Eastern News
Detention & Demurrage: How the Eastern Way Mitigates Post-Shipment Charges
October 21, 2022
Many importers and exporters ship their goods based on the lowest quoted shipping rate to increase their profit margins. Since detention and demurrage charges are invoiced post-shipment, how often are these charges taken into consideration when it comes to the bottom-line costs of importing/exporting?
Understanding Demurrage & Detention
Demurrage and detention charges are essential for shipping lines to ensure efficient container stock use. These post-shipment charges compensate the shipping line for its containers' use and encourage the merchant to return the container as soon as possible for the shipping line to re-use and have a fast turnaround.
Demurrage is the charge the merchant pays for using the container within the terminal, beyond the free time-period. Detention is the charge that the merchant pays for the use of the container outside of the terminal or depot, beyond the free time-period.