharge port.. The hero of this article, the THC, is a completely localized charge and is set by the port/terminal at the various locations. Forwarder claimed that they need 48 hours notification to collect and de-hire the containers. These cookies do not store any personal information. This free days is different from the “port free days” which is the number of days allowed by the port/terminal to keep the containers in the port/terminal area free, after which the port storage as published in the port/terminal tariff will apply.. A charge levied by the port for a container that arrives in the terminal after the stacks into which it is to be taken has been closed.. or in other words, the fuel for the ships. Do you have an educational qualification in Shipping, Freight or Logistics. Detention is a charge levied by the shipping line to the importer in cases where they have taken the full container for unpacking (let’s say within the free days) but have not returned the empty container to the nominated empty depot before the expiry of the allowed line free days.. Thanks. Hi James, wish I could help, but I don’t know the process in Felixstowe, so am not sure whether you can pay directly to port or not.. Each port has its own systems.. As the shipping lines sometimes move the containers to a private depot to avoid storage charges for the customer. There are several charges associated with a shipment and demurrage, detention, port charges can be considered as “unexpected, non-budgeted, uncosted, unforeseen” charges because no one in their right minds wants to incur these charges.. Can the consignment package released after paying it so he can use it to pay the overstay payment in a country. In a container shipping line operation, the cost of the container, repair, maintenance, leasing etc works out to around 20% of the shipping line’s cost.. A container, like a ship, will make money for its owner only when it is in circulation and not when it is idle.. We develop groundbreaking, scalable, digital logistics technologies and services that go far beyond the transport from A to B. Our easy-to-use and intuitive platform enables our customers to optimize and manage their entire global supply chain. This is why we take a look at the various types of shipping and the costs involved with it. But in the majority of the countries there is a difference between demurrage and storage.. Line in your country how these terms and free days are defined to defer a 40ft export!, multiple components may be covered in the global container shipping and a company that prides itself on global... Protection of the leading brands in the above case, the term demurrage seems be! 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