What does Detention mean in logistics?

What does Detention mean in logistics?

Detention: Costs incurred by a customer for using equipment beyond the given free time, typically outside of the terminal. Detention is charged when the carrier’s equipment is still in use by the shipper or consignee beyond the LFD, regardless if full or empty.

What does detention charges mean in shipping?

What Are Detention Charges in Shipping? Within the shipping industry, the terms “detention charges” and “per-diem charges” (or, “per day charges”) are often used interchangeably. These charges are assessed to the cargo owner when a container is not returned within a set number of days (free days).

What does Detention mean in trucking?

detention time
Truck drivers say that waiting at warehouses for new shipments to load or unload is one of the most aggravating parts of their jobs. It’s called “detention time,” and it’s a result of retail and manufacturing warehouses not being organized to get their shipments ready in time.

What is the difference between detention and demurrage?

Demurrage is charged by the shipping line per day per container from the date of discharge till the full container is moved out of the port or terminal for unpacking. Detention is charged per day per container from that time till the empty container is returned to the shipping line’s nominated depot.

What is the difference between storage and detention?

While demurrage is exclusively charged by the shipping line, storage charges are paid to the port authorities, not to the shipping lines.

What are do Charges?

Delivery order is the order given by carrier to the party to take delivery of goods. Once after arrival of cargo at final customs port of destination, the said carrier of goods issues delivery order to consignee (or his order) after collecting necessary charges if any.

How are detention charges calculated?

How are demurrage charges calculated? In the calculation of Demurrage charges to the shipowner/port authority, the demurrage rate is multiplied by the number of days/part days over the agreed free days.

What is detention invoice?

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. This free period is supposed to allow the merchant a realistic period of time for: The loading and delivery of the container for an export.

How is detention paid?

Typically, detention pay trucking standards dictate that trucks must be loaded within two hours. After that, the shipper is expected to pay from $25 to $100 for each hour the driver is kept waiting over the limit.

How long is a normal detention?

Typically, detentions are served after school. Instead of going home at the end of the day, the student reports to a designated classroom where he or she must sit in a desk for an amount of time generally rang- ing from 10 minutes to two hours, with an hour or less being most typical.

What is Det Dem?

Hello Anis – 14 days combined dem/det means consignee has 14 days from the date of full pick up till the date of empty return and it is upto the client to choose whether it will be 10 days dem + 4 days det or 8/6, 6/8, 7/7 etc etc..

What is export detention?

Detention charges also happen when you export containers. A user is charged detention when an empty container has been picked up for loading and is not returned within the set free-days. Typically, shipping lines allow for 5 free-days to pick-up the container, load it, and return it full to the port.

How can I avoid detention fees in my freight shipments?

With some basic information, you can plan your freight shipments around detention fees, and help you and your freight broker, avoid them. 1.) What is “detention charges” in shipping terminology? A detention fee is assessed when the truck is held at the pickup or delivery location longer than the allotted “free time.”

What are detention charges in LTL shipping?

Usually detention charges are only applied in truckload shipping. Though it is possible to get these fees in LTL, they’re very rare. If an LTL carrier is forced to wait more than 15 minutes or so, the driver will usually just leave the pickup or delivery location. They have too many other stops to make on their route.

What are “detention charges”?

What is “detention charges” in shipping terminology? A detention fee is assessed when the truck is held at the pickup or delivery location longer than the allotted “free time.” Now, the “free time,” varies depending on carrier. Generally, it’s two hours at pickup and two hours at delivery.

How can I avoid demurrage and detention charges?

In order to avoid demurrage and detention charges, import and export shipments must be handled within a specified grace period, referred to as free time. Free time is the period of time during which no demurrage or detention charges will apply for the use of a container, in addition to basic freight costs.